Negotiating the Future of Work: Automation and New Technology
“A shorter working week without loss of pay can help workers stay in work when new technology reduces the number of tasks that need to be done by people. We need a radical response to the new realities of the labour market. The gains from technology should be used to change the lives of working people including better retirements and shorter working time.” Sharon Graham, Executive Officer, Unite
The literature on automation and digitalisation tends to predict that industry 4.0 will generate significant financial and productivity gains for the UK. PWC estimates that artificial intelligence alone could add £232 billion to the UK economy by 2030. It is also estimated that smarter manufacturing, employing robotics, artificial intelligence, industrial internet of things and additive manufacturing, could add a further £455 billion. Whilst the Wales 4.0 report warns that there are no guarantees that new technology will automatically lead to productivity gains in Wales, an agreement could ensure that any future gains are fairly distributed.
In principle, the introduction of new technology to improve productivity should lead to better pay and conditions for members, whether that is a pay increase or a reduction in working time with no loss of pay. Whilst it hard to find current agreements that link pay deals specifically to the introduction of technology, there is mounting evidence that technological change is helping to popularise the idea of a four day week with no loss of pay in the UK and beyond.
Example: Four day working weeks in Europe
In 2018, IG Metall in Germany, which represents the metalworking and electrical sectors, won workers the right to reduce their working week from 35 hours to 28 for two years along with a 4.3% pay rise to increase flexibility, particularly for workers with caring responsibilities. The union is now calling for workers in the automotive industry to be given the same. It argues that the car industry is struggling with the transition to electric and the impact of the pandemic and that cutting hours could be a way of retaining the skilled workers and expertise needed for the transition, as well as saving on redundancy costs.
Early in 2021 the Spanish government also accepted a proposal to trial a project to subsidise employers that introduce a four day working week. The pilot will be guided by a panel of experts – including representatives from government, unions and business.
Example: Using technology to protect pay and shorten working week at Royal Mail
When Royal Mail planned to roll out new digital HR technology across the company, the CWU got an agreement that it would not be used to affect pay.
The terms of reference for the HR system state that:
• Scan In/Out data will not be used for the automatic reduction of contractual pay or allowances based on data captured, or to reduce overtime pay where a (verbal) contract has been agreed with the manager prior to commencement.
In its local level agreement at the South Midlands Mail Centre, CWU representatives chose to push back against the shift patterns that the new HR Technology came up with and instead used the introduction of another new technology, parcel sorting automation, to argue for a shorter four day working week for many.
Shifts at the Northampton site will change from an eight-hours on five days to a 9.5-hour four-day duty, with the extra time worked being ‘split’ between the start and end of each shift.
Area processing rep Paul Bosworth said that the new package will “will enable people on the new patterns to have either Fridays, Saturdays or Mondays off work, improving their work-life balance and giving them more time with their families.”