One in four workplaces across Europe now relies on algorithms or automated systems to make decisions that directly impact employees — from hiring and scheduling to performance reviews — raising growing concerns among unions and labour experts about transparency and worker rights.
According to a new study commissioned by the European Commission and conducted by Lithuanian research agency Visionary Analytics, algorithmic management tools are being used in 25% of European workplaces, a figure projected to grow sharply over the next decade. These technologies are already common among digital platforms such as Uber and Lyft, but their use is expanding rapidly into more traditional sectors including logistics, retail, and manufacturing.
A joint report by the European Commission and the International Labour Organisation (ILO) cited France’s logistics sector as an example, where AI-powered route planning systems help drivers optimise deliveries but also enable “extensive monitoring and surveillance.”
The European Trade Union Confederation (ETUC) has warned that workers are often unaware of how algorithms influence their employment conditions. “It’s a new and challenging topic, and many trade unions do not yet have the expertise or resources to address it,” said Tea Jarc, ETUC’s confederal secretary.
Algorithmic management can determine work hours, pay rates, performance assessments, and even collect sensitive data such as mental health information. Jarc said some companies track employees even after they log off, often introducing new algorithms or metrics without consulting unions or notifying staff. “It’s time companies understand that they cannot hide management decisions behind algorithms,” she said.
While existing EU legislation covers some aspects of algorithmic management, such as transparency and work intensity, the European Commission acknowledged that gaps remain — particularly in defining rest time and ensuring oversight.
Labour experts say the rise of AI in management is not new but has accelerated with recent technological advances. “What we’re going to see in the next few years is a more sophisticated and pervasive version of algorithmic management,” said Alessio Bertolini, a researcher at the Oxford Internet Institute.
Currently, only 23 collective agreements across Europe reference algorithmic management, according to data from Uni Europa, a federation representing over seven million workers. Unions in Spain and Denmark have led the way, but Jarc noted that many smaller unions lack the funding to hire technical experts needed to negotiate such agreements.
Although the EU’s 2024 Platform Workers Directive prevents dismissals based solely on automated decisions and ensures some human oversight, unions argue it does not go far enough. Both Jarc and Bertolini say broader legislation is needed to protect all workers — not just those in the gig economy.
“We are lagging behind,” Jarc warned. “Technology is already shaping the working lives of millions across Europe, but it’s not yet being properly regulated.”
The ETUC is now pushing for a dedicated EU directive on AI in the workplace, potentially to be introduced alongside the European Commission’s Quality Job Roadmap initiative later this year.
