Labor pacts that ennoble

The strikes in Hollywood and at car plants reflect how both workers and employers appreciate capacity for individual growth. 

The Monitor's View

The drivetrain for a typical car with an internal combustion engine has about 2,000 moving parts. In electric vehicles, there are fewer than 20. That discrepancy illustrates one of the main concerns driving American autoworkers to picket lines. Ford and Volkswagen estimate that electric cars require 30% less labor.

Already disrupted by the pandemic, labor markets – and the nature of work itself – are undergoing profound transformations shaped by the acceleration of green technologies and artificial intelligence. These shifts have stoked fears for job security. But they may also be compelling companies and the people they employ toward a greater mutual appreciation based on the capacity of individuals for growth.

One sign of this is the deal struck last night to end the summerlong writers strike in Hollywood. The agreement, which has yet to be ratified by the Writers Guild of America leadership, reportedly runs hundreds of pages. But one of the key sticking points and the last to be resolved – related to the use of AI – required just a few paragraphs.

The long strike gave society time to reflect on the irreplicable nature of human creativity. That discussion isn’t just about whether machines can replace people, but also about how production can benefit when innovation reflects the qualities that ennoble intelligence. “We need to make sure that they’re [machines and technology] representing the best of who we are and can become as a species,” Paul McDonagh-Smith, an information technology professor at the Massachusetts Institute of Technology, has noted.

Amid the greening economy and the rapid development of AI, multiple studies this year have shown that companies that both embrace technological change and invest in retooling workers to adapt fare better. So do the workers themselves.

A report by the Center for Economic Policy Research in Paris, based on a study of 16,000 firms in Germany, found that “workers holding routine jobs prior to implementing technological and organisational change do not suffer employment losses or reduced earnings growth on average, but instead move up to more skilled jobs.”

Companies such as Ford and Amazon have announced significant investments in employee retooling as they adapt to AI and green technologies. In a notable gesture of inclusivity, a Senate hearing on AI earlier this month brought unions and civil rights organizations together with tech giants. Vice President Kamala Harris in July called on companies and workers to reject the “false choice” of advancing innovation and protecting Americans.

“If the only option that the labor movement places on the table is ‘No, we don’t want the technology that will hurt workers,’ that will not be enough,” Daron Acemoglu, an MIT economist, told The New York Times. Technology can be used “to the great benefit of the workers as well as the businesses.” That recognition marks the promise of a new era of growth for workers and employers.