Ethics in the digital workplace
Digitisation and automation technologies, including artificial intelligence (AI), can affect working conditions in a variety of ways and their use in the workplace raises a host of new ethical concerns.
Steel manufacturing company ISD Dunaferr announced a plan for the collective dismissal of 350 employees by the end of 2020. The company points to the dire situation of the steel industry in Europe, to the slowdown of the global economy, to the declining demand especially from the automotive industry, to decreasing output prices and burdensome environmental regulations as the causes for the internal restructuring. According to the company, strategic decisions including delays in investments and reductions in operational costs cannot compensate the necessity for a reduction in the employment level.
Redundant employees are reportedly presented with three options. First, they can be redeployed in vacant job positions or job positions filled with agency employees within the company. Second, they can receive financial aid amounting to their full salary for the first six months and to 80% of their salary for the subsequent six months from the Dunaferr Steel Foundation for Employment, which can provide as well training and education programmes, mentoring and legal advice. Third, they can receive severance payment, pursuant to national legislation. The company informed the works council and trade unions of the plan.
Update, 12/2/20: On February 12, Dunaferr informed the trade unions about the withdrawal of its dismissal plan, and also said that no new restructuring plans would be announced until the end of 2020. Furthermore, a two-step wage raise (3.4 percent basic salary increase) and, from July another 6.8 percent basic salary increase) was agreed upon with the trade unions.
According to a trade union leader, the coordinated action of the unions contributed to the change of heart on the part of the management: the unions planned a united demonstration on the very same day, February 12, before the Russian embassy. (Dunaferr is owned by the Russian conglomerate Dombass ISD.) But another factor contributing to the decision was the ongoing loss of staff. Many employees decided to look for jobs elsewhere after the announcement of the dismissals, and also due to the previous position of the management that refused to negotiate about any wage raise before summer of 2020.
Eurofound (2019), ISD Dunaferr, Internal restructuring in Hungary, factsheet number 98957, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/98957.