Microsoft & unions sign landmark AI workplace deal

Microsoft and the Australian Council of Trade Unions have signed a framework agreement that sets out joint work on skills, worker input into AI deployment, and policy engagement on artificial intelligence in Australian workplaces.

The agreement describes commitments on information sharing, mechanisms for worker feedback during technology development, and collaboration on policy and training. It also references rights and protections for workplace union delegates in representative roles.

Microsoft said the parties plan formal learning sessions led by Microsoft specialists and curriculum resources for unions and workers. The company also said it will work with the ACTU Institute on AI training for union leaders and staff.

Worker input

The agreement sets out plans for "channels for workers to share experiences, insights and concerns" so those perspectives inform how AI systems get designed and deployed in workplaces. The parties also committed to consult in good faith if disputes arise, according to Microsoft.

"Australians deserve AI that helps people thrive," said Steven Miller, Area Vice President of Microsoft Australia and New Zealand. "This agreement signals our commitment to ensure workers' voices are at the heart of Australia's AI transformation and no one is left out of the national opportunity this technology presents. We're proud to come together with the ACTU to set a new standard for responsible AI diffusion across Australian workplaces," added Miller.

Microsoft positioned the framework as part of a broader approach to responsible AI. The company said its Office of Responsible AI leads that work and that the Australian agreement sets expectations for ongoing dialogue as technology changes.

Policy agenda

The agreement includes a workstream on policy and skills. Microsoft and the ACTU said they will identify areas of shared interest on responsible AI policy. They also plan to focus on upskilling and reskilling.

One section points to the role of unions and employers working together during technology shifts. Dr Andrew Charlton commented on the announcement on behalf of the federal government.

"The Government welcomes this positive step between the ACTU and Microsoft. When businesses and unions work together it is Australians who ultimately benefit the most. Labour will always back efforts to ensure new technology works for people, and not the other way around. Our adoption of AI should embrace the timeless principle of the fair go; the ideal that no-one should be held back or left behind on Australia's journey," said Dr. Andrew Charlton MP, Assistant Minister for Science, Technology and the Digital Economy.

The announcement aligns with the government's National AI Plan, according to Microsoft. The company also cited economic modelling that links AI adoption to a $115 billion opportunity for Australia by the end of the decade, contingent on deployment approaches and governance.

Workplace protections

Microsoft said the framework builds on a memorandum of understanding agreed with several unions, including the Australian Services Union, Professionals Australia, and the Shop Distributive and Allied Employees Association. Microsoft said that earlier arrangement set out principles recognising rights and protections of Microsoft employees in Australia.

Miller also linked the framework to Microsoft's approach as an employer.

"We recognise our responsibility to lead by example when it comes to AI diffusion, and our aim is to be a gold-standard Australian employer," added Miller.

The Tech Council of Australia said the agreement signalled closer engagement between unions and the technology sector on AI. The industry body framed the move as relevant to adoption and innovation across the economy.

"This sends an important signal about cooperation between the tech sector and unions on AI transformation. Initiatives like these demonstrate how we can work together to help recognise the broader benefits of AI for Australia and ensure we make the most of the opportunities AI presents – on adoption as well as innovation," said Damian Kassabgi, CEO, Tech Council of Australia.

Next steps

Microsoft said the two organisations plan joint learning sessions over the coming year. They also plan to set up regular mechanisms for worker input and pick priority sectors for pilots. Microsoft said these pilots will focus on productivity, job quality, safety and inclusion.

The company also linked the Australian agreement to its work in other markets, including an ongoing partnership with the AFLCIO in the United States. Microsoft said it has also exceeded its commitment to train one million Australians and New Zealanders in AI by the end of 2025, and cited an uplift of 30 percent over that target.