Lawyers and representatives from the Japan Metal, Manufacturing, Information and Telecommunication Workers’ Union (JMITU) held a news conference in Tokyo to announce a settlement with IBM Japan Ltd. on a labor dispute involving the use of AI in employee evaluations. The agreement, approved by the Tokyo metropolitan government’s Labor Relations Commission, requires IBM to disclose to the labor union the data used by AI for assessing employees, with the union overseeing the transparency process as there are currently no specific laws in Japan governing AI usage in labor relations.
The conflict arose when IBM Japan implemented AI technology in 2019 for assessing employee performance and work attitudes, affecting salary increments. The union reacted by filing a petition for a relief order in April 2020, citing concerns over the lack of transparency, potential invasion of privacy, discrimination, and automation bias resulting from AI-influenced managerial decisions. Despite IBM's initial reluctance to disclose AI-related information, the settlement now necessitates the revelation of all 40 assessment factors used by the AI system, as well as clarifying the AI's role in salary evaluation criteria within the company's wage rules.
The union's demand for transparency centered on ensuring that AI does not unduly influence managerial decisions to the detriment of employees' rights and working conditions. The settlement is viewed as setting a precedent for labor-management agreements that prioritize worker protection in AI implementation, with the hope that this model will influence similar practices in other workplaces. Furthermore, the involvement of a labor union in establishing disclosure rules related to AI usage is considered significant given the global prevalence of AI technology in various industries, highlighting the potential impact on other companies that have integrated AI into their operations.