Unions, labor experts urge protections for workers under algorithmic management and in offshored services

Eric Gottwald, policy specialist on trade and economic globalization for the AFL‑CIO, told the House Ways and Means Subcommittee on Trade that debates about cross‑border data flows and digital trade often omit the human impact on workers. Gottwald said open global dataflows have enabled offshoring of call‑center and back‑office jobs and support platforms that outsource content moderation to developing countries where working conditions can be poor.

"These technologies can shortchange workers' earnings, expose workers to unsafe work conditions on the job, infringe on the right to form unions, and exacerbate employment discrimination," Gottwald said. He described algorithmic management systems that hire, evaluate, monitor and sometimes fire workers, and he told members that employees are often unaware these tools are in use.

Members asked for concrete policy responses. Representative Dan Kildee and others said digital trade agreements should include enforceable labor standards tied to International Labour Organization principles. Gottwald and other witnesses suggested adapting enforcement and monitoring tools from goods trade to services and digital sectors, and they highlighted collective bargaining as a venue where unions are beginning to address surveillance and AI management software.

Witnesses also raised specific concerns about the global content moderation supply chain and call‑center outsourcing; Gottwald referenced complaints filed against major outsourcing firms and said unions are increasingly including surveillance and AI governance in bargaining. Freedom House and others linked data‑localization laws to human‑rights risks in authoritarian states, noting that such laws can compel companies to hand over user data to security agencies.

The subcommittee did not vote on any proposals. Members and witnesses agreed to continue exploring how digital trade rules can incorporate labor protections and monitoring mechanisms appropriate for services and digital commerce.