Algorithmic Management and Collective Representation in the German Platform Economy. A Fairwork study
As part of a Fairwork study, the project examines and evaluates working conditions on digital labour platforms, focusing in particular on how algorithmic management affects work and what forms of worker organisation are emerging in the platform economy.
The increasing use of data-based and automated control processes on digital labour platforms has triggered a lively discussion about the concept of algorithmic management. While the automated execution of coordination and control tasks offers potential productivity gains through the more efficient use of resources, algorithmic management tools are also used - often without the knowledge of those affected - in the recruitment, control of work processes and monitoring of employees. This reinforces power imbalances between platforms and employees and can lead to the deskilling and precarisation of work.
So far, the intensity with which algorithmic management approaches are being discussed has been contrasted by somewhat ambivalent empirical research findings. Digital control and algorithmic management systems appear in very different forms; their purposes and associated effects on labour deployment differ considerably due to the specific work organisation and type of activity in various application contexts and other economic sectors. Algorithmic management can potentially enable repressive forms of labour control. However, the question of what specific consequences the use of algorithmic control systems has on labour is anything but clear, and the question arises as to how the differences in the outcomes of labour can be explained.
The need for regulation is becoming evident in the discussions. However, it is unclear to what extent forms of data-based control mediated by algorithms are covered by existing forms of regulation (e.g. GDPR, Works Constitution Act, etc.) and what new regulatory instruments are required accordingly (see, for example, the discussions at the European level on data protection and regulatory issues relating to digital (labour) platforms and the Artificial Intelligence Act). One area in which the issue of algorithmic control is currently being discussed particularly intensively is that of self- and co-determination. This is not surprising insofar as the use of algorithmic and, therefore, often non-transparent and largely automated decision-making processes in companies directly threatens to undermine participation and co-determination rights. For those involved in sectoral or corporate co-determination, questions of algorithmic control, its application, and the possibilities for organisation in the workplace are therefore crucial.
The project aims to contribute to this debate by examining digital labour platforms in Germany with regard to the use of algorithmic management systems and their consequences for labour standards, as well as possible regulatory options. In a comparative study of different areas of the platform economy (including delivery services, ride-hailing services, and domestic work), the following questions are addressed:
- What approaches to algorithmic management can be found on platforms? How do they affect working conditions? How do they differ between different areas of the platform economy?
- What forms of organisation and collective representation of workers' interests are developing in the platform economy?
- What influence do existing data protection instruments have, and what particular challenges can be identified for the future legal regulation of algorithmic management?
However, the aim of the project is not only to better understand working conditions on digital labour platforms but also to use the results in cooperation with the most important stakeholders to improve working conditions. The results will, therefore, also be fed into the discussions on the EU Directive on the regulation of platforms.
The proposed project is part of the Fairwork network. The Fairwork project, based at the Oxford Internet Institute (OII) and the Social Science Research Center Berlin (WZB), has analysed, evaluated and assessed digital labour platforms in 39 countries on five continents based on five principles for fair work. The proposed project will carry out Fairwork reporting in Germany for 2025 and 2026.
The project will be carried out in collaboration with Prof Dr Maren Borkert and Dr Luke Troynar from XU Exponential University of Applied Sciences and Prof Dr Mark Graham, Director of the Fairwork Project and Professor at the Oxford Internet Institute, University of Oxford.