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Microsoft and ACTU Sign Landmark AI Workforce Agreement in Australia

SmartCompany

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Date Published
15 Jan 2026
Priority Score
4
Australian
Yes
Created
15 Jan 2026, 04:01 am

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Description

Microsoft Australia and the ACTU have signed a landmark agreement to embed worker voice and skills in AI deployment across workplaces.

Summary

Microsoft Australia and the Australian Council of Trade Unions have established a significant framework agreement to prioritize worker input and skills in the deployment of AI technology across workplaces. This groundbreaking agreement encompasses commitments to worker consultation, AI skill development, and public policy collaboration, aiming to integrate worker perspectives into AI system design. While not legally binding, the partnership is pivotal for ensuring that AI deployment aligns with workplace fairness and productivity in Australia. The agreement emphasizes the collaborative effort required to address AI's societal impacts and supports a more inclusive AI transformation process within Australian industries.

Body

Microsoft Australia and the Australian Council of Trade Unions (ACTU) have signed a landmark framework agreement aimed at putting workers’ voices and skills at the centre of how artificial intelligence is designed and deployed across Australian workplaces. Related Article Block Placeholder Article ID: 328397 Labor’s National AI Plan has no standalone laws, asks businesses to police themselves Tegan Jones Announced on Thursday, the Australian-first agreement outlines a set of commitments focused on worker consultation, AI skilling and collaboration on public policy, as AI adoption accelerates across industries. The framework is not legally binding, but commits both parties to consult in good faith if disputes arise. The agreement reportedly recognises the need for a strong collective worker voice during Australia’s AI transformation and affirms the rights and protections of workplace union delegates to fulfil representative functions. It also builds on the federal government’s controversial National AI Plan. “AI is a generational technology reshaping our society and economy at extraordinary pace,” Microsoft Australia and New Zealand area vice president Steven Miller said.  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. Under the framework, Microsoft Australia and the ACTU will initially work together across three core priorities: sharing information and learning, embedding worker input into technology development, and collaborating on public policy and skills. As part of the skilling commitment, Microsoft will work with the ACTU Institute to develop AI training specifically for union leaders and staff. This will include formal learning sessions and curriculum resources, aimed at building confidence and capability to support workers through Australia’s digital transformation. The agreement also establishes channels for workers to share experiences, insights and concerns so their perspectives can help inform how AI systems are designed and deployed, with a focus on supporting safe, fair and productive workplaces. Related Article Block Placeholder Article ID: 330034 Move over quiet quitting, Aussies are ‘job-hugging’ in economic uncertainty Jennifer Dudley-Nicholson On public policy, the two organisations will seek to identify areas of mutual interest to shape responsible AI settings and expand upskilling and reskilling opportunities so workers are better equipped to thrive in a rapidly changing economy. The federal government welcomed the agreement, describing it as a positive step for cooperation between business and unions. “When businesses and unions work together, it is Australians who ultimately benefit the most,” Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton said. “Labor 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.” The framework builds on a memorandum of understanding previously agreed between Microsoft and unions, including the Australian Services Union, Professionals Australia and the Shop Distributive and Allied Employees Association, which recognises the rights and protections of Microsoft employees and workplace delegates in Australia. “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,” Miller said. The announcement was also welcomed by the Tech Council of Australia (TCA). “This sends an important signal about cooperation between the tech sector and unions on AI transformation,” TCA CEO Damian Kassabgi said. “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.” Microsoft estimates AI could contribute up to $115 billion to Australia’s economy by the end of the decade. The company said the agreement also builds on its global work to put workers at the centre of AI diffusion, including an ongoing partnership with the AFL-CIO in the US. Stay in the know Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.