AI will destroy and create jobs, but it will not negotiate with unions. Are we ready to rethink the company-worker relationship?

March 8th Strike: Is It the Right Path?

The world of work is undergoing a silent but unstoppable revolution. While unions in Uruguay and around the world fight for better working conditions, a new player has entered the scene: artificial intelligence. It is not a worker, it doesn’t pay contributions, it doesn’t go on strike, and most importantly, it doesn’t negotiate.

The Union Dilemma in the Age of AI

Automation and artificial intelligence have already begun transforming Uruguay’s labor market. From chatbots replacing customer service agents to algorithms analyzing bank loans in seconds, AI is not a future threat—it is already here.
Unions face a paradox: if they oppose AI, they risk being seen as a barrier to modernization. If they accept it without a clear strategy, they risk becoming irrelevant.
🔹 The key question is: if AI replaces human tasks, who do unions negotiate with? Is it possible to unionize an ecosystem with fewer and fewer traditional employees?

 A Labor Framework That No Longer Fits

• Uruguay’s union model is based on employer-employee relationships, but in a world where freelancers and digital platform workers dominate certain sectors, this concept is fading. Moreover, algorithms don’t clock in, yet they compete directly with human employees.
• Uruguay has two options: attempt to regulate AI with the same tools from the 20th century or innovate in how it protects workers in a radically different labor environment.

Three Possible Scenarios

1. Resistance and Conflict: Unions attempt to curb AI through strict regulations, taxes, or protectionist measures. The risk: Uruguay loses competitiveness, and companies move operations to more flexible jurisdictions.
2. Adaptation and Reinvention: Unions negotiate with companies and the state to ensure a fair labor transition, promoting training in new technologies and securing a social protection system adapted to the new reality.
3. Collapse of the Traditional Model: If automation advances without a strategic response, unionism loses relevance and fragments, leaving each worker to negotiate their market value individually.

Global AI Competition: Uruguay Is Not Isolated

• Regulating AI at a national level is not enough. The technological revolution is happening globally, with countries like the United States, China, and the European Union investing billions in artificial intelligence.
• If Uruguay imposes excessive regulations, companies may move their operations to more flexible and competitive markets. In a world where automation has no borders, local regulation may become irrelevant if it’s not aligned with global realities.
• The competition for talent is also international. It’s not just about attracting investment but also about training and retaining AI talent that can compete in the global market. Without clear strategies, Uruguay risks falling behind while other countries move forward.

March 8th Strike: Is It the Right Path?

The PIT-CNT has called for a 24-hour general strike on March 8th, under the banner of a fairer and more equal country. Protest is a legitimate right, but is it the best strategy in a world where jobs are not defended with strikes but with innovation and adaptation?
A fairer and more equal country is not achieved by resisting change but by leading it. Will Uruguay choose to defend the past or build the future of work?

Writing by Federico Muttoni