A key Labor party branch has committed to a national procurement system that would tie government contracts to protections for workers affected by artificial intelligence. The change, secured by the Shop Distributive and Allied Employees Association (SDA) at the weekend's ALP state conference, aims to use taxpayer spending power to stop AI from fragmenting jobs or weakening workplace conditions.
The union plans to bring the proposal to Labor's national conference at the end of July, where it hopes to embed the system in the party's national platform. The platform amendment calls for legislation that prevents AI from fragmenting work or eroding conditions, and for a procurement framework that ensures government contracting benefits workers rather than displacing them.
Procurement as a policy tool
The push reflects a growing view within the labour movement that procurement rules can shape how technology is deployed. The SDA, which represents retail, fast-food and warehouse workers, has been vocal about the risk of AI replacing or deskilling jobs. This approach mirrors broader efforts to embed ethical AI practices into public sector operations, a topic frequently covered under AI for Government.
Under the proposed system, companies bidding for government work would need to show their use of AI does not break stable roles into precarious gig work or reduce pay and conditions. For agencies already experimenting with AI, this would add a new layer of compliance to the procurement process.
The path to national adoption
The platform change passed at the ALP's South Australian conference, a significant step given the SDA's influence within the party. The union said it would now take the proposal to Labor's national conference to seek inclusion in the national platform. A successful vote would signal the party's commitment to using government contracts as a lever to regulate AI's impact on workers across the country.
Policymakers tasked with drafting these regulations will need a solid grasp of AI fundamentals. Resources like the AI Learning Path for Policy Makers are designed to support that need, covering the technology's implications for regulation and workforce policy.
Why this matters for government professionals
For procurement officers, policy staff and regulators, the proposal signals a potential shift in how contract requirements could be used to achieve social outcomes. If adopted, sourcing decisions would need to assess suppliers' AI practices alongside cost and quality. Departments would also have to define what "AI that benefits workers" means in practice and how it will be measured - a task that demands both technical and policy expertise. Building that capability early, through targeted training and clear internal guidelines, will likely become a priority as the debate moves forward.
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