Under Union Pressure, Commonwealth Bank Reverses AI Chatbot-Related Job Cuts

Under Union Pressure, Commonwealth Bank Reverses AI Chatbot-Related Job Cuts

Australias largest bank, Commonwealth Bank (CBA), announced on August 21, 2025, that it was reversing its decision to cut 45 jobs in its customer service department. The bank had initially planned to replace these employees with a new AI chatbot, claiming the technology would reduce the workload for human operators. However, this decision was met with stiff resistance from the Finance Sector Union (FSU). The union took the case to a workplace relations tribunal, presenting evidence from employees that the workload had not decreased but had actually increased since the chatbots implementation, leading to the need for overtime. Faced with the facts and public outcry, CBA admitted its assessment was flawed and apologized to the employees. The bank offered the affected workers a choice: to remain in their positions, move to another role within the company, or leave voluntarily. This case has become an important precedent, demonstrating that AI implementation should be aimed at assisting, not replacing, employees, and that unions can effectively protect workers rights in the age of automation.

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