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"Most politicians still fail to recognize or downplay the threat of AI to workers, at the behest of Silicon Valley," said one veteran labor organizer.
In a first for a statewide candidate, California gubernatorial contender Tom Steyer on Friday proposed the creation of a wealth fund that would be paid into by artificial intelligence companies, with the money being used to fund jobs in key sectors of the economy.
The billionaire hedge fund founder-turned-environmental advocate, who has come out in support of a proposed tax on billioionaires' wealth and a single-payer healthcare system for the state and has described himself as a "class traitor," told Wired about his proposal to use a "token tax" to fund what he called the Golden State Sovereign Wealth Fund.
Big Tech companies would be taxed “a fraction of a cent for every unit of data processed” for AI uses, and some of the money directed to the fund through the taxation plan would be earmarked for jobs for people who lost employment due to the expansion of AI.
Jobs in healthcare, housing construction, and modernizing the state's energy infrastructure would be prioritized in the fund.
Steyer told Wired the plan would make California "the first major economy in the world" to guarantee jobs to people who have been displaced by AI.
“People all over this state are terrified that AI is going to hollow out this whole economy and they’re going to lose their jobs. Young people are worried they’ll never get a job,” Steyer told Wired. “We believe this can be an amazing transformational technology in many ways, but we’re not in the business of leaving people in California behind.”
The outplacement firm Challenger, Gray, and Christmas released a report Thursday showing that for the second straight month, AI was the leading reason companies cited for laying off workers. AI-related job cuts accounted for 26% of the 88,387 layoffs the firm recorded, with 21,490 people losing their jobs due to AI.
“Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is,” said Andy Challenger, chief revenue officer for Challenger, Gray, and Christmas.
Last October, Sen. Bernie Sanders (I-Vt.) released an analysis showing that AI and automation could eliminate nearly 100 million jobs in a decade—yet President Donald Trump and the Republican Party are aggressively pushing to stop states from regulating the industry.
Trump signed an executive order late last year calling on the Department of Justice to create an AI Litigation Task Force, which would target laws and proposals to require studies on the impact of AI on jobs, protect people from AI companion chatbots, and regulate the technology in other ways.
“Not regulating AI doesn’t seem remotely reasonable,” Steyer said Friday.
At a debate earlier this week, Steyer said AI cannot be allowed to "create 12 trillionaires and millions of people who lose their jobs."
"The number-one thing that we have to do is make sure AI is a tool for workers and not a replacement of workers," he said. "And we absolutely need to own part of it."
We can't let AI create 12 trillionaires and millions of people who lose their jobs. The people of California need to share in the wealth AI creates. pic.twitter.com/ts2Ru1J5IX
— Tom Steyer (@TomSteyer) May 6, 2026
Charles Idelson, former communications director for National Nurses United, applauded Steyer for "addressing a growing danger for California's working class."
"Most politicians still fail to recognize or downplay the threat of AI to workers, at the behest of Silicon Valley," said Idelson.
Steyer said in a memo that in addition to protecting Californians from job loss, the fund created by the token tax would "strengthen the foundation of the state’s economy, invest in our communities, and create beautiful, vibrant public spaces."
“To support these efforts," said the campaign, "Tom will also invest heavily in training and apprenticeship programs across the state.”
Steyer's plan for AI also includes an expansion of unemployment insurance and the creation of the AI Worker Protection Administration that would adopt new rules to protect workers' rights as AI continues to develop.
Devin Murphy, director for digital mobilization for Steyer's campaign, said the state faces a "defining question" after its tech industry helped build the AI economy: "Who benefits from it?"
"Tom Steyer is putting forward one of the first serious plans to ensure AI strengthens the middle class," said Murphy, "instead of hollowing it out."
There is broad and deep recognition that AI technology will reshape the future of work, and unions have decided to roll up their sleeves (and dust off their picket signs) to bargain how AI will be implemented, to do what, and to what effect.
For many pundits and policymakers, there is little doubt that Artificial Intelligence will devour the jobs of millions of people, including professionals formerly presumed immune to technological replacement. The only question is how many jobs will be lost, how quickly. In fact, there is nothing inevitable about AI—not its development, its deployment, or its impact. Massive job losses are not inherent in the algorithm, preordained by the laws of nature and physics. Rather than remaining struck by awe, we can reassert human agency over this technology. We can not only save jobs, but perhaps even make them better.
AI is not an abstract force that operates solely at the macroeconomic level. AI systems and agents are developed and implemented in ways specific to each sector, each workplace, each type of job. Although employers might focus myopically on cutting their wage bill, their employees know firsthand how the work actually gets done. They know what disclosures to request about how the technology would be used. They know how AI might affect the content and flow of their work, what training would be most helpful, and which implementations would be most likely to devalue their labor versus those most likely to enhance it. Thus, the most effective way to ensure that AI makes work life better and not worse is to empower workers to bargain about it.
By “workers” I mean people who rely on their own labor to earn a living—which is to say, most of us, whether we write reports, treat patients, teach kids, manufacture products, or stock warehouses. AI is not something that’s going to happen only to other people; it will affect all of us.
Workers need the authority and the power to bargain about the implementation of AI in the workplace, not just the effects. “Effects bargaining” is the traditional approach: After a technology has wiped out jobs, people negotiate a little severance pay to tide them over, and maybe some training for completely different jobs, if any such jobs exist. By contrast, our goal should be to make sure workers can negotiate for technology that makes their jobs better, more productive, more valuable. To avoid the car crash in the first place, if you will, and not just to apportion damages afterward.
AI will not destroy or devalue our jobs by itself, unless we let it.
One can imagine some objections to this approach. Some people might insist that AI is in irresistible force, that large-scale job destruction is inevitable, and that our task is to figure out other things for people to do to earn a living—or, if that’s not possible, to pay them a small stipend so they don’t starve. This defeatism is a short step away from the more nihilistic vision of the pure doomers, who think it might already be too late to save humanity from machine-led destruction. I love science fiction myself—but it is fiction, not history.
Another objection might be that placing restraints of any kind on AI companies in the United States will keep the industry from winning the global race for dominance. This is the Trump administration’s view. This logic is inverted. Nations should be governed for the benefit of their people, not just their Big Tech companies. Both the Republican and Democratic parties proclaim themselves to be the champions of the American worker. If so, the real triumph for the nation would be to ensure that technology enhances work and makes working people’s lives better, not to create havoc and economic devastation across the labor market.
Some might object that it is unrealistic to think that working people have the interest or ability to intervene effectively, to exercise their right to bargain about AI technology. But that is exactly what has been happening in the entertainment industry. One of the central issues in the 2023 strike by the Writers Guild of America against the Hollywood studios and producers was the use of AI in writers’ workplaces. The Guild represents the professionals who create scripts for TV and streaming series and for feature films. In late 2022 Open AI revealed that ChatGPT could write—coherently and at some length. Although the union did not conclude that robots had suddenly become capable of crafting award-winning scripts, Guild members recognized that their employers could use AI to do just enough to degrade and devalue their work.
During contract talks in 2023 the Guild proposed—and won, after a five-month strike—language that puts meaningful guardrails on the use of AI. These guardrails reflect the process writers and studios actually use to create characters and stories and full-length projects. They ensure that AI cannot be used to deprive writers of the opportunity to do the full range of writing work, and they deprive employers of the economic incentive to replace professional writers with algorithms. Guild members knew how to defend their careers, and they fought for meaningful protections.
The Guild members’ willingness to take on the AI issue, rather than passively accept that the technology would hollow out their careers, resonated with working people everywhere. The actors’ union (SAG AFTRA) also struck and won contract protections on AI, and the following year the other entertainment industry unions did the same. The entire labor movement has made workplace AI a top priority. There is broad and deep recognition that AI technology will reshape the future of work, and unions have decided to roll up their sleeves (and dust off their picket signs) to bargain how AI will be implemented, to do what, to what effect.
AI systems do not develop themselves; AI companies do. AI does not implement itself in the workplace; employers do. AI will not destroy or devalue our jobs by itself, unless we let it. Working people can and must protect their livelihoods by bargaining over AI implementation. Nothing less than the future of work is at stake.
This Public Service Recognition Week, we can show our appreciation for their grit and dedication by taking a page out of their book and joining the fight to protect public services and workers’ voices on the job.
There is no sector of the workforce more resilient than those who work in public service. As billionaires raise costs for working families and funding for essential services is slashed, these workers are being asked to do more with less.
Every day they go above and beyond to respond to the needs of their community: stepping up during extreme weather events, responding to emergencies, educating the next generation, keeping our streets clean, caring for patients and the elderly, ensuring public safety, and so much more.
This Public Service Recognition Week, we can show our appreciation for their grit and dedication by taking a page out of their book and joining the fight to protect public services and workers’ voices on the job.
Despite the importance of all they do, public service workers are often met with attacks by anti-union politicians, rather than the support they deserve. These attacks include budget cuts that endanger their jobs, staffing crises that jeopardize safety for everyone, and threats to pay and benefits.
The best way to channel our love for this country and commitment to our communities is by getting organized and standing together to make working people’s lives better.
Never giving in, public service workers answer this assault by getting organized.
Nationwide, the American Federation of State, County and Municipal Employees (AFSCME) members are using their union voice to demand more for their communities. Since the extremists in Congress and the Trump administration recklessly slashed funding for Medicaid, food assistance, and other programs to give tax breaks to billionaires, AFSCME members have been fighting at the state and local level to protect schools, hospitals, public works projects, and more.
In the courts, AFSCME members have successfully protected funding for museums, libraries, and childcare. And at the bargaining table, they continue to negotiate for fair wages, safe staffing, and respect, all of which ensure public services remain strong for the community.
They don’t do it to get rich or get famous. They keep going—behind the scenes and outside the limelight—because working in public service is their life’s calling.
Their resilience and perseverance teaches all of us an important lesson: The best way to channel our love for this country and commitment to our communities is by getting organized and standing together to make working people’s lives better.
So, this week, remember to stop and show your appreciation for the public service workers who show up every single day by joining them in the fight.