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Labour replacement technology is technology that makes a work process more intensive for the worker- by having tools that can monitor a workers’ activity (like a tablet or a GPS tag) or having your work process governed by an algorithm that decides how long it should take you to perform a given task.

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By doing this it reduces demand for labour and since labour costs are one of the most important costs that companies have to pay, this allows companies to increase their profit margins. Not only that, but decreasing the size of the workforce increases the number of people looking for work, which increases the bargaining power of company owners and reduces that of workers. So deploying new technology benefits company owners both directly and indirectly.

work process – Arabic Translation – Keybot Dictionary