Essential workers

First, by inking this deal, Coles frames itself as future-forward and logistically driven. Groceries and grocery-store labour become more data, just like the hedge funds, healthcare, or immigrants that other Palantir clients coordinate.

Supermarkets have been under fire over the past year for increasing profit margins through a pandemic and cost-of-living crisis, and accused of underpaying workers.

The Palantir deal continues this extractive trajectory. Rather than paying workers more or passing savings onto customers, Coles has chosen to invest millions in technology that will “address workforce-related spend” as part of a larger effort to cut costs by a billion dollars over the next four years. Food (and the labour needed to grow, pack and ship it) is transformed from a human need to an optimisation problem. 

Second, dependence. As my own research found, Palantir clients tend to enjoy the all-encompassing data and new features but also become dependent on them. Data mounts up; new servers are needed; licensing fees are high but must be paid.

Much like Apple or Amazon, Palantir’s services excel at creating “vendor lock-in”, a perfect walled garden which clients find hard to leave. This pattern suggests that, over the next three years, Coles will increasingly depend on Silicon Valley technology to understand and manage its own business. A company that sells a quarter of Australia’s groceries may become operationally reliant on a US tech titan.

Anglicare Australia executive director Kasy Chambers said the rental affordability crisis prompted the organisation to look at the experience of those in employment.

“Essential workers are the backbone of our communities, yet they cannot afford to rent. Our snapshot shows that more and more essential workers are being pushed into serious rental stress,” she said.

The snapshot used the internationally accepted measure of rent exceeding 30 per cent of a household budget to be considered as causing financial stress.

“Virtually no part of Australia is affordable for aged care workers, early childhood educators, cleaners, nurses, and many other essential workers we rely on. They cannot afford to live in their own communities,” Chambers said.