The ODU Accord
How an ODU Accord works
Three steps that turn an AI transition into a fair, verifiable commitment.
Company announces the transition
A company planning to deploy AI or robots that replace workers announces the transition on the ODU Platform — publicly, before it happens. Affected workers are notified and invited to the platform. The transition is timestamped as public record from day one.
ODU independently calculates the Displacement Compensation
The ODU Audit System — a multi-agent AI infrastructure — independently assesses the economic impact of the transition and produces the company's Displacement Effect Index (DE Index). Workers see their individual monthly share. 65% must vote to accept before the Accord proceeds.
Company pays. ODU distributes. Workers receive.
The company signs the ODU Accord and makes one monthly Displacement Compensation payment to ODU. ODU distributes each worker's share directly to their account — not through the company. The Accord and its status are permanently recorded in the public ODU registry.
The company retains the majority of AI efficiency gains. Workers receive an ongoing monthly Displacement Compensation for as long as the system runs. The transition is permanently recorded in the public ODU registry. Nobody is simply discarded.
The calculation
How the DE Index is calculated
The Displacement Effect Index is not an estimate or a negotiation. It is independently computed from verified financial, operational, and market data. Here is the exact methodology — in full.
Monthly Displaced Payroll (MDP)
Sᵢ = verified annual salary of worker i, sourced directly from payroll records. n = total number of displaced workers. MDP is the aggregate monthly wage value the company no longer pays — the baseline from which all further calculations derive.
AI System Monthly Total Cost (ASTC)
P / L
Acquisition or licensing cost amortised over system lifetime L (months, min 36, capped 120)
M
Average monthly maintenance, support, and infrastructure cost from vendor contract
O
Monthly human oversight cost — operators, trainers, and supervisors retained for the AI system
Net Monthly Efficiency Surplus (NMES)
EM = AI_Output_Index / Worker_Baseline_Index
The Efficiency Multiplier (EM) captures how much more productive the AI system is relative to the workforce it replaces. It is derived from vendor-supplied throughput benchmarks cross-referenced against independent third-party audits and ODU's benchmark library — vendor claims cannot be accepted without verification. If NMES ≤ 0, no economic surplus exists and no Accord is required.
The DE Index Score (0–100)
R_w
20%
Labour Displacement Ratio
n / N
Labour Displacement Ratio
n / N
R_p
25%
Payroll Displacement Ratio
MDP / total monthly payroll
Payroll Displacement Ratio
MDP / total monthly payroll
R_s
40%
Surplus-to-Payroll Ratio
NMES / MDP, clipped to [0, 1]
Surplus-to-Payroll Ratio
NMES / MDP, clipped to [0, 1]
H
15%
Hardship Coefficient
(U_r + (1 − S_r) + A_f) / 3
Hardship Coefficient
(U_r + (1 − S_r) + A_f) / 3
The Hardship Coefficient H = (U_r + (1 − S_r) + A_f) / 3, where U_r is the local unemployment rate normalised to the national benchmark, S_r is the skills replaceability score from occupational databases (O*NET or equivalent), and A_f is the age vulnerability factor — the proportion of displaced workers aged 50 or above. All components are normalised to [0, 1] before weighting.
Compensation Rate & Monthly Displacement Compensation
The Compensation Rate κ scales linearly with the DE Index — a DE of 0 produces a 20% share of NMES; a DE of 100 produces 45%. The 15% of MDP floor ensures workers always receive meaningful compensation even in low-surplus transitions.
Per-Worker Distribution — The ODU Formula
Sᵢ / Σ Sⱼ
Salary weight (70%)
Worker i's annual salary as a fraction of total displaced payroll
Tᵢ / Σ Tⱼ
Seniority weight (30%)
Worker i's years of service as a fraction of total service years across all displaced workers
The formula is published, fixed, and auditable — part of the ODU Standard. In homogeneous workforces it produces near-equal distributions. In mixed workforces it reflects the real economic loss of each individual.
Data the ODU Audit System requires
FROM THE COMPANY
- Full payroll roster of displaced workers (salary + start date)
- Total company headcount and payroll
- AI system acquisition cost and contract terms
- Vendor throughput benchmarks and system specifications
FROM INDEPENDENT SOURCES
- Third-party AI productivity benchmarks for the system category
- National wage data (BLS, ONS, or equivalent)
- Regional unemployment data for displaced workers' locations
- Occupational replaceability scores (O*NET or equivalent)
ODU AUDIT AI AGENTS COMPUTE
- Cross-reference vendor claims against independent benchmarks
- Apply industry-specific efficiency modifiers
- Calculate H (Hardship Coefficient) from demographic data
- Produce DE Index score with ± confidence interval
Formal Challenge Process
Either party — company or worker group — may formally challenge a DE Index result within 30 days of the DE Index Report. Disputes are reviewed by an independent three-member adjudication panel and resolved within 60 days. During the challenge period, the proposed Displacement Compensation is held in escrow. The panel's ruling is final and permanently recorded in the public ODU registry.
Common questions
What is the Displacement Compensation?
The Displacement Compensation is the monthly payment a company makes to ODU, which then distributes individual shares directly to each displaced worker. It is not a fine or severance supplement — it is a structured share of the net economic gain the company captures by replacing human labour with automated systems. It is paid for the operational lifetime of the system, or the agreed Accord term.
How is each worker's monthly share calculated?
The ODU Distribution Formula splits the monthly compensation pool using two weighted pools: 70% is distributed by salary (each worker's share proportional to their salary as a % of total displaced payroll) and 30% by seniority (each worker's years of service as a % of total years across all displaced workers). The formula is published, fixed, and auditable — part of the ODU Standard.
How is the Displacement Compensation amount determined?
The ODU Audit System — a multi-agent AI infrastructure — independently assesses the transition and produces the company's Displacement Effect Index (DE Index). It considers the aggregate displaced wages, the AI system's documented efficiency output and operating cost, the system's expected lifetime, and industry benchmarks. A company cannot submit its own efficiency figures without independent verification.
What if workers don't accept the Accord?
An ODU Accord requires 65% of affected workers to vote to accept before it proceeds. Workers who declined are still bound by the majority outcome and receive their share. If the 65% threshold is not reached, the Accord does not proceed — the company does not receive ODU Committed status for that transition.
Is the ODU Accord legally binding?
The ODU Accord is a voluntary commitment agreement — not a legally enforced contract. Companies adopt it because they believe in the obligation it represents, or because their customers, employees, and investors expect it. If a company stops paying, ODU marks the Accord as Lapsed publicly, suspends their ODU Committed designation, and the record remains permanently visible in the public ODU registry.