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But"People who work for OAI got fired for using AI to do their job"

That's exctly what happened

Just make it "contractors training..." And then it's fine?

As I see it, the distinction is between the work of designing and managing the training process, and the work of providing human training data. It's generally considered a good idea to automate the former, but there's a conceptual (information theoretical) issue with automating the latter. I don't know if it makes things more fair, but it's not quite a contractor vs FTE issue.

All data labeling is training, but not all training is data labeling. In this sense, the headline is correct, I don’t get the nitpicking.

Some people would die of dehydration if they read the headline "H2O is a chemical that often kills people".