On Friday, Alphabet Inc’s Google said it would roll back provisions that U.S. suppliers and staffing companies pay their employees at least $15 an hour and deliver health insurance and other benefits, which could let the tech firm avoid bargaining with unions.
In response to evolving labor regulations concerning contingent workers, Google has made significant policy changes, including the elimination of its 2019 policy.
These changes are designed to align with both U.S. and global labor laws and clarify Google’s relationship with temporary workers and vendors.
Clarification of Google’s Position
A spokesperson for Google clarified that the updates to their policies are intended to bring them in line with other large companies. They emphasized that Google is not the employer of their suppliers’ employees, a distinction that the company seeks to reinforce with these policy adjustments.
Response to National Labor Relations Board Ruling
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The announcement follows a ruling by the U.S. National Labor Relations Board in January, which determined that Google was a “joint employer” of workers provided by staffing firm Cognizant Technology Solutions.
This ruling requires Google to engage in collective bargaining with the union representing these workers. Google is currently appealing this decision.
Impact of 2019 Policy
The labor board’s decision was influenced, in part, by Google’s 2019 policy, which was perceived to allow the company to exert control over workers despite not directly employing them.
By eliminating this policy, Google aims to address concerns raised by the labor board regarding its relationship with contingent workers.
Enforcement of Supplier Code of Conduct
Despite these policy changes, Google reaffirmed its commitment to enforcing a supplier code of conduct. This code requires vendors and staffing firms to maintain safe working conditions and fulfill their legal obligations. Additionally, Google highlighted that most of its suppliers operate in states where the minimum wage is at least $15.
Conclusion
Google’s policy changes reflect its ongoing efforts to navigate complex labor regulations and ensure compliance with legal requirements. By clarifying its relationship with contingent workers and reinforcing its supplier code of conduct, Google aims to uphold standards of fairness and safety within its workforce.
Tony Boyce is a seasoned journalist and editor at Sharks Magazine, where his expertise in business and startups journalism shines through his compelling storytelling and in-depth analysis. With 12 years of experience navigating the intricate world of entrepreneurship and business news, Tony has become a trusted voice for readers seeking insights into the latest trends, strategies, and success stories.