Alphabet Inc’s Google announced on Friday its decision to eliminate requirements for US suppliers and staffing firms to pay their employees a minimum wage of $15 per hour and provide health insurance and other benefits. This move is seen as an effort to avoid potential union negotiations and comply with evolving labour regulations.
A spokesperson for Google stated that these changes including restrictions on temporary workers and vendors access to internal systems aim to align with shifting labour laws in the US and globally concerning contingent workers. The spokesperson clarified that Google has never considered itself the employer of its suppliers employees and aims to bring its policies in line with those of other large companies.
This announcement follows a January ruling by the US National Labor Relations Board which deemed Google a “joint employer” of workers provided by staffing firm Cognizant Technology Solutions. The board’s decision mandated Google to engage in bargaining with their union citing the 2019 policy as a factor allowing Google to exert control over workers despite not directly employing them.
The labour board’s efforts to prevent companies from avoiding negotiations with temporary and contract workers include a rule adopted last year which stipulates that companies with indirect control over working conditions can be considered employers of contract workers. However, a federal judge blocked the rule from taking effect in March.
Despite the rollback of minimum wage and benefits requirements, Google affirmed its commitment to enforcing a supplier code of conduct ensuring safe working conditions and compliance with legal obligations.
