“Not an employer” – Google abolishes minimum wage for suppliers


The technology company Google is abolishing the minimum wage for suppliers and temporary employment companies. “These updates align us with other major companies and simply clarify that Google is not and has never been the employer of our suppliers’ employees,” a company spokesperson said Friday.

Since 2019, they have to pay their employees at least $15 (equivalent to €14.05) per hour and offer them health insurance and other benefits. This move could allow the company to avoid potential negotiations with unions. However, Google emphasized on Friday that it continues to adhere to a code of conduct for suppliers that ensures safe working conditions and adheres to legal obligations.

Statement: “Co-employer”
Before this decision was announced, a ruling had already been made by the American labor relations authority NLRB, which classified Google as a so-called ‘co-employer’ of temporary workers from the personnel services provider Cognizant Technology Solutions. The argument: the company could control the workforce even though they were not directly employed. That is why the company should also negotiate with the Cognizant union.

The technology group appealed this decision. According to a company spokesperson, most suppliers operate in states that require a minimum wage of at least $15.

Source: Krone


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