By Daniel Wiessner
(Reuters) – Alphabet (NASDAQ:) Inc’s Google said on Friday it will roll back requirements that U.S. suppliers and staffing agencies pay their workers at least $15 an hour and offer health insurance and other benefits, a move that could allow the tech giant propose to avoid negotiations with the unions.
The repeal of the 2019 policy, along with other steps such as limiting temporary workers’ and suppliers’ access to internal systems, is intended to comply with changing U.S. and global labor regulations regarding temporary workers, a spokesperson for the agency said. Mountain View, California-based Google told Reuters.
“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,” the spokesperson said.
The announcement comes after the US National Labor Relations Board ruled in January that Google is a so-called “joint employer” of workers provided by staffing firm Cognizant Technology Solutions (NASDAQ:) and must negotiate with their union. Google will appeal this decision.
The board relied in part on the 2019 policy, saying it allowed Google to exercise control over workers even though it does not directly employ them.
The Labor Council has taken steps to make it harder for companies to avoid negotiations with temporary and contract workers, including passing a rule last year that says companies with indirect control over working conditions can be considered employers of contract workers. A federal judge blocked the rule from taking effect in March.
The Google spokesperson said Friday that the company will continue to enforce a supplier code of conduct that requires suppliers and staffing agencies to provide safe working conditions and meet existing legal obligations.
Most of the company’s suppliers operate in states that mandate a minimum wage of at least $15, the spokesperson said.
