Alphabet Inc (NASDAQ:GOOGL) Subsidiary Google Faces Pressure From Senators To Grant Full-Time Status To Contractors

Duncan Oleinic - August 6, 2019

U.S senators have called upon Google, a subsidiary of Alphabet Inc (NASDAQ:GOOGL) to grant full-time employee status to contractors that have worked for the company for more than six months.

The U.S senators want Google to start giving contract workers full employment status once they have worked for the tech company for more than six months. The pressure on the company comes after a report published by the New York Times in May, revealing that Google has more contract employees than full-time employees.

The New York Times report revealed that Google has 102,000 employees with full-time status and 121,000 contractors. The group of senators including Elizabeth Warren and Bernie Sanders have already sent a letter to Sundar Pichai, Google’s CEO, urging him to do something about the situation. The senators described the company’s overuse of contract workers as disregard of employee classifications.

“Temporary workers and independent contractors are by definition intended for short-term and non-core work, and we urge Google to end any abuse of these worker classifications and treat all Google workers equally,” the senators noted in the letter.

According to the May report, there is a significant difference between the amount that Google pays to its permanent employees and the amount paid to contract employees. GlassDoor revealed that the average annual salary that Google pays to permanent staff is about $128,000 while the average annual pay to contract workers is $90,000.

Google responds through a letter

In its response letter, Google stated that it only hires a few independent contractors when it requires highly specialized skills. The tech giant also noted that its temporary workforce only accounts for just 3% of its total employee population. Google also pointed out in the letter that being a contractual employee at the company is not a stage towards permanent employment.

Google was previously accused of not paying its contract employees for their overtime hours. An internal complaint led to the dismissal of the executives in charge of a Google Assistant project on which the contract workers were on. Google’s employees signed a letter in April to demand better treatment of contractors, vendors, and temps.

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Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

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