"Not an employer"

Google abolishes minimum wage for suppliers

The technology company Google is abolishing the minimum wage for suppliers and staffing companies. "These updates bring us in line with other large companies and simply clarify that Google is not, and never has been, the employer of our suppliers' employees," said a company spokesperson on Friday. 

Since 2019, these companies have had to pay their employees at least 15 dollars (the equivalent of 14.05 euros) per hour and offer them health insurance and other benefits. With this step, the company could avoid possible negotiations with trade unions. However, Google emphasized on Friday that it will continue to adhere to a code of conduct for suppliers that guarantees safe working conditions and complies with legal obligations.

Ruling: "Employer"
 Prior to the announcement of this decision, the US Labor Relations Board (NLRB) had ruled that Google was a so-called "employer" of temporary workers from the personnel service provider Cognizant Technology Solutions. The argument: the company was able to exercise control over the staff even though they were not directly employed. Therefore, the company should also have negotiated with the Cognizant union.

The technology group appealed against this decision. According to a company spokesperson, most suppliers operate in states where a minimum wage of at least 15 dollars is required.