Google faces new labor board complaint over contractor union bargaining

The US National Labor Relations Board (NLRB) has filed a fresh complaint against Google, alleging that the company acts as the employer of certain contract workers and must negotiate with their union, Reuters reports.

The Board has said Google is a “joint employer” for roughly 50 San Francisco-based content creators hired through IT contractor Accenture Flex.

These workers, who joined the Alphabet Workers Union in 2023, should be considered under the tech giant’s purview, according to the agency, the report said.

An administrative judge will now hear the complaint, with the decision subject to review by the NLRB’s five-member panel.

If the Board confirms Google’s status as a joint employer for the Accenture Flex contractors, the tech giant would be compelled to engage in collective bargaining and could be held accountable for breaches of federal labor law.

NLRB is also looking into a separate complaint from October, which accuses Google and Accenture Flex of altering working conditions without consulting the union first, according to the report.

This follows the NLRB’s January 2024 ruling requiring Google to negotiate with employees at YouTube Music — an Alphabet subsidiary — hired through a different staffing firm. Google has appealed the decision, and a US federal court is scheduled to review the case later this month.

Google has faced growing labor challenges, marked by worker protests and layoffs. Last year, the company removed a $15-an-hour minimum wage for contractors and implemented changes aimed at sidestepping union negotiations.

Implications for the industry

Google has stated that it does not have sufficient control over contract workers to qualify as their joint employer, according to the report.

The outcome of the case could set a precedent for how contract workers are treated across the tech industry, where companies frequently rely on third-party staffing firms.

“Companies may need to rethink their mix of employment types and how they engage contract and gig workers,” said Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research. “In a worst-case scenario, this work could be moved to locations where such regulations don’t exist. Alternatively, companies might face additional compliance requirements, costs, and audits if the NLRB wins against major corporations.”

Meanwhile, large corporations may need to adopt a more flexible stance on the issue, as the number of contract and gig workers is expected to grow, Gogia added.

A decision against Google could also energize unionization efforts within the tech sector, offering a roadmap for organizing workers in an industry that has traditionally resisted union activity. “The topic is also profoundly interlinked with the country’s political climate,” Gogia said. “If one were to consider the past stand that the Trump administration had on the subject, it is clear that the concept of joint employer may not see the light of day after all.”