The National Labor Relations Board has ruled that Google's refusal to negotiate with a group of unionized YouTube Music contractors was unlawful. The three-person panel ruled that, despite denials from both Google, which owns YouTube Music, and its subcontractor Cognizant, the two companies were, in fact, joint employers of Austin workers who did data-related tasks such as finding errors in charting algorithms.
"At all material times, defendants Cognizant and Google jointly determined the basic terms and conditions of employment at the E. Parmer Lane facility and were joint employers," the committee wrote in its ruling.
Google's dispute with YouTube Music contractors began last year when 40 workers employed by Cognizant voted to join the Alphabet workers union. Their main concern is that YouTube Music requires these hourly employees to return to their offices in Austin, Texas, rather than work remotely. These contractors, who earn wages as low as $19 an hour and include many employees hired remotely, argue that the added cost of child care and transportation means returning to the office is simply not feasible.
It's a situation all too familiar to Alphabet's Google. Back in November, the NLRB made a similar ruling against a group of Bard and Search contractors who voted to unionize, naming Google and Accenture as joint employers. Google chose to appeal the NLRB's ruling at the time, and it appears to be the case now: According to Bloomberg, the company plans to appeal the ruling in federal court.
A new National Labor Relations Board rule takes effect in December that will make it harder for companies like Google to argue that they are not responsible for handling union work by third-party contractors. The rule replaces Trump-era rules on joint employers, effectively making it easier for unions to organize contract and franchise workers -- much to the chagrin of Big Tech companies that have increasingly relied on unions.
Under the new ruling, companies like Google or Amazon will be considered joint employers of contract workers if they have control over working conditions such as pay, scheduling, discipline, etc.