HR Faces the Possibility of Unions in Silicon Valley

As a job hunt coach and business consultant, I've seen a lot of changes in the workplace from both ends of the corporate ladder. One trend that seems inevitable to me is the rise of unions in Silicon Valley.

Yep, you heard me: unions. It might sound like a dirty word in tech circles, but with the climate of layoffs to save companies’ bottom lines combined with the increased use of independent contractors, it feels like the industry is speeding toward an iceberg too fast to avoid it.

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So, rather than fighting the tide, it would be more beneficial for HR professionals to lean into it. If tech companies are willing to open their minds, unions can actually bring a lot of benefits in a variety of ways. We can see proof of this not just from modern examples like the newspaper industry, but from the very inception of unions during the Industrial Revolution.

Labor Movement in the Industrial Revolution

We might not appreciate how industrialization radically changed work culture in the mid-1800s. Suddenly, skilled artisans who previously worked for themselves, able to control their own work processes and set their own prices, couldn’t compete with factories. Artisans in trades like shoemaking, printing, and metalworking began working in factories and mills to earn a living, which often came with harsh working conditions and low wages.

They formed trade unions to protect their rights, improve their environments and employment terms, and increase job security. This allowed them to collectively bargain with their employers, who would not have relented on any of those fronts for individual requests.

Similarly, many tech workers today work in highly skilled roles with a great deal of autonomy and control over their work. However, with the increasing demands of the industry and the rise of gig economy work, they are facing a lot the same issues, such as overwork, job insecurity, and lack of input into company decisions.

Today, the rise of automation and increasing demand for highly skilled workers in the tech industry has created a new kind of artisan, who is just as vulnerable to exploitation and unfair treatment as the skilled artisans of the past. Thanks to the rapid, widespread sharing of information like TikTok, tech workers today have the potential to create positive change by coming together and advocating for their needs and concerns.

Newspaper Industry

A more modern example of what we could see happen in Silicon Valley is the newspaper industry.

When the newspaper industry began to decline in the ‘90s and ‘00s, many newspapers were forced to lay off workers and cut back on benefits. The industry faced layoffs, furloughs, and pay cuts. That’s when unions stepped in to represent workers and negotiate better working conditions. By banding together, newspaper employees were able to secure better wages, benefits, and increased job security.

You could argue the tech industry is facing a similar crisis, especially as technology becomes more automated. But just as newspapers suffered in quality because of widespread layoffs, the tech industry will suffer, too.

By bringing stability back to the workers, unions ensure that the industry remains a source of innovation and progress, rather than a source of exploitation and inequality. Just as the Newspaper Guild helped to improve the quality of journalism, tech worker unions have the potential to help guarantee that the products and services produced by the tech industry serve the needs of society as a whole.

Google - The Union to Set the Standard

It might come as a surprise, but unions are gaining traction in Silicon Valley and one of the biggest players in the game is showing how they can improve company growth. While it’s difficult to quantify the precise impact that the unionization efforts at Google have had on the company's bottom line, there is evidence to suggest that the union's demands for better working conditions and greater transparency have had a positive impact on the company's culture and employee morale.

For example, in response to demands from the Alphabet Workers Union, Google's parent company, for greater transparency and accountability in the company's decision-making processes, Google recently announced that it would form a new employee council to provide more direct input into company policies.

By addressing the concerns of its employees and taking steps to improve its culture and working conditions, Google improved its ability to attract and retain top talent, which can in turn lead to increased productivity and innovation. Furthermore, the public support that Google has received as a result of its response to the unionization efforts could also translate into increased brand loyalty and customer satisfaction, which could ultimately boost the company's bottom line. That’s especially true of the coveted under-40 market, made up of value-driven Millennials and Gen Z consumers.

Overall, while the impact of the unionization efforts at Google may not be immediately quantifiable in terms of dollars and cents, there is evidence to suggest that these efforts have had a positive impact on the company's culture and employee morale, which could in turn translate into long-term benefits for the company's bottom line.

That’s probably more likely than we think. Research has shown that unionized workers are more productive and less likely to quit, leading to higher retention rates and lower recruitment costs. In fact, a study by the Economic Policy Institute found that workers in unionized workplaces earn higher wages and receive better benefits than their non-union counterparts.

What Can HR Do to Prepare?

So, what can HR professionals do to prepare for the inevitable unionization of Silicon Valley? It might sound simple, but start by listening to your employees. What are their concerns? What do they want to see change? Most importantly, how can you be proactive about addressing these concerns before they escalate?

Here are some steps you can take:

Build a culture of trust and transparency. Make sure your employees feel heard and valued. Encourage open communication and be transparent about the company's policies and decisions.

Invest in your employees. Provide them with opportunities for growth and development. To the best of your ability, offer competitive wages and benefits packages. At the very least, do a cost-benefits analysis on the expense of recruiting someone who will likely expect the same level of pay versus granting a raise to keep the institutional knowledge you already have. It’s all about showing them you value their contributions to the company.

Be proactive about addressing employee concerns. Conduct regular surveys to gauge employee satisfaction and identify areas for improvement. Address any issues that arise in a timely and respectful manner. And not just that, but make changes when you see patterns arising in their responses.

Consider implementing a union-free committee. This committee can help identify potential issues and proactively address employee concerns before they escalate. It can also help communicate the company's commitment to its employees and ensure that the workplace remains union-free.

At the end of the day, unions are not the enemy. However, if you take these measures, you might just create a culture where unions are not necessary. Who knows? Maybe one day someone will write an article about this moment as the start of a new era in Silicon Valley—one where unions and tech companies worked together to create a better future for everyone.

Assuming the robots don’t rise up against us, that is.

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