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Microsoft has pledged to work with the company's employee unions, rather than try to prevent their formation.
"The recent nationwide union movement -- including in the tech IT outsourcing industry -- has led us to conclude that these issues will inevitably affect more businesses," Microsoft President Brad Smith said in a statement. , possibly including our own businesses.”, “This encourages us to think positively about what is best for our employees, shareholders, customers and other stakeholders.”
Smith pointed to Microsoft's existing relationships with job boards and unions across Europe, but said the company still had "a lot to learn" when it came to working with U.S. labor organizers on workplace issues. In recent months, the company has met with "prominent labor, business and academic leaders" to discuss its strategy, he said.
A New Direction for American Technology
Thomas A. Cochan, a professor at MIT's Sloan School of Management, described Microsoft's announcement as a "bold and welcome commitment."
"This marks a shift in the instinctive response of most U.S. employers to all forms of worker organization," he said. "Today's employees want to be heard, and they want to work constructively with management to build better industrial relations. Let's hope Microsoft is the first to take this sensible approach, but not the last."
By acknowledging the right of employees to unionize, Microsoft's stance differs from other companies in the tech industry that have faced union pressure, notably Apple and Amazon. Apple has reportedly hired "anti-union" lawyers to help prevent workers at several U.S. stores from unionizing. Amazon faces union-busting charges as warehouse workers organize in recent months after winning a high-profile election victory at the JFK8 factory earlier this year.
Smith said Microsoft will not hinder organizational work within the company moving forward. "We recognize that employees have the legal right to choose whether to form or join a union," he said. "We respect this right and do not believe that our employees or other stakeholders in the company would benefit from boycotting legitimate employee participation in protected activities, including forming or joining a union."
However, in an interview with Axios on Thursday, Smith said Microsoft would not encourage employees to unionize. "Our employees will always have direct access to the company's senior leadership," he said. "They don't need to form a union to express their views."
Activision acquisition
The announcement comes as Microsoft is buying video game maker Activision Blizzard for $68.7 billion, and a handful of quality assurance staff recently voted to create the first consortium of major U.S. game studios. Someone asked what Microsoft would do with unions within its organization.
The acquisition may be one reason Microsoft is willing to engage more broadly with unions.
"It may just be a recognition that power is shifting to workers, and it's time to adjust to this new reality," Cochamp said. "It may also be because [Microsoft], in seeking approval to acquire this new business [Actvision Blizzard], did not want to risk the federal government's view of union opposition as a monopoly abuse of power."
Labor advocates get involved
The Communications Workers Association of America, a union representing a range of workers including workers in the tech and gaming industries, welcomed Microsoft's announcement, although it noted the company's rhetoric must now be acted upon.
"Across the tech and gaming industries, employees demonstrate their commitment to colleagues and the company by organizing to improve the workplace," said Sarah Steffens, CWA Treasurer.
“Microsoft’s public statement that it respects employees’ freedom to form unions is encouraging and unique among major tech companies. To truly give employees a legally protected voice in decisions affecting them and their families, these principles must be addressed actions and into Microsoft's day-to-day operations and expectations of contractors," she said.
Dennis M. Rousseau, a professor of organizational behavior and public policy at Heinz II University at Carnegie Mellon University, said a "cooperative model" of industrial relations is prevalent in Europe and is associated with higher social welfare and labor productivity.
“In order for Microsoft and other U.S. companies to be more cooperative, they need to be careful to circumvent U.S. labor laws that are based on separation of interests and adversarial relationships — but I believe it works,” she said. "My personal view is that businesses get their due labor relations based on the treatment and respect they treat their workers."
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