In the newest instance of Alphabet (NASDAQ: GOOGL) showcasing the law with its workers. The firm let go of one of them and laid off two more workers for breaching Google policies.
Owners of Google’s stock should take this new happening in a serious manner since if the firm doesn’t extend a piece offer to its workers, a palace coup isn’t out of the equation.
Here’s the explanation
Labor-connected advocacy isn’t new at this place. Over 20K Google employees walked out of work last November to protest the firm’s treatment of claims of sexual assault.
Many businesses are seeing growing tensions
Amazon (NASDAQ: AMZN) saw half a dozen employee’ organizations set up to advocate for the interests of rank-and-file staff, as well as climate change and various topics connected to worker activism.
Bobby Gordon, a finance manager in Seattle who is part of the climate group, explained that workers at Amazon have high standards for their employers since they have high employee standards. He highlighted that they are interested in associating with similar groups, too.
Activism among workers is not a bad thing if handled with transparency. Amazon released an 11-point list with topics they claim are important to the company’s ideology to lessen the workforce’s tension.
Google needs to do the same thing, or their problems will grow. And no matter how smart their employers are, they won’t be good for Google’s stock if they are angry.
Elections Coming Soon
Google workers hear loud and clear what Elizabeth Warren and Bernie Sanders are preaching. With elections coming in November 2020, things are heating up. From donations Google workers made to political causes in 2019, over 55 percent went to the above-mentioned candidates, while Trump got a mere 1.4 percent. This will cause them to be braver in speaking out.
From an investor’s point of view, this seems non-connected to the issue of investing in firms that have continuous profits.
Google stock owners don’t want to deal with it. Still, if some of the two left-leaning candidates end up on the Democratic ballot, the firm could break up.
The breakup of Alphabet wasn’t a huge thing, though. This would probably benefit Google’s stock, actually.
Still, stock investors would suffer if the firm’s leader’s ignored the workers’ dissatisfaction. It seems sentiment is moving in that way. Worker’s demanded that the leadership of the firm elects a worker representative on Google’s board. In May, CtW Investment Group, an organization that is partnered with union-backed pension funds, released a 5-page announcement to Alphabet shareholders asking them to approve Proposal 11 at the firm’s yearly meeting in June.
The proposal echoed the push for an employee representative on the board. In turn, the board asked shareholders to vote against this – and so over 98 percent of them actually did reject it.
Since the upcoming election is making the leadership on the board, feel the heat.
One worker said that they were a newcomer and told the firm prides itself on the transparency policy. Yet, the employer said it seems as the company abandoned this philosophy, which scares the workers.
Alphabet is awesome to own as a stock. But, if tensions carry on, a coup could be on the horizon, and it would affect GOOGL stock negatively for sure, be those the regular stocks or the more-restricted ones.