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by cloche 1890 days ago
I know someone who works as a contractor for Google (not through Modis). It's quite odd. They had to go through a lot of Google specified training, they only work for Google, their manager is someone from Google, the computer was supplied from Google, they're doing work that is directed by Google, they receive performance feedback from Google. But at the day, they're officially employed by this vendor company. I just don't see how it can be argued that people like this are not really employed by Google. If Google doesn't need this job anymore, this staffing company isn't going to retain them. It's not like they have other clients where they can redirect the person to as far as I can tell.

Why is it that Google uses these staffing firms? I get that they don't want to provide the same benefits to lower skilled workers but then why not just have 2 sets of benefits? One for higher skilled employees and one for lower skilled employees? I suppose the other answer is when it comes to layoffs, it won't be in the news because these types of workers are not officially employed by Google.

3 comments

Yeah I think it's basically that. If push comes to shove financially you're less safe at modis then at Google. Google has few, if any, layoffs. It's a part of their brand and their value proposition to potential employees.

Plus I don't think the two tiers of benefits thing would go over as well as you think it might. Either you're in and you have their great, expensive benefits, or you're out.

Also looks nicer on the balance sheet. Basically Workers as a Service. Makes Google look much more efficient (in terms of revenue per employee) than it actually is.
There are laws against providing different tiers for some benefits (I'm pretty certain healthcare is one). So if Google were to hire them, it has to decide if its worth lowering the standard of healthcare for their six-figure engineers or giving these datacenter employees a really expensive healthcare plan.
So yet another case of the US's brain-dead healthcare system ruining everything.

We desperately need to sever the link between employers and healthcare.

I didn't know that, why do USA try to make companies take the role of a government, except that they can fire you?
They don't make anyone take the role of a government. The US government gives tax breaks for certain benefits available to all employees. If the benefits are only available to certain employees, the company loses those tax benefits.

Would it be fair for another company to get a tax deduction for paid meals, 100% employer paid healthcare just to the executives while everyone else has to pay to eat in the cafeteria and pay for their own healthcare?