The press are full of stories about Google looking to reduce the pay of those who continue to work from home as the public health restrictions are lifted. This is unjust; if there’s one lesson learnt during the pandemic it’s that essential workers are under paid, but the idea of the world’s most profitable companies trying to restore/boost their profitability by reducing the wages of their workers is, while not unexpected, pretty appalling. In the UK, this may open an employer to equal pay suits.

Google claims to be a global talent company and it would surprise me if they don’t pay the market rate for the job wherever! I know that Sun Microsystems, in its last few years came to the view that the talent market was global and set up HQ offices around the world with Labs in Grenoble and St. Petersburg and a location in India. It bit them the arse when they came to close the offices, French redundancy consultation laws are a bitch … we could do with some laws like that. (In fact a game I played with my US managers and peers, was asking which country in Europe is it hardest to fire people in, and they all thought it was Germany. The answer was in fact Italy, where the comrades went on unofficial strike. Germany was 4th, after Italy, France and the Netherlands.)

Marxists argue that employers will seek to pay the minimum wage with crudely speaking a floor of the replacement cost of the labour; they also argue that all the value is created by the labour and that it’s the appropriation of surplus value is the driver of the class struggle. Classicists argue that now that labour has transformed from animal effort, there is a supply and demand for skills and experience and there is an equilibrium grate of wages. I suppose the cost to commute vs the born cost of provisioning the workplace are factors in determining replacement cost and/or the supply curve, but they are also part of a 21st century trend of dumping cost elsewhere. Let’s note that when employees work from home, Management save the cost of office space.  Here the employer is seeking to reduce wages by clawing back the employee’s travel to work costs and also make savings by reducing its office costs.

You need a Union, see also Less money for working from home? at GMB London General X58 Branch

Fair Pay!
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One thought on “Fair Pay!

  • 14th August 2021 at 5:11 pm
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    In the noughties, I was also involved in a couple of desktop consolidation projects, a solution space that Sun was too early to enter which introduced me to the economics of desk usage/ownership. This was used to push for hot desking and Sun’s solution was the smart card enabled desktop; the numbers I was quoted in the noughties make no sense today, but I thought I’d see what prices looked like in London and found these sites and produced this map.


    Each worker at home saves the employer an office desk. This is not necessarily appropriate for people in multi-occupancy households who will often not have the space for all to work from home. This chart represents 2019 desk rental rates and will exclude I.T. and telco costs.

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