Human Capital: Top Labor Stories of 2020

Greetings to 2021! Welcome once again to Human Capital, a weekly newsletter providing updates on the latest developments in the fields of labor, diversity, and inclusion.

Given a relatively quiet week, I thought it would be a good opportunity to revisit some of the most significant labor-related events of 2020.

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Independent Contractors and the Gig Economy: Uber, Lyft, Instacart, and Others

In California, Proposition 22, supported by gig economy companies such as Uber, Lyft, and DoorDash, was approved, establishing that gig workers would be classified as independent contractors. This important measure saw the supporting side invest over $200 million in its campaign. However, the debate continues, as detailed here. 

Challenges Faced by Amazon

Throughout the year, Amazon encountered several labor-related issues, frequently involving its warehouse staff and monitoring practices. 

For instance, Christian Smalls, a former Amazon warehouse employee, was terminated in March after organizing a walkout at a company fulfillment center in Staten Island. Subsequently, the New York State Attorney General launched an investigation to determine if Amazon violated federal worker safety regulations and New York’s whistleblower protection laws through the dismissal of Mr. Smalls.

Mr. Smalls’s termination spurred other warehouse workers to form an international organization dedicated to advocating for improvements within Amazon’s warehouses. A key motivator for establishing Amazon Workers International was reported to be concerns about worker retaliation. Simultaneously, Amazon leadership allegedly discussed strategies to discredit Mr. Smalls and position him as the central figure in the organizing efforts.

An Amazon representative previously stated to TechCrunch that the company did not terminate Mr. Smalls due to his involvement in organizing a protest, but rather for “jeopardizing the health and safety of others and violating his employment terms.”

In November, Mr. Smalls initiated legal action against Amazon, alleging the company’s failure to provide adequate personal protective equipment (PPE) to its workforce.

Unionization Efforts in the Tech Sector

Kickstarter and Glitch were among the first technology companies to see their workforces unionize. In February, Kickstarter employees voted in favor of unionization. A month later, employees at Glitch also voted to unionize.

By September, at least ten additional tech companies were actively exploring union formation, according to Grace Reckers, the lead northeast union organizer for OPEIU, as she informed TechCrunch at the time.

“Employees are realizing they lack genuine control over how the products they create are utilized,” she explained. “Despite the prevalent messaging in Silicon Valley emphasizing the creation of a better world, increased convenience, and innovation, it operates under a ‘move fast and break things’ philosophy.”

Note: My partner is employed at Glitch and participates on the union’s bargaining committee.

Pinterest Under Examination

Ifeoma Ozoma and Aerica Shimizu Banks, two former Pinterest employees, publicly discussed instances of racial and gender discrimination within the company. Soon after, Pinterest’s former COO, Francoise Brougher, filed a lawsuit against the company alleging gender discrimination. Pinterest reached a settlement in the lawsuit for $22.5 million.

However, Ozoma and Banks conveyed to me a disparity in their experiences compared to Brougher’s. While Brougher received a $20 million settlement, Ozoma and Banks received less than one year’s worth of severance pay.

“This aligns with a longstanding pattern in the United States where Black women pioneer change, expose injustice, and then white women benefit from their efforts,” Banks stated.

The Departure of Dr. Timnit Gebru from Google

Dr. Timnit Gebru, a leading AI researcher, reported being terminated from Google after sending an email to her team expressing her disappointment with the organization’s approach to DEI and the approval process for her research paper. Dr. Gebru sent this email following Google’s decision not to authorize the inclusion of her and her colleagues’ names on an AI ethics paper concerning language models. Previously, Dr. Gebru had communicated to her superiors that she would consider leaving if her specific conditions were not met. Google responded by informing her that they accepted her resignation and revoked her access to her work email. 

In December, Google CEO Sundar Pichai announced a review of the circumstances surrounding Dr. Gebru’s departure. In his memo, Mr. Pichai acknowledged the company’s responsibility for the “unhappy” exit of a “prominent Black, female leader with immense talent.” He also highlighted the “ripple effect” this had on underrepresented communities within Google.

Alexis Ohanian’s Commitment to Diversity

Alexis Ohanian, co-founder of Reddit, resigned from the company’s board of directors, requesting that Reddit replace him with a Black individual. Reddit followed Mr. Ohanian’s suggestion and appointed Michael Seibel, CEO of Y Combinator.

Difficulties at The Wing

The Wing experienced significant turmoil following accusations of racism and other forms of discrimination. As a result, its CEO, Audrey Gelman, resigned and later issued an apology for her lack of action. 

In a message to former employees, Ms. Gelman apologized for failing to address the mistreatment of women of color at The Wing. She also admitted that her focus on rapid growth and success “came at the cost of a healthy and sustainable culture that aligned with our stated values, and workplace practices that made our team feel valued and respected.”

Ms. Gelman explained that, as a consequence, The Wing “did not dismantle the historical oppression and racist foundations of the hospitality industry; it merely presented a more approachable, gentler facade.”

TechCrunch Sessions: Justice on the Horizon

TC Sessions: Justice will be available online this March. Attendees will have the opportunity to hear from individuals such as Arlan Hamilton of Backstage Capital, Vanessa Bain of the Gig Workers Collective, Christian Smalls, and others.

Tickets are currently available for $5.