Google told employees at a virtual joint meeting on Tuesday that it would not adjust workers ’salaries in line with inflation. In other words, Google’s rank and file will actually earn less, even as the company progresses, achieving record profits for five consecutive quarters.
According to the audio shared with , CEO Sundar Pichai read a question from his staff regarding the rising costs of almost everything and the decision of some companies to compensate for these difficulties by a proportional increase in salaries. Compensation vice president Frank Wagner reportedly replied that: “As I mentioned in other meetings, when we see rising price inflation, we also see an increase in labor costs or market wage rates” and that “they have been higher than in the recent the past and our fee budgets reflect that. ”
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Raises of this kind are fairly standard for many companies and are commonly referred to as “cost-of-living adjustments”. Wagner, however, argued that any potential wage increase should reflect “performance” instead of a smaller but more widely implemented increase.
Google has shown a willingness to adjust benefits related to the reality of the pandemic: by cutting wages for workers who choose to stay away in locations with lower living costs. In some cases, these wage cuts have been estimated at as much as 25%. .
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