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    Tech Workers Who Swore Off the Bay Area Are Coming Back

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    SAN FRANCISCO — Last year, Greg Osuri decided he’d had enough of the Bay Area. Between smoke-choked air from nearby wildfires and the coronavirus lockdown, it felt as if the walls of his apartment in San Francisco’s Twin Peaks neighborhood were closing in on him.“It was just a hellhole living here,” said Mr. Osuri, 38, the founder and chief executive of a cloud-computing company called Akash Network. He decamped for his sister’s roomy townhouse in the suburbs of Columbus, Ohio, joining an exodus of technology workers from the crowded Bay Area.But by March, Mr. Osuri was itching to return. He missed the serendipity of city life: meeting new people, running into acquaintances on the street and getting drinks with colleagues. “The city is full of that — opportunities that you may never have expected would come your way,” Mr. Osuri said. He moved back to San Francisco in April.The pandemic was supposed to lead to a great tech diaspora. Freed of their offices and after-work klatches, the Bay Area’s tech workers were said to be roaming America, searching for a better life in cities like Miami and Austin, Texas — where the weather is warmer, the homes are cheaper and state income taxes don’t exist.But dire warnings over the past year that tech was done with the Bay Area because of a high cost of living, homelessness, crowding and crime are looking overheated. Mr. Osuri is one of a growing number of industry workers already trickling back as a healthy local rate of coronavirus vaccinations makes fall return-to-office dates for many companies look likely.“I think people were pretty noisy about quitting the Bay Area,” said Eric Bahn, a co-founder of an early-stage Palo Alto, Calif., investment firm, Hustle Fund. “But they’ve been very quiet in admitting they want to move back.”Bumper-to-bumper traffic has returned to the region’s bridges and freeways. Tech commuter buses are reappearing on the roads. Rents are spiking, especially in San Francisco neighborhoods where tech employees often live.Twitter reopened its headquarters in San Francisco on Monday. The company plans to open more offices in the Bay Area.Cayce Clifford for The New York TimesAnd on Monday, Twitter reopened its office, becoming one of the first big tech companies to welcome more than skeleton crews of employees back to the workplace. Twitter employees wearing backpacks and puffy jackets on a cold San Francisco summer morning greeted old friends and explored a space redesigned to accommodate social-distancing measures.London Breed, San Francisco’s mayor, said she welcomed the return of tech workers, though she acknowledged that it also brought challenges. “Yes, we need to do the work to build more housing and address the many challenges that big cities face, but San Francisco is successful when we have a growing economy, and that includes tech,” she said in a statement.No one is quite ready to declare that things have returned to normal. Ridership on Bay Area Rapid Transit remains low, and nearly half of San Francisco’s small businesses are still closed. Office vacancy rates are high. The city’s downtown is still largely empty on weekdays.But recent data supports the notion that tech workers are coming back. In an area near San Francisco’s Financial District, where tech workers tend to cluster, average apartment rental prices dropped more than 20 percent in 2020, according to census and Zillow data compiled by the city. That area saw the biggest price jumps in the city in the first five months of 2021.In the bayside ZIP code surrounding the San Francisco Giants’ Oracle Park, where nearly 15 percent of residents worked in tech, average monthly rental prices dropped from $3,956 in February 2020 to about $3,000 a year later. They rose to $3,312 in May, according to Zillow data.“This could mean that tech workers are coming back, although it could also mean that other people, who also value those areas, are taking advantage of the lower rents to move in,” said Ted Egan, San Francisco’s chief economist.Median San Francisco home prices, which bottomed out at a still-jarring $1.58 million for a single-family home in December, recently hit $1.9 million, according to the California Association of Realtors. That’s higher than before the pandemic.Traffic this month on a highway leading toward downtown San Francisco and the Bay Bridge.Cayce Clifford for The New York TimesNearly 1.4 million cars drove across the Golden Gate Bridge into San Francisco in May, the most since February 2020, and afternoon freeway speeds have dropped to about 30 miles per hour, which was the prepandemic norm, according to city data. Some types of crime are close to prepandemic levels.Rizal Wong, a junior associate at the tech and business communications firm Sard Verbinnen and Company, left the Bay Area in December, trading a studio apartment in Oakland for a cheaper one-bedroom in his hometown, Sacramento, close to his family. But after getting vaccinated, he moved to San Francisco in April.“I felt like I was getting back to my life,” said Mr. Wong, 22. “Meeting up with co-workers who were also vaccinated and getting drinks after work, it definitely makes it feel more normal.”Mr. Wong, like many who left the Bay Area, didn’t go very far. Of the more than 170,000 people who moved from the vicinity of San Francisco, Berkeley and Oakland in 2020, the vast majority relocated elsewhere in California, according to United States Postal Service change-of-address data analyzed by CBRE, a real estate company.About 20,000 moved to the San Jose area, for example. A further 16,000 went to Los Angeles, nearly 15,000 to Sacramento and 8,000 to Stockton, in California’s Central Valley. The more than 77,000 people who left the San Jose metro area, a proxy for Silicon Valley, went to similar places: San Francisco, Sacramento and Los Angeles. In February, The San Francisco Chronicle reported similar numbers using Postal Service data.The net migration out of the San Francisco and San Jose regions — that takes into account people who moved in — was about 116,000 last year, up from about 64,000 in 2019, according to the analysis of the Postal Service data.Nearly every year for several decades, thousands more residents have left Silicon Valley and San Francisco than moved in, according to state data. Often, this movement is offset by an influx of immigrants from other countries — which was limited during the pandemic.Greg Osuri, center, and his employees meeting in their co-working space, Shack15.Cayce Clifford for The New York TimesThe majority of those who left the Bay last year, the real-estate firm’s analysis found, were young, affluent and highly educated — a demography that describes many tech workers. It’s a group that wants urban amenities like bars, restaurants and retail shopping, said Eric Willett, CBRE’s director of research.“That’s the group that left urban centers in large numbers,” he said. It is also the group “that we are increasingly seeing move back.”.css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-3btd0c{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-3btd0c{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-3btd0c strong{font-weight:600;}.css-3btd0c em{font-style:italic;}.css-w739ur{margin:0 auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}#NYT_BELOW_MAIN_CONTENT_REGION .css-w739ur{font-family:nyt-cheltenham,georgia,’times new roman’,times,serif;font-weight:700;font-size:1.375rem;line-height:1.625rem;}@media (min-width:740px){#NYT_BELOW_MAIN_CONTENT_REGION .css-w739ur{font-size:1.6875rem;line-height:1.875rem;}}@media (min-width:740px){.css-w739ur{font-size:1.25rem;line-height:1.4375rem;}}.css-9s9ecg{margin-bottom:15px;}.css-uf1ume{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;}.css-wxi1cx{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;-webkit-align-self:flex-end;-ms-flex-item-align:end;align-self:flex-end;}.css-12vbvwq{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;}@media (min-width:740px){.css-12vbvwq{padding:20px;width:100%;}}.css-12vbvwq:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-12vbvwq{border:none;padding:10px 0 0;border-top:2px solid #121212;}.css-12vbvwq[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-12vbvwq[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-12vbvwq[data-truncated] .css-5gimkt:after{content:’See more’;}.css-12vbvwq[data-truncated] .css-6mllg9{opacity:1;}.css-qjk116{margin:0 auto;overflow:hidden;}.css-qjk116 strong{font-weight:700;}.css-qjk116 em{font-style:italic;}.css-qjk116 a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;text-underline-offset:1px;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:visited{color:#326891;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:hover{-webkit-text-decoration:none;text-decoration:none;}There were some prominent industry defections from the Bay Area over the last 18 months. Oracle and Hewlett-Packard Enterprise moved their headquarters to Texas. The software maker Palantir moved its headquarters from Palo Alto to Colorado. Elon Musk, the chief executive of Tesla, said he was moving to Austin.“CA has the winning-for-too-long problem,” Mr. Musk wrote on Twitter in October. “Like a sports team with many championships, it is increasingly difficult to avoid complacency & a sense of entitlement.”Miami’s mayor, Francis X. Suarez, campaigned to lure tech workers to his city, and he was joined by some high-profile investors who said they had found a better life in South Florida. But the analysis of Postal Service data found that Austin was the 13th-most-popular destination for people leaving San Francisco. Miami was 22nd.Also not as well noticed in the exodus headlines: Oracle and HPE told most Bay Area employees that they would not need to leave.Now some companies are expanding their Bay Area footprints. Google said in March that it would spend $1 billion on California developments this year, including two office complexes in Mountain View. The company is also building a massive, mixed-use development that includes a 7.3-million-square-foot office space in San Jose. In September, Google will reopen its doors to employees. Most will come in three days a week.Twitter is also opening a 30,000-square-foot office in San Jose’s Santana Row this fall and an Oakland building next year, said Jennifer Christie, the company’s chief human resources officer.The share of Twitter’s work force in San Francisco declined to 35 percent last month, from 45 percent a year earlier, as the company grew quickly elsewhere, Ms. Christie said. But the total number of Bay Area employees is similar: about 2,200, compared with 2,300 last year.About 45 percent of employees at Twitter said they wanted to return to the office at least part time, Ms. Christie said, but she expects that number to grow. “I do think there’s a good number of people who still want to be in the San Francisco area,” she said.At Cisco Systems, a tech gear maker that is one of San Jose’s biggest employers, just 23 percent of employees want to return to the office three or more days each week. But many who prefer to work remotely will do so from nearby, said Fran Katsoudas, the company’s chief people officer. People have expressed a desire for work flexibility “more than a desire to have a different location,” she said.San Francisco’s Embarcadero, along the waterfront.Cayce Clifford for The New York TimesSome tech workers have found compromises — or at least a way to avoid long commutes. Annette Nguyen, 23, who works for Google’s ad marketing team, appreciated the outdoor space and lack of a commute when she moved from San Francisco last year to live with her parents in Irvine, Calif. She plans to return to the Bay Area in August, but will live near her office in Silicon Valley.“I couldn’t imagine spending three hours a day commuting anymore like I used to,” she said.Of course, some of the people who moved away are gone for good. Others are still in the process of leaving.Steve Wozniak, who founded Apple with Steve Jobs, said he and his wife had recently bought a house in a Denver suburb, Castle Pines, and would likely live there at least part time. He was eager, he said, to fulfill a lifelong dream of living close to the Colorado snow and away from the California crowds.“I don’t think people want to go back full time when they have the sort of job that can work well from home,” Mr. Wozniak, who currently lives in Los Gatos, Calif., said in an interview. “We’ve learned something that you really can’t take back.” More

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    ‘A Perfect Positive Storm’: Bonkers Dollars for Big Tech

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    The dictionary doesn’t have enough superlatives to describe what’s happening to the five biggest technology companies, raising uncomfortable questions for their C.E.O.s.In the Great Recession more than a decade ago, big tech companies hit a rough patch just like everyone else. Now they have become unquestioned winners of the pandemic economy.The combined yearly revenue of Amazon, Apple, Alphabet, Microsoft and Facebook is about $1.2 trillion, according to earnings reported this week, more than 25 percent higher than the figure just as the pandemic started to bite in 2020. In less than a week, those five giants make more in sales than McDonald’s does in a year.The U.S. economy is cranking back from 2020, when it contracted for the first time since the financial crisis. But for the tech giants, the pandemic hit was barely a blip. It’s a fantastic time to be a titan of U.S. technology — as long as you ignore the screaming politicians, the daily headlines about killing free speech or dodging taxes, the gripes from competitors and workers, and the too-many-to-count legal investigations and lawsuits.America’s technology superpowers aren’t making bonkers dollars in spite of the deadly coronavirus and its ripple effects through the global economy. They have grown even stronger because of the pandemic. It’s both logical and slightly nuts.The wildly successful last year also raises uncomfortable questions for tech company bosses, the public and elected officials already peeved about the industry: Is what’s good for Big Tech good for America? Or are the tech superstars winning while the rest of us are losing?Americans have more money in their pockets thanks to government stimulus checks and pandemic savings, and the tech giants are getting a significant share. Their combined revenue is equivalent to roughly 5 percent of the gross domestic product of the United States.Big Tech’s pandemic big bucks have an understandable root cause: We needed its services.People gravitated to Facebook’s apps to stay in touch and entertained, and businesses wanted to pay Facebook and Google, which Alphabet owns, to help them find customers who were stuck at home. People preferred to buy diapers and deck chairs from Amazon rather than risk their health shopping in stores. Companies loaded up on software from Microsoft as their businesses and work forces went virtual. Apple’s laptops and iPads become lifelines for office workers and schoolchildren.Before the pandemic, America’s technology superpowers were already influential in how we communicated, worked, stayed entertained and shopped. Now they are practically unavoidable. Investors have scooped up Big Tech shares in a bet that these companies are nearly invincible.“They were already on the way up and had been for the best part of a decade, and the pandemic was unique,” said Thomas Philippon, a professor of finance at New York University. “For them it was a perfect positive storm.”Times weren’t so good for these companies in the last economic rough patch. In the downturn from 2007 to 2009, Microsoft’s sales dropped slightly, and its stock price fell 60 percent from the fall of 2008 to March 2009, a low point for U.S. stocks. Google and Amazon each lost as much as two-thirds of their market value.One sign of how this time is different: Amazon’s revenue is growing much faster in 2021 than it did in 2009, when the company was one-fifteenth its current size. Sales in the first quarter rose 44 percent from a year earlier, and Amazon’s profits before taxes — which have never been exactly robust — more than doubled to $8.9 billion. Businesses are addicted to Amazon’s cloud computer services, where sales rose 32 percent, and shoppers can’t live without Amazon’s delivery. Investors love Amazon, too. The company’s stock market value has nearly doubled since the beginning of 2020 to $1.8 trillion.For the other tech giants, it’s as if their brief pandemic nosedive never happened. Advertising sales typically rise and fall with the economy. But as other types of ad spending shrank when the U.S. economy contracted last year, ad sales rose for Google and Facebook. The growth was even better for them in the first three months of this year.A year ago, analysts worried that Apple would be crippled as the pandemic gripped China, which is the hub of the company’s manufacturing operations and its most important consumer market. The fears didn’t last long. In the first three months of 2021, Apple’s revenue from selling iPhones increased at the fastest rate since 2012. Sales in mainland China, Taiwan and Hong Kong nearly doubled from a year earlier.Apple’s revenue from iPhone sales in the first three months of the year rose at the fastest pace since 2012.Agence France-Presse — Getty ImagesThe tech giants are not the only companies rallying in dark times. America’s big banks have also been on a tear. So have some younger technology companies, such as Snap and Zoom, the maker of the pandemic-favorite videoconferencing app. The crisis forced all sorts of businesses to go digital fast in ways that could help them thrive. Restaurants invested in online sales and delivery, and doctors went full bore into telemedicine.But the dictionary doesn’t have enough superlatives to describe what’s happening to the five biggest technology companies. It’s all a bit awkward, really. It’s rocket fuel for critics, including some regulators and lawmakers in Europe and the United States, who say the tech giants crowd out newcomers and leave everyone worse off.Big Tech companies say they face stiff competition that leads to better products and lower prices, but their bank statements might suggest otherwise. Facebook’s profit margins are higher now than they were before the pandemic.Some of their success is explained by the peculiarities of the pandemic economy. Some people and sectors are doing awesome, while other families are lining up at food banks and while companies like airlines are begging for cash. Unlike the stock market clobbering in the Great Recession, stock indexes in the United States have reached new highs.The tech superstars have also capitalized on this moment. Alphabet and Facebook have used the pandemic to cut back in places that matter less, such as promotional costs and travel and entertainment budgets. And the tech giants have generally increased spending in areas that extend their advantages.Alphabet is now spending more on big-ticket projects, like building computer complexes, than Exxon Mobil spends to dig oil and gas out of the ground. Amazon’s work force has expanded by more than 470,000 people since the end of 2019. That deepens the moat separating the tech superstars from everyone else.Big Tech is emerging from the pandemic lean, mean and ready for a U.S. economy expected to roar back to life in 2021. Meanwhile, there are still long lines at food banks. Some American workers who lost their jobs last year may never get them back. Housing advocates are worried that millions of people will be evicted from their homes. And being Big Tech is an invitation for everyone to hate you — but you do have towering piles of money. More

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    Google Aims to Be the Anti-Amazon of E-Commerce. It Has a Long Way to Go.

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    Google presents itself to independent sellers as cheaper and less restrictive. But it is not clear whether it can change people’s habits of going straight to Amazon.OAKLAND, Calif. — Google tried to copy Amazon’s playbook to become the shopping hub of the internet, with little success. Now it is trying something different: the anti-Amazon strategy.Google is trying to present itself as a cheaper and less restrictive option for independent sellers. And it is focused on driving traffic to sellers’ sites, not selling its own version of products, as Amazon does.In the last year, Google eliminated fees for merchants and allowed sellers to list their wares in its search results for free. It is also trying to make it easier for small, independent shops to upload their inventory of products to appear in search results and buy ads on Google by teaming up with Shopify, which powers online stores for 1.7 million merchants who sell directly to consumers.But like Google’s many attempts during its two-decade quest to compete with Amazon, this one shows little sign of working. Google has nothing as alluring as the $295 billion that passed through Amazon’s third-party marketplace in 2020. The amount of goods people buy on Google is “very small” by comparison — probably around $1 billion, said Juozas Kaziukenas, the founder of Marketplace Pulse, a research company.Amazon is a fixture in the lives of many Americans. It has usurped Google as the starting point for shoppers and has become equally essential for marketers. Amazon’s global advertising business grew 30 percent to $17.6 billion in 2020, trailing only Google and Facebook in the United States.But as the pandemic has forced many stores to go online, it has created a new opening for Google to woo sellers who feel uneasy about building their businesses on Amazon.Christina Stang, 33, opened Fritzy’s Roller Skate Shop near Pacific Beach in San Diego last March. Shelter-in-place orders forced her to set up an online storefront on Shopify.She got lucky. She was sitting on a huge supply of skates when demand surged as skating videos became popular on TikTok during the pandemic.Christina Stang, the owner of Fritzy’s, avoided selling on Amazon because of its fees, but now Google has suspended her account because of a discrepancy in shipping costs.John Francis Peters for The New York TimesShe linked her Shopify account to Google’s retail software and started buying so-called smart shopping ads. Working within an allotted budget, Google’s algorithms pick where to place ads and what products to feature. In 2020, she spent $1,800 on the ads, which were viewed 3.6 million times and led to $247,000 in sales, she said.She considered selling her products on Amazon’s marketplace, but she worried what Amazon’s fees would mean for her already-thin profit margins. She also liked that Google redirected people to her carefully curated website rather than keeping them inside its own store, as Amazon does.“I could sell on Amazon and not make any real money but have a bigger online presence,” Ms. Stang said. “It didn’t seem like a great idea.”Recently, however, she has experienced one of the drawbacks of being stuck in the middle of the partnership between Google and Shopify. Her shop has been unable to list any products since January because Google suspended her account. It said her shipping costs appeared more expensive on Google than on her Shopify-powered website, even though they were no different.Shopify told her that it was a Google issue. Google’s customer service representatives recommended that she hire a web designer. She continues to manage without Google, but it has tainted her largely positive experience.“This has completely cut me off at the knees,” she said. “I’m a small business, and I don’t have hundreds or thousands of dollars to resolve this.”Sellers often complain about Amazon’s fees, which can account for a quarter of every sale, not including the cost of advertising, and the pressure to spend more to succeed. Merchants on Amazon do not have a direct relationship with their customers, limiting their ability to communicate with them and to generate future business. And because everything is contained within the Amazon world, it is harder to create a unique look and feel that express a brand’s identity the way companies can on their own websites.But since 2002, when it started a price comparison site called Froogle, a confusing play on the word “frugal” that required a rebranding five years later, Google has struggled to chart a cohesive vision for its shopping experience.It tried to challenge Amazon directly by piloting its own same-day delivery service, but it shuttered the project as costs ballooned. It tried to forge partnerships with traditional retail giants, only to see the alliances wilt from a lack of sales. It built its own marketplace to make it easier for shoppers to buy the things they find on Google, but was not able to break consumers from their Amazon habit.Last year, Google brought in Bill Ready, a former chief operating officer at PayPal, to fill a new senior position and spearhead an overhaul of its shopping strategy.Around the time of his hiring, Sundar Pichai, Google’s chief executive, warned senior executives that the new approach could mean a short-term crimp in advertising revenue, according to two people familiar with the conversations, who requested anonymity because they were not allowed to discuss them publicly. He asked teams to support the e-commerce push because it was a company priority.When the pandemic spurred huge demand for online shopping, Google eliminated fees, allowing retailers to list products for free and walking back a 2012 decision to allow only advertisers to display goods on its shopping site.Three months after hiring Mr. Ready, Google said the free listings would show up on its main search results. Then Google said customers could buy products directly from merchants on Google with no commissions. It also said Google would open its platform to third parties like Shopify and PayPal so that sellers could continue to use their existing tools to manage inventory and orders and processing payments.Google brought in Bill Ready to spearhead an overhaul of its shopping strategy.Kendrick Brinson for The New York TimesThe partnership with Shopify was especially meaningful because hundreds of thousands of small businesses have flocked to the software platform during the pandemic. About 9 percent of U.S. online shopping sales took place on storefronts powered by Shopify as of October, according to research firm eMarketer. That was up from 6 percent the prior year and second only to Amazon’s share of 37 percent.Harley Finkelstein, Shopify’s president, said Google and Shopify were developing new ways for merchants to sell through Google services, such as experiments to allow customers to buy items directly on YouTube and to display what products stores are carrying in Google Maps.Mr. Ready walked a fine line when it came to Amazon, which is a big buyer of ads on Google, but he made it clear he believed Amazon’s dominance in e-commerce posed a threat to other merchants.“Nobody wants to live in a world where there is only one place to buy something, and retailers don’t want to be dependent on gatekeepers,” he said in an interview.Google said it had increased the number of sellers appearing in its results by 80 percent in 2020, with the most significant growth coming from small and midsize businesses. And existing retailers are listing more products.Overstock.com, a seller of discount furniture and home bedding, said it had paid to list products on Google in the past. But now that listings are free, Overstock is adding low-margin products, too.“When all shopping starts and stops at Amazon, that’s bad for the industry,” said Jonathan E. Johnson, Overstock’s chief executive. “It’s nice to have another 800-pound tech gorilla in this space.”What remains unclear is whether increasing the number of merchants and listings on Google will ultimately change online shopping habits.BACtrack, a maker of breathalyzers, has more than doubled its advertising spending on Amazon in the last two years because that is where the customers are, it said, while it has spent 6 percent less advertising its products on Google.“It seems like more and more people are skipping Google and going straight to Amazon,” said Keith Nothacker, the chief executive of BACtrack. More

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    Hundreds of Google Employees Unionize, Culminating Years of Activism

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    #masthead-section-label, #masthead-bar-one { display: none }Artificial IntelligenceThe Bot That WritesAre These People Real?Algorithms Against SuicideRobots Without BiasAdvertisementContinue reading the main storySupported byContinue reading the main storyHundreds of Google Employees Unionize, Culminating Years of ActivismThe creation of the union, a rarity in Silicon Valley, follows years of increasing outspokenness by Google workers. Executives have struggled to handle the change.Chewy Shaw, an engineer at Google, at a video meeting with other members of the union’s leadership council. He said a union would keep pressure on management.Credit…Damien Maloney for The New York TimesJan. 4, 2021, 6:00 a.m. ETOAKLAND, Calif. — More than 225 Google engineers and other workers have formed a union, the group revealed on Monday, capping years of growing activism at one of the world’s largest companies and presenting a rare beachhead for labor organizers in staunchly anti-union Silicon Valley.The union’s creation is highly unusual for the tech industry, which has long resisted efforts to organize its largely white-collar work force. It follows increasing demands by employees at Google for policy overhauls on pay, harassment and ethics, and is likely to escalate tensions with top leadership.The new union, called the Alphabet Workers Union after Google’s parent company, Alphabet, was organized in secret for the better part of a year and elected its leadership last month. The group is affiliated with the Communications Workers of America, a union that represents workers in telecommunications and media in the United States and Canada.But unlike a traditional union, which demands that an employer come to the bargaining table to agree on a contract, the Alphabet Workers Union is a so-called minority union that represents a fraction of the company’s more than 260,000 full-time employees and contractors. Workers said it was primarily an effort to give structure and longevity to activism at Google, rather than to negotiate for a contract.Chewy Shaw, an engineer at Google in the San Francisco Bay Area and the vice chair of the union’s leadership council, said the union was a necessary tool to sustain pressure on management so that workers could force changes on workplace issues.“Our goals go beyond the workplace questions of, ‘Are people getting paid enough?’ Our issues are going much broader,” he said. “It is a time where a union is an answer to these problems.”In response, Kara Silverstein, Google’s director of people operations, said: “We’ve always worked hard to create a supportive and rewarding workplace for our work force. Of course, our employees have protected labor rights that we support. But as we’ve always done, we’ll continue engaging directly with all our employees.”The new union is the clearest sign of how thoroughly employee activism has swept through Silicon Valley over the past few years. While software engineers and other tech workers largely kept quiet in the past on societal and political issues, employees at Amazon, Salesforce, Pinterest and others have become more vocal on matters like diversity, pay discrimination and sexual harassment.“Our goals go beyond the workplace questions of, ‘Are people getting paid enough?’” Mr. Shaw said.Credit…Damien Maloney for The New York TimesTimnit Gebru, an artificial intelligence researcher, said Google fired her after she criticized biases in A.I. systems.Credit…Cody O’Loughlin for The New York TimesNowhere have those voices been louder than at Google. In 2018, more than 20,000 employees staged a walkout to protest how the company handled sexual harassment. Others have opposed business decisions that they deemed unethical, such as developing artificial intelligence for the Defense Department and providing technology to U.S. Customs and Border Protection.Even so, unions have not previously gained traction in Silicon Valley. Many tech workers shunned them, arguing that labor groups were focused on issues like wages — not a top concern in the high-earning industry — and were not equipped to address their concerns about ethics and the role of technology in society. Labor organizers also found it difficult to corral the tech companies’ huge workforces, which are scattered around the globe.Only a few small union drives have succeeded in tech in the past. Workers at the crowdfunding site Kickstarter and at the app development platform Glitch won union campaigns last year, and a small group of contractors at a Google office in Pittsburgh unionized in 2019. Thousands of employees at an Amazon warehouse in Alabama are also set to vote on a union in the coming months.“There are those who would want you to believe that organizing in the tech industry is completely impossible,” Sara Steffens, C.W.A.’s secretary-treasurer, said of the new Google union. “If you don’t have unions in the tech industry, what does that mean for our country? That’s one reason, from C.W.A.’s point of view, that we see this as a priority.”Veena Dubal, a law professor at the University of California, Hastings College of the Law, said the Google union was a “powerful experiment” because it brought unionization into a major tech company and skirted barriers that have prevented such organizing.“If it grows — which Google will do everything they can to prevent — it could have huge impacts not just for the workers, but for the broader issues that we are all thinking about in terms of tech power in society,” she said.The union is likely to ratchet up tensions between Google engineers, who work on autonomous cars, artificial intelligence and internet search, and the company’s management. Sundar Pichai, Google’s chief executive, and other executives have tried to come to grips with an increasingly activist work force — but have made missteps.Last month, federal officials said Google had wrongly fired two employees who protested its work with immigration authorities in 2019. Timnit Gebru, a Black woman who is a respected artificial intelligence researcher, also said last month that Google fired her after she criticized the company’s approach to minority hiring and the biases built into A.I. systems. Her departure set off a storm of criticism about Google’s treatment of minority employees.“These companies find it a bone in their throat to even have a small group of people who say, ‘We work at Google and have another point of view,’” said Nelson Lichtenstein, the director of the Center for the Study of Work, Labor and Democracy at the University of California, Santa Barbara. “Google might well succeed in decimating any organization that comes to the floor.”The Alphabet Workers Union, which represents employees in Silicon Valley and cities like Cambridge, Mass., and Seattle, gives protection and resources to workers who join. Those who opt to become members will contribute 1 percent of their total compensation to the union to fund its efforts.Over the past year, the C.W.A. has pushed to unionize white-collar tech workers. (The NewsGuild, a union that represents New York Times employees, is part of C.W.A.) The drive focused initially on employees at video game companies, who often work grueling hours and face layoffs.In late 2019, C.W.A. organizers began meeting with Google employees to discuss a union drive, workers who attended the meetings said. Some employees were receptive and signed cards to officially join the union last summer. In December, the Alphabet Workers Union held elections to select a seven-person executive council.But several Google employees who had previously organized petitions and protests at the company objected to the C.W.A.’s overtures. They said they declined to join because they worried that the effort had sidelined experienced organizers and played down the risks of organizing as it recruited members.Google employees staged a walkout in 2018 to protest how the company handled sexual harassment.Credit…Bebeto Matthews/Associated PressAmr Gaber, a Google software engineer who helped organize the 2018 walkout, said that C.W.A. officials were dismissive of other labor groups that had supported Google workers during a December 2019 phone call with him and others.“They are more concerned about claiming turf than the needs of the workers who were on the phone call,” Mr. Gaber said. “As a long-term labor organizer and brown man, that’s not the type of union I want to build.”The C.W.A. said it was selected by Google workers to help organize the union and had not elbowed their way in. “It’s really the workers who chose,” Ms. Steffens of C.W.A. said.Traditional unions typically enroll a majority of a work force and petition a state or federal labor board like the National Labor Relations Board to hold an election. If they win the vote, they can bargain with their employer on a contract. A minority union allows employees to organize without first winning a formal vote before the N.L.R.B.The C.W.A. has used this model to organize groups in states where it said labor laws are unfavorable, like the Texas State Employees Union and the United Campus Workers in Tennessee.The structure also gives the union the latitude to include Google contractors, who outnumber full-time workers and who would be excluded from a traditional union. Some Google employees have considered establishing a minority or solidarity union for several years, and ride-hailing drivers have formed similar groups.Although they will not be able to negotiate a contract, the Alphabet Workers Union can use other tactics to pressure Google into changing its policies, labor experts said. Minority unions often turn to public pressure campaigns and lobby legislative or regulatory bodies to influence employers.“We’re going to use every tool that we can to use our collective action to protect people who we think are being discriminated against or retaliated against,” Mr. Shaw said.Members cited the recent N.L.R.B. finding on the firing of two employees and the exit of Ms. Gebru, the prominent researcher, as reasons to broaden its membership and publicly step up its efforts.“Google is making it all the more clear why we need this now,” said Auni Ahsan, a software engineer at Google and an at-large member of the union’s executive council. “Sometimes the boss is the best organizer.”AdvertisementContinue reading the main story More