TECHNOLOGY

Tech worker movements grow as threats of RTO, AI loom

December 29th, 2024

It feels like tech workers have caught very few breaks over the past several years, between ongoing mass layoffs, stagnating wages amid inflation, AI supposedly coming for jobs, and unpopular orders to return to office that, for many, threaten to disrupt work-life balance.

But in 2024, a potentially critical mass of tech workers seemed to reach a breaking point. As labor rights groups advocating for tech workers told Ars, these workers are banding together in sustained strong numbers and are either winning or appear tantalizingly close to winning better worker conditions at major tech companies, including Amazon, Apple, Google, and Microsoft.

In February, the industry-wide Tech Workers Coalition (TWC) noted that "the tech workers movement is far more expansive and impactful" than even labor rights advocates realized, noting that unionized tech workers have gone beyond early stories about Googlers marching in the streets and now "make the headlines on a daily basis."

Ike McCreery, a TWC volunteer and ex-Googler who helped found the Alphabet Workers Union, told Ars that although "it's hard to gauge numerically" how much movements have grown, "our sense is definitely that the momentum continues to build."

"It's been an exciting year," McCreery told Ars, while expressing particular enthusiasm that even "highly compensated tech workers are really seeing themselves more as workers" in these fights—which TWC "has been pushing for a long time."

In 2024, TWC broadened efforts to help workers organize industry-wide, helping everyone from gig workers to project managers build both union and non-union efforts to push for change in the workplace.

Such widespread organizing "would have been unthinkable only five years ago," TWC noted in February, and it's clear from some of 2024's biggest wins that some movements are making gains that could further propel that momentum in 2025.

Workers could also gain the upper hand if unpopular policies increase what one November study called "brain drain." That's a trend where tech companies adopting potentially alienating workplace tactics risk losing top talent at a time when key industries like AI and cybersecurity are facing severe talent shortages.

Advocates told Ars that unpopular policies have always fueled workers movements, and RTO and AI are just the latest adding fuel to the fire.

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As many workers prepare to head back to offices in 2025 where worker surveillance is only expected to intensify, they told Ars why they expect to see workers' momentum continue at some of the world's biggest tech firms.

Tech worker movements growing
In August, Apple ratified a labor contract at America's first unionized Apple Store—agreeing to a modest increase in wages, about 10 percent over three years. While small, that win came just a few weeks before the National Labor Relations Board (NLRB) determined that Amazon was a joint employer of unionized contract-based delivery drivers. And Google lost a similar fight last January when the NLRB ruled it must bargain with a union representing YouTube Music contract workers, Reuters reported.

For many workers, joining these movements helped raise wages. In September, facing mounting pressure, Amazon raised warehouse worker wages—investing $2.2 billion, its "biggest investment yet," to broadly raise base salaries for workers. And more recently, Amazon was hit with a strike during the busy holiday season, as warehouse workers hoped to further hobble the company during a clutch financial quarter to force more bargaining. (Last year, Amazon posted record-breaking $170 billion holiday quarter revenues and has said the current strike won't hurt revenues.)

Even typically union-friendly Microsoft drew worker backlash and criticism in 2024 following layoffs of 650 video game workers in September.

These mass layoffs are driving some workers to join movements. A senior director for organizing with Communications Workers of America (CWA), Tom Smith, told Ars that shortly after the 600-member Tech Guild—"the largest single certified group of tech workers" to organize at the New York Times—reached a tentative deal to increase wages "up to 8.25 percent over the length of the contract," about "460 software engineers at a video game company owned by Microsoft successfully unionized."

Smith told Ars that while workers for years have pushed for better conditions, "these large units of tech workers achieving formal recognition, building lasting organization, and winning contracts" at "a more mass scale" are maturing, following in the footsteps of unionizing Googlers and today influencing a broader swath of tech industry workers nationwide.

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From CWA's viewpoint, workers in the video game industry seem best positioned to seek major wins next, Smith suggested, likely starting with Microsoft-owned companies and eventually affecting indie game companies.

CWA, TWC, and Tech Workers Union 1010 (a group run by tech workers that's part of the Office and Professional Employees International Union) all now serve as dedicated groups supporting workers movements long-term, and that stability has helped these movements mature, McCreery told Ars. Each group plans to continue meeting workers where they are to support and help expand organizing in 2025.

Cost of RTOs may be significant, researchers warn
While layoffs likely remain the most extreme threat to tech workers broadly, a return-to-office (RTO) mandate can be just as jarring for remote tech workers who are either unable to comply or else unwilling to give up the better work-life balance that comes with no commute. Advocates told Ars that RTO policies have pushed workers to join movements, while limited research suggests that companies risk losing top talents by implementing RTO policies.

In perhaps the biggest example from 2024, when Amazon announced that it was requiring workers in-office five days a week next year, a poll on the anonymous platform where workers discuss employers, Blind, found an overwhelming majority of more than 2,000 Amazon employees were "dissatisfied."

"My morale for this job is gone..." one worker said on Blind.

Workers criticized the "non-data-driven logic" of the RTO mandate, prompting an Amazon executive to remind them that they could take their talents elsewhere if they didn't like it. Many confirmed that's exactly what they planned to do. (Amazon later announced it would be delaying RTO for many office workers after belatedly realizing there was a lack of office space.)

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Other companies mandating RTO faced similar backlash from workers, who continued to question the logic driving the decision. One February study showed that RTO mandates don't make companies any more valuable but do make workers more miserable. And last month, Brian Elliott, an executive advisor who wrote a book about the benefits of flexible teams, noted that only one in three executives thinks RTO had "even a slight positive impact on productivity."

But not every company drew a hard line the way that Amazon did. For example, Dell gave workers a choice to remain remote and accept they can never be eligible for promotions, or mark themselves as hybrid. Workers who refused the RTO said they valued their free time and admitted to looking for other job opportunities.

Very few studies have been done analyzing the true costs and benefits of RTO, a November academic study titled "Return to Office and Brain Drain" said, and so far companies aren't necessarily backing the limited findings. The researchers behind that study noted that "the only existing study" measuring how RTO impacts employee turnover showed this year that senior employees left for other companies after Microsoft’s RTO mandate, but Microsoft disputed that finding.

Seeking to build on this research, the November study tracked "over 3 million tech and finance workers’ employment histories reported on LinkedIn" and analyzed "the effect of S&P 500 firms’ return-to-office (RTO) mandates on employee turnover and hiring."

Choosing to only analyze the firms requiring five days in office, the final sample covered 54 RTO firms, including big tech companies like Amazon, Apple, and Microsoft. From that sample, researchers concluded that average employee turnover increased by 14 percent after RTO mandates at bigger firms. And since big firms typically have lower turnover, the increase in turnover is likely larger at smaller firms, the study's authors concluded.

The study also supported the conclusion that "employees with the highest skill level are more likely to leave" and found that "RTO firms take significantly longer time to fill their job vacancies after RTO mandates."

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