Amid Government Squabbling, Companies Step Up To Promote Workers’ Rights

This morning, Microsoft threw a surprising twist into the push for employee benefits.

Just a day after President Obama announced that senior officials would begin traveling around the country to promote paid leave for all workers, Microsoft announced that it soon will require companies who “do business with Microsoft in the U.S. provide their employees who handle [Microsoft] work with at least 15 days of paid leave each year.”

Microsoft currently employs approximately 2,000 contractors and vendors who provide services ranging from janitorial work to translation and would benefit from the new rule.

Microsoft is the first large company to announce such a change following Labor Secretary Tom Perez’ announcement yesterday that he would be travelling to Seattle to work with employers to discuss “how flexible workplace policies can help support families and businesses.”

According to Perez, only 12 percent of private sector workers have access to paid sick leave.

While some state and local governments have passed laws requiring employers to give paid sick days, the federal government has not passed any such measure.

Brad Smith, Microsoft’s general counsel, said that providing paid time off for contract employees would ultimately contribute to a “happier and more productive workforce.” Microsoft’s steps mirror a small contingent of major private employers who are setting the tone for workers’ rights, regardless of federal intervention.

The major retail chain Costco, like Microsoft, relies on a small army of part-time workers and contractors to supplement its full-time staff. Those employees, who compose about four percent of Costco’s total workforce, still enjoy above-average pay and benefits.

The company, whose practices have reduced employee turnover to an unusually low 17 percent, has continued to enjoy profits of $457 million, even as its lower-paying competitor, Sam’s Club, has been forced to lay off thousands of workers.

As the White House gears up for a workers rights fight, bookended by the President’s January State of the Union address on one side and a looming presidential election on the other, it’s a relief to see private enterprises taking matters into their own hands. After all, it’s hard to draw a partisan line on profit.