Google’s termination of Appen contracts big ‘wake up call’ for tech workers, Alphabet Workers Union warns

At least 2000 workers in the US are expected to be hit by Google’s abrupt termination of multimillion-dollar contracts with local technology group Appen.

Appen’s multimillion-dollar contract loss should be “a wake-up call for workers” as artificial intelligence is increasingly eating into the roles of some of the tech industry’s most vulnerable, a major union has warned.

The ASX-listed data processing company “had no prior knowledge” that Google would abruptly dump its contracts over the weekend, which were responsible for $US82.8m ($125m) in revenue in 2023.

The Alphabet Workers Union has warned the decision will have a “devastating impact” including some lay-offs on at least 2000 contracted Alphabet workers across the US and Canada who had worked on Google’s Bard AI product and search engine through Appen.

The company’s global contractor base, including workers who providing ratings on Google products including YouTube, expands much further across over 170 countries.

The AWU described Google contractors as a “canary in the AI coal mine” who are often “stuck between large language models and their users”.

‍“This news should be a wake-up call for workers in the tech industry and anyone concerned about the impacts of AI on working people,” said Toni Allen, AWU executive board secretary. “As subcontractors for Google we have been a canary in the AI coal mine calling out the precarious labour conditions we face being the human workers standing between large language models and their end users.”

Alphabet Workers Union executive board secretary Toni Allen.

Appen told investors on Monday it was completely in the dark on Google’s move, and that it would “immediately adjust its strategic priorities following the notification of the Google contract termination and provide further details in its FY23 full year results on 27 February 2024”.

Ms Allen said the situation was a symptom of how tech industry workers were being treated across the board in the wake of the mass adoption and integration of AI.

“This is what AI work looks like when workers have no say in the process. It is time that the world heard our voices before this situation repeats itself far and wide,” she said.

Google ditched Appen for a new supplier who could provide a more “efficient” partnership, which is understood to be the result of a year-long review process of all of the company’s major vendors and suppliers who had worked on its search product and Bard AI product. That audit includes dozens of major suppliers world over who provide rating work for its products, including YouTube and Google Assistant.

Appen CEO Armughan Ahmad.

A spokesman for the company said: “Our decision to end the contract was made as part of our ongoing effort to evaluate and adjust many of our supplier partnerships across Alphabet to ensure our vendor operations are as efficient as possible.”

Appen shares were swiftly dumped on Monday after the company broke news of the loss to investors, sinking as low as 40 per cent not long after the market opened.

Its shares closed 17.5 per cent higher at 34c after a huge sell-off in recent days.

Originally published as Google’s termination of Appen contracts big ‘wake up call’ for tech workers, Alphabet Workers Union warns