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Microsoft calls for paid leave for suppliers' employees

Mike Snider
USA TODAY
Microsoft General Counsel and Executive Vice President Brad Smith speaks during the question and answer session of the Microsoft Shareholders Meeting December 3, 2014 in Bellevue, Washington.

Microsoft is asking its suppliers to establish minimum paid leave standards of at least 15 days each year.

The move is another sign that tech giants are acknowledging income disparities in their immediate region and beyond.

"Over the past year there has been increasing debate about income inequality and the challenges facing working people and families," writes Brad Smith, Microsoft general counsel and executive vice president of legal and corporate affairs, in a blog post Thursday. "While this is often discussed as a general topic, at times individuals have raised pertinent questions for companies in the tech sector, including Microsoft. This has led us to step back and think anew about the types of benefits policies we want to have with our suppliers."

Many of Microsoft's suppliers — including about 2,000 in the U.S. — already offer "strong benefits packages for their employees, including paid time off," Smith said.

But over the next year, Microsoft will work with its suppliers to ensure that those with 50 or more employees will offer eligible ones (worked more than nine months or 1,500 hours) a minimum of 15 days of paid days off annually — with 10 days of paid vacation and five days of paid sick leave or 15 days of unrestricted paid time off.

Since the move may increase costs for suppliers, Microsoft will "work with them to implement these changes over the next twelve months," Smith said. "We appreciate that this may ultimately result in increased costs for Microsoft, and we'll put a process in place for addressing these issues with our suppliers."

Other recent examples of tech companies addressing inequality include Apple boosting the pay of the shuttle drivers that ferry its workers to and from work. The drivers are employees of transportation companies that Apple contracts with for the service.

Similarly, Apple also began hiring security staff that patrols its campus. The hiring of those former contract employees gains them the benefits and perks of all Apple employees. Google made a similar move last October.

Follow Mike Snider on Twitter: @MikeSnider

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