Over 200 employees at Google and other of Alphabet units have formed the “Alphabet Workers Union” to better protect members from unfair labor practices, Reuters reported.
Unlike traditional labor unions, the “Alphabet Workers Union” is a “minority union” that lacks the influence to force the company into any collective negotiations over wages or other issues, according to the report.
Under US labor law, the union’s demands can be ignored by Alphabet (GOOGL) unless the union has the support of a majority of employees. The Reuters report indicated that union leaders acknowledge that widespread support is unlikely as company perks, free meals and gyms are some of the obstacles that discourage employees from unionizing against their employers.
The union will collect 1% of members’ total compensation, which will contribute towards the hiring of support staff who will empower the union to fight against Alphabet more aggressively than in the past, Reuters said.
Robert W. Baird analyst Colin Sebastian reiterated his Buy rating on Alphabet stock last week and raised his price target from $1,725 to $2,000 (15% upside potential)
Sebastian said the that strong e-commerce trends through the holiday shopping season benefitted the company, and digital-advertising visibility in 2021 is improving. He added that an expected recovery in travel, recreation and automotive ads could contribute to a long-term valuation for Alphabet of $3,000 a share.
Overall, consensus among analysts is a Strong Buy based on 26 Buys and 2 Holds. The average price target of $1,944.04 suggests upside potential of around 12% over the next 12 months.