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February 23, 2000
Microsoft to Limit Terms of Temporary Workers
Mic
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rosoft Corp announced that it will begin limiting the term of its temporary workforce. The policy change may affect up to 1,500 of its workforce who are referred to as "permatemps".

This labor segment is comprised of temporary workers who stay in the same job for more than a year's time without receiving the benefits that are extended to the permanent workforce.

Criticism of this practice by labor unions & lawsuit plaintiffs accounts for the decision. Twice Microsoft has been challenged in court by long-term temporary workers who wanted the benefits offered to permanent workers.

One case, lost by Microsoft, granted the temporary workers the right to purchase Microsoft stock at a 15% discount. The second suit that seeks medical & retirement benefits is still pending. The new policy limits temporary workers to a one year term at a time with 100-day intervals in between.

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