David Versus Goliath: Power Resources and Collective Action in the Context of Gafam's Outsourcing Practices in Portugal

Thursday, 10 July 2025: 00:00
Location: ASJE021 (Annex of the Faculty of Legal, Economic, and Social Sciences)
Oral Presentation
Franco Tomassoni TOMASSONI, CoLABOR - The Collaborative Laboratory for Labor, Employment and Social Protection, Portugal, Portugal
Sara Nunes NUNES, CoLABOR - The Collaborative Laboratory for Labor, Employment and Social Protection, Portugal
The digital transition is dominated by multinational tech companies like GAFAM, which operate outside national regulatory frameworks. The hypermobility of capital undermines nation-state sovereignty, weakening the power of workers and trade unions (Kindleberger, 1969; Reich, 1991; Silver, 2003).

In Portugal, these tech giants rely heavily on outsourcing schemes to avoid the responsibilities of direct employment, freeing them from legal burdens while reinforcing their power to impose standards through subcontracted firms that don't align with national laws and create work environments hostile to trade unions.

The power imbalance between large tech companies and workers is significant, putting unions at a disadvantage both structurally and in negotiations. However, as recalling the Polanyian analysis, there are signs of a counter-movement, with workers and trade unions mobilizing in various countries. The capacity for innovation and resistance among unions is being tested, as seen in recent strikes at Concentrix and Teleperformance, companies that serve Apple and Facebook. These strikes illustrate the challenges unions face in these outsourced contexts but also indicate a renewal in union strategies, practices and membership.

This communication examines how different power resources - structural, organizational, institutional, and societal - can be mobilized to address the power imbalance in the employment relationship. The analysis, based on case studies of Apple and Facebook, highlights how unions and workers can respond to the growing power of GAFAM through collective action and strategic innovation.