Amazon makes significant surprise pay rises for all its staff
It might well have ruffled feathers recently, by requesting staff return to the office five days a week, but e-commerce giant, Amazon, has this past week announced significant pay rises for all its workers – particularly those in its fulfillment and transportation sectors. The latest raise – which is effective from this month – should see the average worker’s base pay rise to around $21.50-$22 per hour (depending on their role) – which represents a wage rise of $1.50 per hour. All told, it will bring the average total compensation package (including benefits), to more than $29 per hour for many of its workers. This represents an additional $3,000 per year for full-time employees. As a new perk, Amazon announced that workers would receive free Amazon Prime memberships starting in early 2025. Commenting on the rise, Udit Madan, vice president of Amazon Worldwide Operations said in a statement: “We’re making a significant new investment in pay and benefits for our hourly front-line employees. This is part of an annual process where we review our wages and benefits to ensure that they stay competitive – and in many cases industry-leading.” Amazon has a history of increasing wages and improving employee benefits. In 2018, it raised its starting wage to $15 per hour; more than double the federal minimum wage at the time. Since then, the company has continued to boost pay each year.
…as three-quarters of Amazon workers considering quitting over office RTO
Are the wage rises too late though? While some might have expected the news that some Amazon workers are now considering quitting over its recent edict to return to the office five days a week, new data suggests the sheer numbers doing this are huge. A new survey suggests nearly three-quarters (73%) of employees now say they’re considering quitting over the move, with reports many are already actively seeking new jobs. The survey, by Blind, reveals more than 90% of Amazon workers are against the new in-office requirement, and the RTO rule is the reason why job applicants are also said to be pulling out of Amazon’s recruitment process. Candidates are reported to be rejecting offers specifically because of the RTO mandate, with majority of applicants hesitant to give up their freedom because many already work remotely. Times Now News reports “it is unclear if Amazon will change its policies in response to the complaints, but if it continues with the present course of action, it might lose talented employees.” Amazon is now looking increasingly out of kilter with many other technology firms. Separate research suggests only 3% of IT companies demand full-time office presence – mainly due to employee pushback.
Port workers strike threatens global supply chains
Thousands of members of the Longshoremen’s Association (ILA) have gone on strike this week, affecting all ports from Maine to Texas – which account for 43-49% of all US imports. Impacted ports include Boston, New York/New Jersey, Philadelphia, Wilmington, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Miami, Tampa, New Orleans, Mobile, and Houston. The strike began after the contract with the United States Maritime Alliance (USMX) expired on Tuesday morning, and also after a last-ditch pay offer worth 50% over six years also failed. Late on Monday evening USMX had offered a deal that would increase wages by nearly 50% over six years, including tripling employer contributions to employee retirement plans, strengthening health care options, and a plan to “retain the current language around automation and semi-automation.” However, no agreement was reached with the ILS when the clock struck midnight. New York Governor Kathy Hochul said: “It’s critical for USMX and the ILA to reach a fair agreement soon that respects workers and ensures a flow of commerce through our ports.” The Conference Board, a US think tank, said on Monday that a one-week strike would cost the US economy $3.78bn, or about $540m per day, as vehicle and container terminals at 36 ports shut down. The ILA is the largest maritime union in North America, and this is its first strike action since 1977.
Oklahoma-based Apple workers become the second to ratify contract
Apple retail workers at the Penn Square Mall store have voted to ratify their first collectively bargained agreement, making them the second US store to win a unionized contract. Working with Communications Workers of America Local 6016, workers won a new three-year employment contract with the multi-billion corporation, improving pay, work-life balance and working conditions. The deal means unionized workers have struck an average 10% pay increase over the next three years based on ratings and employee performance. In the next year, wage will increase by 4%. Over the next two subsequent years, it will increase by 3%. It means employees can gain up to a 11.5% pay increase over the next three years. The new contract also offers availability guidelines for scheduling time off to address work-life balance difficulties. Moreover, it has been agreed that two representatives from Apple and two from the union will meet twice a year to review labor-management relations. Apple spokesperson Sharon Gilson said, “At Apple, we work hard to provide an excellent experience for our team members and our customers. We have always paid our retail teams in the top tier of the market, and we provide exceptional benefits for all full- and part-time employees. Throughout this process, we have bargained in good faith, and this agreement allows Penn Square team members to enjoy similar performance-based wage increases this year as last year, along with the same medical and time away benefits our U.S. retail employees currently receive.”
Blue-collar workers more optimistic about AI
In a reversal of the accepted norm that those with lower-academic success have the most to fear about AI taking their jobs away, new research by MIT suggests workers ‘without’ college degrees are more optimistic about artificial intelligence. The study found that 27.4% of workers without a college degree estimated that automation will be beneficial for their job security, compared to 23.7% of workers with a college degree. This finding was also repeated at an ethnic level too, with 38% of black workers without a college degree perceiving automation as having a positive impact on job security, compared to 34% of black workers with a degree, according to survey data. Researchers have suggested that the counter-intuitive nature of the results could be explained by the fact that employees without a college degree “realize that replacing workers with automation is actually quite hard, and therefore they are not worried.” MIT also postulates that these workers may also associate the introduction of new technologies with a “growth outlook for a company” that makes them feel more secure. The study reviewed workers’ perceived impact of automation in five categories: safety and comfort, pay, autonomy, upward mobility, and job security. US workers were the only ones to report a net negative impact of automation in any category, citing both job security and pay. Overall, workers in roles that they identified as requiring complex problem solving or new ideas tended to be more positive about automation.
DOL sues security firm for misclassifying guards as independent contractors
In yet another case of whether certain workers are classed as ‘employees’ (with all the labor protections this carries), or ‘independent contractors’ (which provide virtually no protections), the Department of Labor (DOL), is suing San Juan-based security guard company Optimus Service Group LLC and its principal Jorge Rivera Berrios for alleged violations of the Fair Labor Standards Act. The complaint alleges the employers willfully misclassified at least 254 current and former security guards as independent contractors, failed to pay the required overtime rates and did not make, keep and maintain complete and accurate records of employees’ wages, hours and other employment conditions. Filed by the department’s Office of the Solicitor, the suit seeks back wages, liquidated damages and injunctive relief to prevent ongoing and future violations. Commenting on the filing Jose Vazquez-Fernandez, wage and hour division district director, said: “This isn’t the first time Jorge Rivera Berrios has misclassified security guards as independent contractors unlawfully. He and his company, Optimus Service Group LLC, must be held accountable for their failure to pay workers their legally earned wages by wrongly classifying hundreds of security guards as independent contractors instead of as employees.”
Greatest workplaces for mental wellbeing revealed
Newsweek’s inaugural ‘Greatest Workplaces for Mental Wellbeing’ has been announced, with companies making the grade including the likes of ADP, Bright Horizons, Compass Group, Mercer, Pappas Restaurants and Robert Half. The listing names the top 750 US employers judged to be making a positive difference to the mental wellness of their workers. It is based on assessments of public data, feedback from HR executives at companies with more than 1,000 employees, and an anonymized panel of HR professionals to identify employee-satisfaction drivers, and large-scale confidential online surveys of more than 250,000 employees working for US companies. A research phase was also conducted by business data specialist, PrivCo, to examine seven KPIs related to mental well-being, including a range of corporate mental health programs and social media ratings of work-life balance. Just one of the companies making the grade was Mediacom. Commenting on its inclusion on the list, Italia Commisso Weinand, Mediacom’s executive vice president of programming and human resources said: “I’m extremely proud that we’ve created a work culture that prioritizes the needs of our employees. The corporate initiatives we’ve implemented have resulted in significant increases in overall employee satisfaction, including mental health.”
