Amazon executives are worried they'll run out of people to employ
businessinsider.com
businessinsider.com
I think the real loser here ends up being restaurants wondering why they can't get people for 2.15+tips
Back when I was in college I took a job as a stock clerk at Publix, I got paid more than some supervisors ($12/hr in 2015), but my god was that the hardest job I've ever had. You're basically lifting for 6-8hrs straight.
I heard a report on NPR a few weeks ago where they were lamenting how much servers make and we’re basing their data on reported income to the IRS. Hah.
I believe servers get taxed at a certain rate regardless of if they actually make the tip. It's assumed they will make $x in tips so they are taxed for $x regardless of if they made that or not. They get hosed on both sides (employers and government).
I was working 2x 20hr/week jobs and making less than her working a Fri/Sat/Sun..
Anyway, most of that in principle was cash tips. She was young enough where she was getting all of her tax back anyway, but I do know many people who underreport the tips they receive.
People are not willing (apparently) to give up a sure-thing like high-paying fulfillment work or enhanced unemployment benefits in exchange for an unstable position like making $2/hr and hoping patrons throw money at them.
Restaurants have to pay $15-$20 an hour to have a consistent and reliable workforce in the current market.
Anecdata: At a McDonalds in an urban center in Colorado they're offering minimum 17.25.
Megacorps like Amazon can whine as much as they want that they're "running out" of employees, but the solution is obvious: just raise wages. Once big employers like Amazon start feeling this squeeze enough, they'll start passing the costs on to consumers, and eventually even those Chinese imports will start becoming more expensive. Once that happens, it becomes impossible to pretend that inflation is not real.
Plus, recall Keynesian feedback loops that more wages will unlock more consumption -> more wages. So increasing the wage share can even make the rich better off, unless the rich cruely only care about their power relative to the poor.
It's an unusual twist on clearing the market - arguably they ought to raise wages, not so much to retain people by paying them enough that they stick it out in hell a bit longer, but so they can clear the market for people able to tolerate and thrive in the working conditions.
This is by far the best news I've heard about Amazon warehouses. It's so incredibly awesome that there might be something that Amazon can't lobby against that could force them to be more nice to their employees.
Another thing that was apparent was that some people were just better order-pickers than me. One part of my post above was kinda wondering how Amazon would do if they kept the demanding work, but paid enough to recruit (and treated well enough to retain) physical outliers, a bunch of warehouse athletes.
I've visited a car factory, a well-run Japanese marque, where it was mentioned that they had very high initial turnover - some people just couldn't take the pace of the production line - but high longer-term retention. In a sense they must be doing something right.
I would not put it past them or the lawmakers.
I really shouldn't be giving out ideas like these.
From my experience in the retail/restaurant/hotel businesses, it is a usual twist. It just gets articles about it because it is Amazon and it lands clicks.
These are jobs known to have a lot of turnover and the employers make no effort to reduce turnover, from a combination of their customers opting for cheaper prices at competing businesses with high turnover and employers having (historically) the upper hand in the supply/demand equation for that type labor.
Workers are renewable for annual exploitation
Obviously, working at Amazon as an SDE or whatever isn't quite the same as signing up for the military but the recruitment strategy isn't all that different.
This is why the army uses young men for combat and why apprenticeships in trades work exist. To exploit young people
soldiers can at least be promoted. apprentices may eventually become journeymen. both provide skills training that enable you to become an independent contractor, and the higher tiers offer quite decent pay.
but for now everyone knows amazon is just a dehumanizing dead-end survival-wage job that will wreck your body, and the executives know everybody knows this, thus tfa
Coupled with increase pay incentives, yeah they will come back.
If they were fired for not hitting metrics and not for misconduct, they're probably willing to rehire.
My understanding is that "hitting metrics" in these warehouses is so exhausting that most people can't do it indefinitely.
IIRC, there are quite a few people who work at these Amazon warehouses who are essentially nomadic (e.g. living out of camper or van), but I don't it's enough to really change that equation.
Honestly, the next step Amazon needs to do is get serfdom legalized. Then they could purchase a fief in these areas and require a customary amount of labor from each household per year.
https://en.wikipedia.org/wiki/Amazon_Robotics#Acquisition_by...
But I guess thus far they've found that just burning through human labour is more cost effective. Perhaps upgrades to labour conditions/wages via unionization, regulation, etc would change that calculus.
For some manufacturing facilities the robots pick all the parts and then the humans take the "shipment" of parts to the actual line and distribute it to the relevant stations.
The robotics and ML needed to be able to open a storage bin, see what items are inside, choose the one you are looking for- and only it- and then carefully pull it out without disturbing the other items, that is the problem Amazon faces with full automation.
You could reduce the number of SKUs per bin, but then you have a storage problem- there's way more SKUs than bins in a building. You could go slower, but then you have a throughput problem.
It's really, really hard. And while humans have a high opex, they're really good at that particular problem. Hands and eyes are incredible tools. Robotics is catching up though, and it's awesome, but it's not there yet.
Source: I spent many years working in Amazon Fulfillment Tech (and these opinions are my own and do not represent me speaking for the company).
* raise wages
* change job conditions
* build better filters for who they hire
Right now, you can apply for a job at Amazon through a Web form and get a response back in 15 min. An algorithm, some parts of it powered by ML, is probably doing that. And it's probably creating false negatives. Look at who it's rejecting, and improve the algorithm.
- 60%: raise wages
- 30%: better working conditions
- 10%: better filters (with the two items above a prerequisite)
Farmers need trade with an outside source to get new horses after the old one dies. However, a farm at break even can be paying for needed supplies like horses, which is in effect subsistence farming because there is no long term surplus.
I'm assuming you weren't just randomly throwing your comment into the cybervoid. The person to whom you responded said that Amazon employees might prefer a company where 'workers aren't driven like some beast working a field' - implying that they are treated as such at Amazon. You suggested that beasts aren't treated so badly by their masters, which following the analogy, suggests that Amazon workers aren't treated so badly. I'm countering that suggestion.
They go around nickel and diming everything with their employees, topgrading everyone on 360 performance reviews and then have offsites where they tightly clutch their pearls over how they just can't understand why retaining talent is so hard. Unless you're lucky enough to get hired into a group which is highly thought of, it can be a really bad place to work, even if you're getting paid a lot.
Someone really needs to buy each of the Amazon executive team one of those "the only consistent feature of all your dissatisfying relationships is you" coffee mugs.
It's always the same with these companies-- they "can't find enough talent" but the recruiters glad-hand the candidates but the interviews are tough and arbitrary. If you get/take the job-- stacked ranking will burn you out and fire you when you have children, a health problem, family problem etc, or dare age, or stand up for yourself.
Augment people rather than trying to replace them.
Jeff is getting fat, stepping back, and going to space. I don't think he's gonna spruce the place up and put free cokes in the fridge anytime soon.
I don't get it.
When you have that mindset and investment in those areas, and especially when talking about positions that require relatively little training investment, I wouldn't be surprised if it is cheaper.
I think Amazon is reaching a point where the incoming pipeline of workers is drying up, though, and Amazon execs are apparently clueless on what to do next. It's really a situation where Amazon squeezed its workforce so hard in search of short term results, and now is reaping the long term results of a workforce that hates the company. Ironic, since one of Amazon's precious leadership principles is specifically to not do that.
All of this also applies to the corporate workforce, too, btw. There's an insane amount of attrition right now and nobody qualified wants to work at Amazon, even with the 200k+ offered salaries. It's not just a money issue, but a reputation/culture issue, and Amazon organizationally doesn't know how to solve those types of issues.
Recently left a company with an ex-Amazon Director who was VP of Engineering. He was an absolute snake who had only really worked at Amazon for his entire career. He did his expected round of firings/PIPs at the 2 year mark, then quit himself. Many experienced engineers left around the same time since we all were tired of the shitty Amazon culture he was breeding.
The point is that now you have to watch out for who the Directory/VPs are at your current organization. If they bring in someone from Amazon expect the company culture to go downhill fast.
Plus unions increase quality of the trade.
There has to be a different reason, we just can't tell what it is.
The upside being lower spending on things like testing eligibility, the downside being that either the cost balloons to about $4-6 trillion a year or you basically just accept that some people are not gonna be able to survive.
Their arguments against unemployment benefits are instructive. I don't think a livable UBI is a possibility in the current US political climate, doubly so since it cannot be sustained by income taxes on a shrunken labor base, necessitating more taxes on robot companies.
I can't help but wonder sometimes if that isn't the point for some people.
A raised minimum wage has the potential to become expensive. Pipe dreams, meanwhile, are free.
One of those dystopian facts that makes me feel some kinda way.
With more than 20 billion people at that time (the USA could have 850 million ppl), the only way for people to survive will be through hyper-efficient production processes and equalitarian distribution policies.
It's interesting to read in [1] that one of the founders is working with RightHand Robotics [2] on picking. I wonder if RHH would be another acquisition target for Amazon if they solve that problem.
[0] - https://en.wikipedia.org/wiki/Amazon_Robotics
[1] - https://www.therobotreport.com/kiva-systems-creators-inducte...
I’m one of those tech people that wouldn’t work at Amazon no matter how much they paid me. Friends that did appear to be suffering PTSD many years later.
They'll try anything except offer a fair labour price
"all those CEOs complaining about a worker shortage are just cheapskates not willing to pay more!"
vs
"all those millennials complaining about a housing shortage are just cheapskates not willing to pay more!"
Or because boomers are preventing construction because it would lower their property value.
I wonder if they have a ramp up time to allow their new associates body's to adapt to the very physical demands of the job. Same as you don´ t start hiking 20 miles a day, you need to start small and let your body adapt over a few weeks.
"Welcome to the new national Amazon gym program! Upon completion and after graduation, you'll have a guaranteed interview and job opportunity waiting for you at Amazon!"
Leverage all the existing tax payer subsidized time, staff, materials in public schools. Furnish a few facilities with new equipment for publicity and image. They could even rustle up a few scholarships in a national competition to get kids interested and it would be a nominal fee for a physically fit workforce ready to sprint around warehouses and urinate/defecate in small containers.
Can’t wait!