Amazon skimmed away the tip wages of some of its Flex drivers for three years.
The company is worth billions upon billions--but stripped away $61.7 million in tips.
In late 2016, the FTC alleges, Amazon shifted from paying drivers the promised rate of $18–25 per hour plus the full amount of customer tips to paying drivers a lower hourly rate, a shift that it did not disclose to drivers. Amazon used the customer tips to make up the difference between the new lower hourly rate and the promised rate. This resulted in drivers’ being shorted more than $61.7 million in tips.
The FTC alleges that the company then intentionally failed to notify drivers of the changes to its pay plan and even took steps to make the changes obscure to drivers, with one employee reporting to colleagues that Amazon “did not want to communicate any pricing changes to [drivers], so we are only ‘reacting’ to any questions.” After making the change, the company continued to promise drivers and customers that 100 percent of tips would be passed through to drivers.
Amazon received hundreds of complaints from drivers after enacting the change, as drivers became suspicious when their overall earnings decreased. Drivers who complained received form e-mails falsely claiming that Amazon was continuing to pay drivers 100 percent of tips. Internally, Amazon employees referred to the company’s handling of the change and driver complaints about it as an “Amazon reputation tinderbox” and “a huge PR risk to Amazon.”
A pittance for a conglomerate awash in cash, thanks to the pandemic.
Down with the oligarchs.
Hat-tip to Don for the find.
The 1% squeezing the 99. Feudalism for the 21st century masquerading as a "free" market.
ReplyDeleteAll I can say Todd is: Amen.
ReplyDelete