Nearly half of Amazon's front-line warehouse workers are struggling to make ends meet, a new report finds. The study comes five years after the online retailer raised its minimum wage to $15 an hour.
According to a report from the University of Wisconsin Center for Urban Economic Development, 53% of workers said they experienced food insecurity in the past three months, and 48% said they struggled to cover rent or housing costs during the same period. did. Chicago, Illinois. Another 56% of warehouse workers who sort, pack, and ship products to customers said they were unable to pay their bills in full.
“This study shows how much the goalposts have shifted. In the past, large corporations, leading the economic world, provided a path to the middle class and provided relative financial security.” said Dr. Sanjay Pinto, a senior researcher at CUED and colleagues. the report's authors said in a statement Wednesday. “Our data shows that nearly half of Amazon's front-line warehouse workers are able to pay their bills while suffering food and housing insecurity. That's not what economic security looks like. .”
Despite working for one of America's largest and most profitable companies, Amazon's warehouse workers appear to be under the greatest financial strain, with one-third receiving benefits such as the Supplemental Nutrition Assistance Program (SNAP). Relies on at least one publicly funded support program. The report's data reveals that there appears to be a disconnect between these workers' incomes and measures of economic security.
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The researchers included survey responses from 1,484 workers in 42 states. The Ford Foundation, Oxfam America, and the National Employment Law Project supported this effort.
Linda Howard, an Amazon warehouse worker in Atlanta, said the pay for workers like her pales in comparison to the physical demands of the job.
“Amazon's hourly wage is not enough for the back-breaking work…Given the hard work we do and the money Amazon makes, all employees should earn a living wage,” she said in a statement. Stated.
The report also highlights the economic devastation that can occur if warehouse workers take unpaid time off after becoming injured or exhausted on the job.
Research shows that 69% of Amazon warehouse employees have had to take time off to deal with work-related pain or fatigue, and 69% of Amazon warehouse employees have had to take time off to deal with work-related pain or fatigue, and 69% of Amazon warehouse employees have had to take time off to deal with work-related pain or fatigue 60% of people report experiencing food insecurity.
“The findings we report are the first to show a link between workplace health and safety issues and employees' experiences of financial insecurity,” said Beth Gutelius, Ph.D., research director at CUED and co-author of the report. This is the result.” “Workers who have to take unpaid time off due to pain or fatigue are far more likely to experience food and housing insecurity and difficulty paying their bills.”
Amazon disputed the findings.
An Amazon spokesperson said: “The methodology cited in this paper is deeply flawed. The study ignores research best practices and does not include verification safeguards to ensure respondents are Amazon employees. “The means are limited and do not preclude multiple responses from the same person.” said in a statement to CBS MoneyWatch.
The average hourly wage in the U.S. is currently $20.50, the company added.
In April, the company criticized the group's earlier study, which focused on workplace safety and monitoring of Amazon warehouses.
“While we respect Oxfam and its mission, we strongly disagree with the characterizations and conclusions made throughout this paper, many of which are based on flawed methodology and exaggerated anecdotes.” Amazon stated in some of the early studies. Amazon also questioned the veracity of the answers used in Oxfam's report. The company said it believes researchers cannot confirm whether respondents actually work for Amazon.
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