you find fewer and fewer logistics employees due to their poor conditions

  • 4

Amazon is one of the largest employers in the world. According to Statista, at the end of 2021 it had approximately 1.6 million contract workers globally. A very important part of them is dedicated to logistics tasks in the warehouses of the e-commerce giant, where there is an important peculiarity: the rate of rotation is very high and there are not many professionals who exceed the contract year.

Both circumstances, the need for many employees and high turnover, added to working conditions that are not too good, are leading to a major problem that managers see the need to address as soon as possible, according to an internal report to which the American media Vox has had access: in a short time they will run out of personnel to hire.

workers are missing. The report points out that the high turnover of warehouse workers is the main cause that is leading to the lack of labor in the medium term. As we already explained in Engadget, Amazon puts its logistics employees under great pressure to meet their demanding delivery deadlines, workers whom it controls with a productivity algorithm that, According to investigations by the US authoritieswould even have caused injuries due to its high demands.

This, coupled with modest salaries, means that many workers see Amazon warehouse jobs as temporary to get by until they find something better, or while they study, as is often the case with hospitality or construction.

The aforementioned circumstances have meant that, for many years, logistics turnover has been high at Amazon. Something that the directors of electronic commerce have even promoted, because it has allowed them to meet their high levels of demand to become a fast supplier of consumer products in almost the entire world. without having excessive problems with your workforce. However, now things are changing.

problems grow. That strategy, which has propelled Amazon to the business Olympus, is beginning to show signs of exhaustion in certain regions. On the one hand, employees who do not rotate and have been working in warehouses for some time are organizing to improve their working conditions, and in some areas they have already unionized, and on the other hand, many unemployed people think twice before accepting a proposal labor of those of Jeff Bezos.

Although labor shortages are not yet an issue, the Amazon report notes that in some specific areas it will be very soon, by the end of 2022, and generally in many regions of the United States by 2024.

Where? The internal Amazon document points out two areas that could suffer from a lack of labor this year: the Phoenix metropolitan area, in Arizona, and the Inland Empire, in California, about 95 kilometers from Los Angeles. The latter is a key region in the logistics of the western United States, since it has some 20 million people and two of the largest container ports in the North American country less than two hours away by car. For this reason, the presence of other companies such as Walmart or FedEx is also important, and gives professionals more and better options to choose from.

In Phoenix the problem is different. There, Amazon does not have as much competition, but the turnover level of its warehouses is so high that it is close to exhausting the available workforce for jobs of the nature that it offers. To a large extent because many of the professionals who have already worked in the e-commerce giant do not want to return.

The Jassy era at Amazon starts with a serious setback, and the fault lies with the electric car: its worst balance in 20 years

Other areas that the investigation has indicated as imminent risk of lack of workers are Memphis, in Tennessee, or Wilmington, in Delaware.

Possible solutions. Amazon has already taken the initiative to try to solve the problem of labor shortages. Last year they decided to raise the minimum wage for warehouse workers from $15 to $18 an hour, they pledged to rethink your productivity measurement system (to which the US authorities blamed a significant part of the injuries that occur among the employees of these facilities) and assured that they had invested 300 million dollars to improve the safety of their workplaces.

In addition, the internal report indicates that there is also room for improvement in the hiring processes, since it was discovered that 9% of the applicants were rejected because they were former employees who were not allowed to re-enter, because they had tested positive. drugs or because they had a criminal record. In fact, Amazon has already taken a step in this direction and a year ago ad that would exclude marijuana from their drug tests.

Being a warehouse attendant at Amazon is a high-risk job.  And it is due, in part, to the demands of productivity

Finally, the internal document points out that it would be a good idea to give more weight to the human resources team in choosing the locations of the new warehouses, and that these are not chosen only for their logistical advantages, but also based on the hand of work available nearby.

contrasts. The lack of labor in some locations contrasts, however, with other regions where Amazon has publicly claimed that there are surplus warehouse workers. As we already explained in Xataka, the considerable increase in electronic commerce activity and the high number of casualties caused by the coronavirus pandemic led Jeff Bezos’s staff to expand both their logistics staff and their facilities. In fact, from 2019 to 2021 Amazon increased its workforce by some 800,000 workers worldwide, according to Statista.

But now, with sick leave declining and online shopping receding, some of their workforces are oversized and need to downsize. In the case of workers, Amazon has already indicated that the aforementioned high turnover will provide a solution to excess staff in the short and medium term, while for underutilized warehouses it is already looking for companies to rent them.

The warehouses affected by this excess of workers and space are located in New York, New Jersey, parts of California and Atlanta.

Amazon is one of the largest employers in the world. According to Statista, at the end of 2021 it had…

Amazon is one of the largest employers in the world. According to Statista, at the end of 2021 it had…

Leave a Reply

Your email address will not be published.