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Leaked Amazon memo warns the company is running out of people to hire

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Re: Leaked Amazon memo warns the company is running out of people to hire

#231

I think this article might bury the lede a bit: >Walmart is offering some workers with past warehouse experience as much as $25 an hour. An Amazon executive told Reuters in late 2021 that the company was bumping the average starting wage for new hires in the US to more than $18 an hour, attributing the decision to intense competition among employers. People used to work for Amazon warehouses in the 2010s because $15/…

Shows that a true minimum wage is not something the government can mandate. There is a natural minimum wage that the market determines. It depends on (at least) the nature of the work and the supply of potential employees. For warehouse work, it's apparently over 2x what the government says it should be.

The natural minimum wage that the market determines (absent all regulations) is $0 per hour and is called slavery. Enlightened people have moved passed the idea that the “market” alone should determine the minimum wage.

Re: Leaked Amazon memo warns the company is running out of people to hire

#232

I think this article might bury the lede a bit: >Walmart is offering some workers with past warehouse experience as much as $25 an hour. An Amazon executive told Reuters in late 2021 that the company was bumping the average starting wage for new hires in the US to more than $18 an hour, attributing the decision to intense competition among employers. People used to work for Amazon warehouses in the 2010s because $15/…

Shows that a true minimum wage is not something the government can mandate. There is a natural minimum wage that the market determines. It depends on (at least) the nature of the work and the supply of potential employees. For warehouse work, it's apparently over 2x what the government says it should be.

> There is a natural minimum wage that the market determines.

The market "determined" this "natural minimum wage" because a patchwork of laws dictated (somewhere around) a $15 minimum wage in a lot of locations and as a policy for many state/city/county contracts.

Re: Leaked Amazon memo warns the company is running out of people to hire

#233

Earlier quoted context omitted.

Amazon annual gross profit for 2021 was $197.478B, a 29.28% increase from 2020. https://www.macrotrends.net/stocks/charts/AMZN/amazon/gross-...

There is no reason to ignore fixed costs (aka using “gross profit”) for the purpose of calculating how much extra cash a company could be paying its employees. Net income (aka profit) is the extra cash flow that could have been spent.

Doesn't "profit" of any kind have stuff subtracted out?

Yes it does:

https://www.investopedia.com/terms/g/grossprofit.asp

Sales commissions, direct labor that varies with output, to name a few.

I appreciate that you provided your favorite metric, but gross profit is affected by wages, so it is on point as far as I'm concerned.

Re: Leaked Amazon memo warns the company is running out of people to hire

#234
post #182

I think this article might bury the lede a bit: >Walmart is offering some workers with past warehouse experience as much as $25 an hour. An Amazon executive told Reuters in late 2021 that the company was bumping the average starting wage for new hires in the US to more than $18 an hour, attributing the decision to intense competition among employers. People used to work for Amazon warehouses in the 2010s because $15/…

Amazon does a lot to optimize employee productivity. This has two corollaries: 1) Working for Amazon is no fun. For the same income, employees would prefer an employer where they have more time to relax and have less extreme workloads. If Amazon paid the same wage as a lazy cafe by the beach, guess where workers would prefer to go? 2) Worker productivity is higher, so Amazon can afford to pay more while being competi…

Solution to #1 is bringing in workers that care more about $ than lifestyle. Same situation in the tech industry.

Re: Leaked Amazon memo warns the company is running out of people to hire

#236

Earlier quoted context omitted.

> At what point do we simply ask if Amazon leaders have no sense of decency? We don't need to ask, we already know. Actions speak louder than words anyway, and we've all seen how they treat all their workers: from warehouse to corporate. One would be a bit naive to think only their warehouse workers get treated badly, corporate workers are slapped around just as much in their own way. Even in death, Amazon doesn't ca…

Technically 20 is a number of minutes... But yeah even as a software engineer I'm often torn about wanting to work for Amazon. They have quite a few interesting projects and the pay is solid, but there are a lot of horror stories out there that suggest it is a brutal place to work even for engineers.

One could even say that "they responded in microseconds."

Re: Leaked Amazon memo warns the company is running out of people to hire

#237

I think this article might bury the lede a bit: >Walmart is offering some workers with past warehouse experience as much as $25 an hour. An Amazon executive told Reuters in late 2021 that the company was bumping the average starting wage for new hires in the US to more than $18 an hour, attributing the decision to intense competition among employers. People used to work for Amazon warehouses in the 2010s because $15/…

Shows that a true minimum wage is not something the government can mandate. There is a natural minimum wage that the market determines. It depends on (at least) the nature of the work and the supply of potential employees. For warehouse work, it's apparently over 2x what the government says it should be.

Minimum wage is important when you have more people wanting to work, than jobs. Right now 1 in 300 people just died, a bunch retired, and 3-5% of the remaining workforce is out with covid and/or post-covid syndrome. So right now there are more jobs than workers.

Given people's natural inclination towards reproduction, at some point in the future, there will once again be more people than jobs, and minimum wage will once again become a flashpoint as quality of life begins to shrink. That's not even accounting for inflationary effects on the bottom 75% of wage earners.

Re: Leaked Amazon memo warns the company is running out of people to hire

#238
post #182

Earlier quoted context omitted.

Amazon does a lot to optimize employee productivity. This has two corollaries: 1) Working for Amazon is no fun. For the same income, employees would prefer an employer where they have more time to relax and have less extreme workloads. If Amazon paid the same wage as a lazy cafe by the beach, guess where workers would prefer to go? 2) Worker productivity is higher, so Amazon can afford to pay more while being competi…

Solution to #1 is bringing in workers that care more about $ than lifestyle. Same situation in the tech industry.

[deleted]

Re: Leaked Amazon memo warns the company is running out of people to hire

#240

Earlier quoted context omitted.

> If we raise min wage then they'll just fire people to make up the cost […] Dropping employment due to higher (minimum) wages has mixed-data in empirical studies: * https://en.wikipedia.org/wiki/Minimum_wage#Empirical_studies

While the comment you're replying to is wrong, these empirical studies are ridiculous. Every price has some elasticity, but the fact is that if a worker earns an employer $8 an hour in revenue, they're not going to pay that worker $9 an hour, and if the minimum wage was greater than $8 an hour, then that worker would be out of a job, thus making $0 an hour. The studies about the price elasticity of labor also don't b…

However, a if the minimum wage is increased to $9, the collective spending power of the minimum wage cohort may increase enough to increase the per worker revenue to $9 or more. Likewise, if the employer cohort doesn’t believe this to be the case and fires workers, then X% of the workforce will no longer have the discretionary spending to support $8 in revenue.
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