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Will this impact on our delivery times? Amazon will cut down delivery hours? Thoughts?
https://www.news.com.au/finance/business/amazon-boss-jeff-be…
Amazon Wage Increase
Homr on 18/02/2022 - 14:05
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yeh which will impact service
It's ok.
People would rather wait a few more hours instead of paying more for shipping.
Agree if cost go up, I won’t order. But wait an extra day or two for my package - acceptable.
Also $43 an hour to deliver packages LOL absurd! How can a job that requires zero education and skill - literally pass a drivers test only - pay $43 an hour.
@Iwantthebestprice: Zero education = unable to read address labels
Zero skill = unable to find address locations@Iwantthebestprice: Correct me if I'm wrong but this is mainly for contractor who use their own vehicle, pay their own fuel etc. Fuel price goes up but Amazon does not increase pay to the delivery driver, who are mostly independent contractors.
@Bigboomboom: Maybe I read the article wrong, I thought it read drivers who carry more the X tonnes of packages would be entitled to a $43 per hour wage, I assume everybody who delivers packages would be on this rate like say for examples the drivers from fastway who could not deliver a package correctly if their life dependent on it…
@Iwantthebestprice: Yeah, a bit wrong. Don't worry, even someone with your comprehension skills can earn $43 an hour however :)
@Crow K: Lucky for me I earn quite a bit more then $43 an hour, but it ain’t delivering packages, it’s an actual skill ;)
@Iwantthebestprice: Just as long as it's not something that requires proofreading or attention to detail! :)
Also $43 an hour to deliver packages LOL absurd!
They're contractors, not employees, so really not that absurd.
Owner-drivers of vehicles that can carry between 1.5 and 3 tonnes of goods will be entitled to $43.74 an hour from March 1.
They must absorb their own employment costs - super, leave liabilities - as well as their business expenses. The oncosts for having an employee are ~15% in Aus, so that's down to $36/hr for a more direct comparison to an employed worker, before considering the cost of them running the business (vehicle/lease, fuel, maintenance, tolls, insurance, liability insurance, etc.). All things considered, for someone with the expense of running a business out of a small commercial vehicle, it probably wouldn't be a great income.
If you want to really balk, you should see what the market values a b-double heading from Melb->Perth at the moment with the rail line out.
(Maybe tone back the elitist trollop anyway, just makes you sound like a flog)
It's only a ruling for the Australian market. Amazon will absorb this without blinking.
I think this will happen.
I order lots of small items from Amazon using prime because it saves me time going to the shops. If Amazon puts the price of prime up too much or delays these deliveries it may be better for me just to switch to eBay or use my own vehicle to purchase the items. If prime increased more than 10% I’d look elsewhere. I really hope Amazon absorbs much of this increased cost of doing business. They make an absolute fortune and really the profits would be better shared among the workers here in Australia instead of going offshore to shareholders. Next will be the food delivery drivers. Personally I avoid this because it always takes too long and I don’t like that they delivery companies take such a chunk out of the restaurants profits. Better for me to spend the few dollars on petrol and keep the profits in the small business owners hands.
Surely this is a good news story.
You would think so….but we all know Amazon will wiggle their way out of it somehow.
I actually prefer my items via auspost. Same 2 drivers, items are neatly stacked etc.
Amazon uses flex drivers close to distribution locations because it’s cheaper per hour/per delivery then alternates, change that equation and those jobs can disappear. Australian’s aren’t so ingrained that delivery is 1-2 days yet.
Amazon deliver via auspost?
Yeah if you live too far away.
I’m 95% auspost, 5% fastways.
I have excellent delivery times via auspost. Anything from overseas is also auspost express once it hits aus.Friend in Wollongong is 50% auspost, 40% fastways, 10% dragonfly.
Yes, if your Amazon parcel can't be fulfilled by a local warehouse. Anything that comes from Brisbane or Perth is AusPost. Melbourne just gets flown up to Sydney for Amazon to deliver
Also if you get your stuff delivered to a PO Box.
I actually prefer my items via auspost. Same 2 drivers, items are neatly stacked etc.
alternatively, I don't mind amazon flex.
I get deliveries to work or home pretty fast if the item comes out of the Sydney warehouse(I'm not in capital city either), and weekend deliveries as well.Personally I am used to the delivery in 1-2 days. If the delivery times blow out then I’d look elsewhere. I figure I’m paying prime to have the items delivered by Amazon couriers. If I want to wait longer there is always eBay with Aus Post. The Amazon business model and proposition is to use their own drivers.
If I want to wait longer there is always eBay with Aus Post
Yep, the main advantage Amazon has is shipping times.
The getting things in a couple of days vs week+ estimates via eBay is the reason I buy via Amazon many times, despite sometimes being a few bucks more.
45 percent over 3 years !
The ruling doesn't appear targeted at Amazon so good news for all delivery drivers who provide their own vehicles.
I can imagine Amazon increasing Prime subscription fees and/or relying more on third party delivery services in response though.
Higher wage minimums mean more people will want to deliver for Amazon and other deliver companies, which can lead to higher quality deliveries. Especially since all delivery services are paying the minimum. Amazon may fire half of them tho, which can mean twice as long delivery.
Those delivery people can have a living now and those doing it as a second job will have more success in their life.
Consumers may pay more though.
If you don't like this, what's the better way of giving delivery people a minimum standard of living? Or you don't care about your fellow man?
Gig jobs are temporary work.
Get in, make a buck and get out.
People that want to pay more can choose priority shipping. Keep the standard shipping low for budget conscious people.
Temporary work naturally comes with a high premium. Casual work costs more, and you think temporary work should be paid less, why?
Unskilled work is on the bottom of the 🪜. They should get paid below skilled work.
@rektrading: Are you saying this new minimum wage is above temporary skilled work? Which jobs?
It may be unskilled, but it's temporary.
The inclusion of minimum rates for smaller vehicles means Amazon Flex drivers will be entitled to $27.83 hourly rates.
That rate will increase to $37.80 by July 2025.
The pay increase is above minimum wage for unskilled work.
The national minimum wage is currently $20.33 per hour or $772.60 per 38 hour week (before tax).
Casual employees covered by the national minimum wage also get at least a 25% casual loading.
@rektrading: Yes, some of the pay is going towards their business expenses such as transport maintenance, insurance, etc.
Read other threads about people discouraging people from delivering for amazon, uber, etc because of the costs the companies offload to delivery contractors.
@orangetrain: It's a gig job. A job between jobs.
People aren't meant to become rich or use it to get a mortgage.
@rektrading: If those gig companies are unable to stay in business where all delivery costs are offloaded to delivery contractors and not pay them a living wage that takes into account, the costs, then they should not be in business. Simples.
@orangetrain: People shouldn't do gig jobs if they don't like the conditions.
The should 👀 for full-time work where the minimum wage is guaranteed.
People shouldn't do gig jobs if they don't like the conditions.
And employers must make sure they pay their workers a liveable wage. These aren't conflicting ideas.
The should 👀 for full-time work where the minimum wage is guaranteed.
Sounds like the minimum wage is guaranteed here, too - great news then.
@rektrading: No different to any other business when a court rules they need to pay their staff fairly. Yes
Yes gig jobs are for people between normal jobs. It offers people an alternative to claiming government money, ie taxes for welfare. It’s not a sustainable income because it’s unskilled then anyone can come in and undercut you. Say I want to start a driver service for Amazon. I lease the cars and find the drivers then I pay them minimum wage again and take the difference minus expenses.
which can lead to higher quality deliveries
maybe, but then again maybe not.
I second this. People are told about the wage in advance and chose to go with it. The fact that they are pushing this means money comes first and service quality further down the line.
Why not? Amazon can only pick from 10 lazy people who don't give a shit. With the wage rise, there could be 20 people. 10 who want to keep the job vs 10 lazy people who now has to step up or get replaced.
Amazon will fire five of the ten drivers and pay them 15% more. The five who still have a job will work harder or they'll be replaced by the 20 people that are waiting at the gate.
@rektrading: At least they're getting paid 15% more. I imagine they prefer to work harder with more pay than the threat of being replaced.
@orangetrain: Yes, and five of them will get fired to pay for the five that are still working.
It's a job well done by the Unions.
@rektrading: Are you saying 10 of them should be paid below living standards instead of 5 who can afford a living?
Those 5 workers who got fired, well, at least if they get a job elsewhere, it will pay more.
Net win for workers but net loss for Jeff.
@rektrading: That's normal for society to advance to have a reasonable living for everyone. The government has an incentive in paying social security to reemploy these people elsewhere.
Do you want cheap/free delivery at the expense of the poor/desperate?
@orangetrain: People complain about high taxes and it being wasted and here they've Unions go out of their way to make people unemployed.
This is absolutely disgusting, these drivers are contractors, they are not entitled to minimum wage protections, they have signed on the dotted line to receive their contract rates.
They want the flexibility of gigs but the benefits of full-time.
Amazon will probably pass the cost off to customers.
Wen bots?
Exactly pick and choose the best parts.
Disgusting.
As part of the gig economy they have signed up to be contingent labour with the associated better rates and flexibility…no gun was put to their head to sign and if they wanted better money they could become for example, a union site lolly pop holder….
Great! I hope they get paid even more! The company that makes 17 billion dollars a month can probably afford it!
Will this impact on our delivery times? Amazon will cut down delivery hours? Thoughts?
OP's user pic checks out.
Not to union bash or anything.. this has been driven by the TWU under the fight for 40 flag for the courier industry for years.. article even mentions Amazon not being a party to the action…actually reads like the TWU release on the decision…
Doubt many of the Amazon gig drivers referred to in previous posts would even be aware of the decision.
Lots of people exist on pre tax wages of less than $20 ph, whilst paying for work clothes, travel to work, parking, lunch…….
already impacting… PRICE HIKE MEMBERSHIP. got the email…
…..
As of February 18, 2022, the price of the monthly Prime membership has increased from $12.99 to $14.99, and the price of the annual Prime membership has increased from $119 to $139. The new prices, plus applicable taxes, will apply after March 25, 2022, on the date of your next renewal.That's US and was announced in their earnings call, which was prior to this.
Not sure how the au wage rates would impact the us prime membership cost.
(They also get a lot more benefits than we do, hence the higher price)oh haha crap! I've been paying for two prime!!!! thanks for your eyes.
edit: sooooo bad!!!! I've been paying for US prime for more than a year as I forgot to cancel the 1 month trial just so i can get the damn dewalt multitool. I think time to audit all my CCHow to blow all your ozbargain savings 101 ^
Amazon cashback untracked.
Amazon can fire 1/2 the drivers to mitigate the cost of increasing the pay.