Amazon, DoorDash, and Walmart are among the top employers of government health and food assistance recipients.
United Nations (UN) poverty experts have accused the CEOs of Amazon, DoorDash and Walmart of inadequate pay, hostile union-busting tactics, and treating workers as “independent contractors.” It called for addressing claims that misclassification is pushing workers into poverty.
Olivier de Schutter, an independent expert on extreme poverty appointed by the United Nations, said: “Employees of the world’s most profitable companies in one of the richest countries on earth are “I’m very upset that people are struggling to pay their bills and rent.” and human rights, in a separate letter to the CEOs of both companies. “Billion-dollar companies should set standards for working conditions and wages without violating workers’ human rights by not paying them a decent wage.”
A recent United Nations report on extreme poverty and human rights, authored by De Schutter, found that 6.3 million people in the United States, or 4.1% of the workforce, are classified as working poor. The working poor in the United States are defined as people who work or look for work at least 27 weeks per year, but whose income is below the national poverty line ($14,580 for an individual and $19,720 for a family of two).
Many employees at Amazon, DoorDash, and Walmart fall under the working poor. Amazon, DoorDash and Walmart are among the top employers of recipients of government health and food assistance, according to a 2020 Government Accountability Office report.
“Jobs are supposed to provide a route out of poverty, but the business model of all three companies appears to be one of shifting operating costs onto the public by relying on government benefits to supplement disastrously low wages.” said De Schutter.
The ability of workers at these companies to negotiate higher wages is hampered by aggressive union-busting efforts. Walmart, the nation’s largest employer, has engaged in anti-union activities for decades, including closing stores in response to labor protests. In 2022, Amazon reportedly spent more than $14.2 million on anti-union consultants. DoorDash, one of the leading gig platforms, has fired employees for unionizing and publicly opposed a bill to raise wages for its workers.
“The United States appears to be turning a blind eye to the union-busting activities of its most powerful corporations and allowing workers to accept poverty wages, even as corporate profits soar.” Schutter said.
Both companies were required to respond to these allegations within 60 days, but only Amazon provided a response by the October 31st deadline. After the letter was made public, DoorDash disputed the allegations and agreed to provide a more detailed response in the coming weeks.
“Most of what these companies are doing is not illegal,” De Schutter said. guardian. “What they are doing is taking advantage of loopholes in the system, such as misclassifying workers as independent contractors rather than employees. There are a lot of loopholes and I’m still waiting for an answer from the Department of Labor.”
Earlier this year, Mr. de Schutter sent a letter to the U.S. government accusing Amazon, DoorDash, and Walmart of violating U.S. and international labor protections and international human rights obligations and promoting workplace poverty for their employees. detailed the allegation that
“According to available information, workplace poverty is caused by highly inadequate and inconsistent wages, systematic and unfair classification of workers and the prevalence of gig work, inadequate social protection, weak and unenforceable “This directly relates to U.S. laws and policies, including labor laws, widespread discrimination, and a lack of protections for workers at high risk of poverty,” the letter states.
“Companies have a responsibility to respect internationally recognized human rights, such as the right to a living wage and the right to join a trade union without fear of reprisal,” De Schutter said in a statement. “The allegations against Amazon, DoorDash, and Walmart constitute serious violations of these rights, and it is time for these companies and the U.S. government to be held accountable.”
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