The United Nations special rapporteur on extreme poverty and human rights has warned the CEOs of Amazon, Walmart and DoorDash, and the US government, that America’s top companies have kept workers in poverty by paying too low wages and that the government He asked them to address allegations that they were forcing people to rely on the government. A support program for survival.
Olivier de Schutter has written to three major American companies and the US government, demanding answers to a number of allegations. Among them: Amazon and Walmart among the top 25 employers with workers dependent on the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, and Medicaid in nine states surveyed. and Walmart, including a 2020 U.S. Government Accountability Office report that ranked Walmart. 1st place, Amazon ranked him 6th place.
The letter and request were made public on October 31st.
“This concern applies to many workers in the United States, including how minimum wages are set by law at both the federal and state levels, wage theft by employers, and unpredictable but inflexible labor. “Rights and automation, these are the most important issues that apply to the entire U.S. workforce,” the letter states.
De Schutter said his main concerns are the U.S. minimum wage, wage theft by employers, unpredictable but inflexible work schedules, the plight of undocumented workers, violations of union rights and automation. Stated.
“Most of what these companies do is not illegal. What they do is take advantage of loopholes in the system, such as misclassifying employees as independent contractors rather than employees. There are still many loopholes in the system, and the responsibility for that still lies with the US government, and we look forward to answers from the Department of Labor,” De Schutter said.
Based on the U.S. Bureau of Labor Statistics’ definition of the working poor, individuals in the United States who earn less than $14,850 per year are classified as working poor (6.3 million people, including 4.1% of the U.S. workforce).
The three companies and the government were asked to respond within 60 days of receiving the letter, and only Amazon responded, but de Schutter said Amazon’s response did not address some of the concerns raised in the letter. insisted. DoorDash responded after the letter was published, disputing the allegations and claiming it would respond in the coming weeks.
In his letter to Amazon, De Schutter cited the company’s current Department of Labor investigation into its high injury rates and record of anti-union behavior at its U.S. facilities.
DoorDash is one of the major gig platforms facing scrutiny over its classification of workers as independent contractors and how it determines pay based on active time rather than on-call time. . The company has opposed ordinances raising wages for its workers, citing complaints about low wages associated with the gig worker model.
Walmart, America’s largest employer, offers low wages in contrast to the company’s huge profits and the estimated net worth (more than $240 billion) of the company’s majority shareholders, the world’s richest family, the Walton family. It has been under intense scrutiny for many years. The company also has a long track record of actively union-busting efforts by worker organizations.
Amazon was the only employer to respond within 60 days, providing a letter from Brian Huesman, vice president of public policy who heads Amazon’s federal lobbying efforts.
In its letter, Amazon dismissed the low-wage claims and did not dispute the workers’ reliance on federal assistance programs. But the company argued that its wages make workers ineligible for federal assistance programs such as SNAP. The worker received federal aid before taking the job at Amazon while unemployed. Or you may receive assistance based on other circumstances, such as household size or a household member’s qualifying disability.
Amazon also disputed allegations that it violated workers’ union rights, but opposed the victory of workers who voted to unionize at an Amazon warehouse in Staten Island, New York in 2022. He reiterated that he would.
As of Oct. 1, the National Labor Relations Board had 222 unresolved or settled unfair labor practice charges against Amazon, according to the NLRB.
Amazon reportedly spent more than $14.2 million on anti-union consultants in 2022.
“Over the past 40 years, unionization rates in the United States have declined significantly more than in other OECD countries. Of course, this problem weakens workers’ bargaining position,” De Schutter said. Ta. “On the issue of respecting trade union rights, I think this is very shameful.”
He noted that the proportion of workers covered by collective bargaining agreements in the United States is far below the proportion in other wealthy countries, with 11.7% of workers in the United States on a 2018 basis, compared to 11.7% of workers in Italy and France, respectively. It said it covers 100% and 98% of workers. OECD data.
De Schutter said that with the federal minimum wage stagnant at $7.25, where it has remained since 2009, and 20 states with no higher minimum wage, there are serious challenges faced by women in the U.S. workforce. pointed out the inequalities.
“Wages in the U.S. have not kept pace with the rising cost of living at all. In many countries, wages are systematically adjusted to match rising costs of living. This is not the case in the United States,” De Schutter said. said. “Today, I was very surprised to see that the earnings of a worker with a high school diploma have decreased by a real 2.7% compared to 1979, which is nearly 50 years. This is truly astonishing. And this is, of course, during a period when worker productivity has declined.”