Half of Amazon, $AMZN, warehouse workers are struggling to pay their bills
Half of Amazon, $AMZN, warehouse workers are struggling to pay their bills.
Fifty-three percent of workers reported experiencing food insecurity in the past three months, and 48% struggled to cover rent or housing costs during the same period, according to a report from the Center for Urban Economic Development at the University of Illinois Chicago. Additionally, 56% of warehouse workers who sort, pack, and ship goods said they couldn't pay their bills in full.
"This research indicates just how far the goalposts have shifted. It used to be that big, leading firms in the economy provided a path to the middle class and relative economic security," said Dr. Sanjay Pinto, senior fellow at CUED and co-author of the report, in a statement Wednesday. "Our data show that roughly half of Amazon's front-line warehouse workers are struggling with food and housing insecurity and paying their bills. That's not what economic security looks like."
Despite working for one of the largest and most profitable companies in the U.S., Amazon warehouse employees appear to be so financially strained that one-third have relied on at least one publicly funded assistance program, such as the Supplemental Nutrition Assistance Program (SNAP). The report's data reveal a significant gap between what these workers earn and any measure of economic stability.
The researchers gathered survey responses from 1,484 workers in 42 states. The Ford Foundation, Oxfam America, and the National Employment Law Project supported the research.
Linda Howard, an Amazon warehouse worker in Atlanta, stated that the pay for employees like herself pales in comparison to the physical demands of the job.
"The hourly pay at Amazon is not enough for the backbreaking work. For the hard work we do and the money Amazon makes, every associate should make a livable wage," she said in a statement.
The report also highlights the financial destruction that can occur when warehouse workers take unpaid time off after being hurt or tired from the job.
Sixty-nine percent of Amazon warehouse workers said they've had to take time off to cope with pain or exhaustion related to work, and 60% of those who take unpaid time off for such reasons report experiencing food insecurity, according to the research.
"The findings we report are the first we know of to show an association between the company's health and safety issues and experiences of economic insecurity among its workforce," said Dr. Beth Gutelius, research director at CUED and co-author of the report. "Workers having to take unpaid time off due to pain or exhaustion are far more likely to experience food and housing insecurity and difficulty paying their bills."