Meanwhile, in Amazon Japan, it is a chaos. Drivers are getting shocked now that Amazon in this East Asian country announced it is lowering compensation rates, stating it is terminating contracts if the staff don’t accept the changes.
First, yes, you are right thinking that this means lower salaries, and it has actually started last month, April 5th, in particular. Whoa.
It’s difficult to continue working when what you get isn’t a salary increase, but a pay cut, and a huge number of workers have since reached out to the Fair Trade Commission of Japan.
Among them is a 33-year-old Amazon delivery driver working in the Kansai area. He was getting paid around $630 per month, and now that the brand-new regulation is in effect, he will instead receive around $510 per month. He is still covering gasoline and vehicle maintenance.
“My cash flow will really be tight for the time being,” the 33-year-old told Ridesharing Forum.
This driver, who refused to be identified out of privacy reasons, first learned of this new rule one evening in January after he received an email sent by “Amazon Hub delivery team.” The subject line read, “Important Notice,” the message started with this, “Dear partners.”
Amazon Hub, which is in operation in Amazon Japan, is an arrangement where Amazon delivers packages to drivers’ homes, and the drivers then transport them to customers.
The Amazon email stated that the payment amount for delivering packages would be dropped from around $0.80 per item to around only $0.60, with this taking effect starting April 5th. On top of this, drivers were required to work four times per week.
He was shocked by the notice, so he immediately called Amazon Japan to look for an explanation. The only response he got was it’s “a decision made by Amazon.”
Later on, the drivers received another email from the same address stating that the brand-new compensation rate took into account “regional operating costs, population density, and labor market conditions.”
The email did not state the terms and conditions concerning if a driver reacts, if not for the frequently asked questions or FAQ section indicating that their contract will get terminated if the drivers fail to agree to the regulation.
What’s worse, the man only started his job last fall, stating he is finding “less stressful because there are no unnecessary personal relationships.” Or maybe, he was, until this news.
Other drivers are saying, “This is unacceptable,” and “This is outrageous.”
Whenever they seek answers from FTC, they were only getting the same responses, that the decision came from Amazon.
Then, some drivers are saying what they’re getting is illegal.
“This unilateral pay cut isn’t just a gray area – it’s illegal, isn’t it?” one driver stated.
Hiroshi Nakazato, an associate professor of economic law at Waseda University and a former FTC officia, is siding with the drivers, saying that depending on the ongoing current circumstances, this decision from Amazon could be in violation of the revised sub-contract law that took effect last January.
The law prohibits clients from unilaterally setting prices without considering increases in costs from the part of contractors, such as fuel and labor expenses.
The professor is warning that “careful discussions [between the client companies and contractors] over compensation are becoming increasingly important for the industry as a whole.”
Even ridesharing media are mediating on behalf of the drivers, but they are reportedly receiving no response.
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