12/7/2023 0 Comments Track spike shortageInc (AMZN.O) has increased its average starting wage in the United States and plans to hire another 125,000 warehouse and transportation workers, an executive told Reuters this month. The pay hikes are not confined to Britain, despite the specific issues there. "If you're highly manual and you've not invested in any automation at all, you're wildly exposed to this," the executive said, adding that consumers could expect to see longer delivery times and some items unavailable for online order from early November if the situation did not improve. The executive said stores could also rationalise their online product ranges, dropping low value items that require a disproportionate amount of warehouse labour. A withdrawal of premium next-day delivery services could follow. The senior retail executive said that for online shoppers, standard delivery times could be extended from around five days to seven or 10 days. IMPLICATIONS FOR SHOPPERSĮxecutives said Britain's major supermarket groups and blue chip general merchandise retailers would cope better than others due to their deep pockets and higher levels of automation but smaller players would struggle. Compared to a national British minimum hourly wage of 8.91 pounds ($12.19) that entry level roles would have previously been offered at or around for over 23s, jobs were being offered at between 9 and 13 pounds per hour, with evening work offering a 60 pound bonus. Jobs website Totaljobs shows thousands of warehouse roles being advertised in that region. The crunch is being particularly felt in areas with a heavy concentration of warehouses and distribution centres, for example Milton Keynes and Northampton in central England. The retail sector's shift to online from physical stores also means more labour is needed in warehouses than ever. However, the furlough scheme closes at the end of September. Last year the shortfall was made up by people furloughed by the COVID-19 pandemic taking on part-time jobs.
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