Amazon, who I remind you is the second-largest private employer in the US, has an HR system so broken that thousands of workers get screwed out of pay, time off, leave, and benefits every day and often have to navigate a maze so dense and purposefully confusing that they effectively have no recourse, all so Jeff Bezos can make a few more billion.
A year ago, Tara Jones, an Amazon warehouse worker in Oklahoma, cradled her newborn, glanced over her pay stub on her phone and noticed that she had been underpaid by a significant chunk: $90 out of $540.
The mistake kept repeating even after she reported the issue. Ms. Jones, who had taken accounting classes at community college, grew so exasperated that she wrote an email to Jeff Bezos, the company’s founder.
“I’m behind on bills, all because the pay team messed up,” she wrote weeks later. “I’m crying as I write this email.”
Unbeknown to Ms. Jones, her message to Mr. Bezos set off an internal investigation, and a discovery: Ms. Jones was far from alone. For at least a year and a half — including during periods of record profit — Amazon had been shortchanging new parents, patients dealing with medical crises and other vulnerable workers on leave, according to a confidential report on the findings. Some of the pay calculations at her facility had been wrong since it opened its doors over a year before. As many as 179 of the companies’ other warehouses had potentially been affected, too.
Amazon is still identifying and repaying workers to this day, according to Kelly Nantel, a company spokeswoman.
That error is only one strand in a longstanding knot of problems with Amazon’s system for handling paid and unpaid leaves, according to dozens of interviews and hundreds of pages of internal documents obtained by The New York Times. Together, the records and interviews reveal that the issues have been more widespread — affecting the company’s blue-collar and white-collar workers — and more harmful than previously known, amounting to what several company insiders described as one of its gravest human resources problems.
Workers across the country facing medical problems and other life crises have been fired when the attendance software mistakenly marked them as no-shows, according to former and current human resources staff members, some of whom would speak only anonymously for fear of retribution. Doctors’ notes vanished into black holes in Amazon’s databases. Employees struggled to even reach their case managers, wading through automated phone trees that routed their calls to overwhelmed back-office staff in Costa Rica, India and Las Vegas. And the whole leave system was run on a patchwork of programs that often didn’t speak to one another.
Some workers who were ready to return found that the system was too backed up to process them, resulting in weeks or months of lost income. Higher-paid corporate employees, who had to navigate the same systems, found that arranging a routine leave could turn into a morass.
In internal correspondence, company administrators warned of “inadequate service levels,” “deficient processes” and systems that are “prone to delay and error.”
The extent of the problem puts in stark relief how Amazon’s workers routinely took a back seat to customers during the company’s meteoric rise to retail dominance. Amazon built cutting-edge package processing facilities to cater to shoppers’ appetite for fast delivery, far outpacing competitors. But the business did not devote enough resources and attention to how it served employees, according to many longtime workers.
“A lot of times, because we’ve optimized for the customer experience, we’ve been focused on that,” Bethany Reyes, who was recently put in charge of fixing the leave system, said in an interview. She stressed that the company was working hard to rebalance those priorities.
The company’s treatment of its huge work force — now more than 1.3 million people and expanding rapidly — faces mounting scrutiny. Labor activists and some lawmakers say that the company does not adequately protect the safety of warehouse employees, and that it unfairly punishes internal critics. This year, workers in Alabama, upset about the company’s minute-by-minute monitoring of their productivity, organized a serious, though ultimately failed, unionization threat against the company.
In June, a Times investigation detailed how badly the leave process jammed during the pandemic, finding that it was one of many employment lapses during the company’s greatest moment of financial success. Since then, Amazon has emphasized a pledge to become “Earth’s best employer.” Andy Jassy, who replaced Mr. Bezos as chief executive in July, recently singled out the leave system as a place where it can demonstrate its commitment to improve. The process “didn’t work the way we wanted it to work,” he said at an event this month.
In response to the more recent findings on the troubles in its leave program, Amazon elaborated on its efforts to fix the system’s “pain points” and “pay issues,” as Ms. Reyes put it in the interview. She called the erroneous terminations “the most dire issue that you could have.” The company is hiring hundreds of employees, streamlining and connecting systems, clarifying its communications and training human resources staff members to be more empathetic.
But many issues persist, causing breakdowns that have proved devastating. This spring, a Tennessee warehouse worker abruptly stopped receiving disability payments, leaving his family struggling to pay for food, transportation or medical care.
“Not a word that there had ever been a problem,” said James Watts, 54, who worked at Amazon in Chattanooga for six years before repeated heart attacks and strokes forced him to go on disability leave. The sudden loss of his benefits caused a cascade of calamities: Because he was without pay for two weeks, his car was repossessed. To afford food and doctors’ bills, Mr. Watts and his wife sold their wedding rings.
“We’re losing everything,” he said.
And understand that despite staggering profits in the hundreds of billions of dollars, Amazon still says it's "working" on fixing these HR issues that are years and years old, having screwed over tens of thousands of its employees who have yet to get their owed back pay.
Odds are they never will see it, because Amazon can simply make the problem go away with the billions it has...except for actually paying its warehouse workers.
The largest company on earth can't fix its HR systems.
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