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Amazon probably does not dictate pay directly. They just put in the contract that all workers must make X and get health insurance.


Apparently they do, and it includes the power to lower pay:

> In April, Amazon announced it would reduce the amount it paid for drivers from $17.25 to $16.00 an hour, according to the letter.

When what Amazon pays doesn’t cover the statutory minimums, the contract delivery companies have to make up the difference.


But is that a case of them dictating pay or just changing the formula for how they pay delivery companies?

If I tell IBM that I am not paying $100 an hour for their crappy consultants and will only pay $20, I still don't employ their consultant.

> In April, Amazon announced it would reduce the amount it paid for drivers from $17.25 to $16.00 an hour, according to the letter. This meant Amazon delivery companies were paying even more for drivers' wages.

To me, it just seems to be a reimbursement rate, not what the driver actually makes.




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