Amazon Seeks Efficiency While Investing in New Businesses

After decades of unreliable profits, Amazon has had four consecutive quarters with profits over $1 billion, and a net income of $2.9 billion in Q3. Although the numbers exceeded analysts’ expectations, the e-commerce giant also revealed that revenue in its core retail business was below expectations, with sales up 29 percent to $56.6 billion, and sales in its online store rose only 11 percent over the last year, half the pace of a year ago. As a result, discontent investors recently dropped shares 7 percent in aftermarket trading. Continue reading Amazon Seeks Efficiency While Investing in New Businesses

Worker Shortage Behind Amazon Pay Raise to $15 Per Hour

On November 1, Amazon will raise the minimum wage to $15 per hour for all its U.S. employees, including part-time workers and those hired through temporary agencies. More than 250,000 Amazon employees, including those at Whole Foods and 100,000+ workers hired for the holiday season, will benefit from the boost. The company also stated it would lobby to raise the federal minimum wage, which has been $7.25 per hour for almost ten years. Many interpret Amazon’s move as a response to a tightening labor market and political pressure. Continue reading Worker Shortage Behind Amazon Pay Raise to $15 Per Hour

California Court Changes Test to Determine Status of Workers

The California Supreme Court replaced the existing test for determining whether employees are independent contractors with another, simpler one used in Massachusetts and New Jersey. The former test relied on 10 factors, including the amount of supervision, to assess the company’s control over the worker. The new “ABC” test deems the worker an employee if he does a job that is part of the “usual course” of the company’s business. The ruling could have a profound impact on Uber and others in the so-called gig economy. Continue reading California Court Changes Test to Determine Status of Workers

Uber Reaches Deal With Benchmark, Loses Ruling in London

Former Uber chief executive Travis Kalanick and major investor Benchmark reached an agreement over board seats, paving the way for a multi-billion dollar investment led by SoftBank Group. This investment will give Uber resources to fend off its global rivals. Until recently, Kalanick and Benchmark were in a stalemate; the new agreement will add six directors and change voting in a way that will limit Kalanick’s power on the board. These changes are the aftermath of scandals that led the board to force Kalanick out. Meanwhile, Uber is facing setbacks in the U.K. regarding the status of its drivers. Continue reading Uber Reaches Deal With Benchmark, Loses Ruling in London

Seattle’s United Vote Greenlights Uber and Lyft Driver Unions

The Seattle City Council voted 9-0 to approve a bill allowing Uber and Lyft drivers to unionize. The city’s mayor, Ed Murray, who supports the workers’ right to organize, won’t sign due to his concerns about the unknown costs of administering the collective bargaining process. Even without his signature, it will become law, the first victory for the App-Based Drivers Association (ABDA) of Seattle, the organization of on-demand contract workers who joined with the local Teamsters union to lobby for the legislation. Continue reading Seattle’s United Vote Greenlights Uber and Lyft Driver Unions