Amazon India workers' union calls for better wages amid LPG curbs

Amazon India workers' union seeks wage hike and incentives as LPG shortages and rising living costs strain warehouse workers amid West Asia disruptions

Amid rising cost pressures triggered by the ongoing conflict in West Asia, the Amazon India Workers Union (AIWU) has penned a letter to the e-commerce giant asking the company to revise wages and offer improved incentives to support warehouse workers. 

 

However, Amazon has said that AIWU does not represent its warehouse workers. 

 

Workers across companies, and the gig ecosystem at large, are grappling with higher expenses, as supply of liquefied petroleum gas (LPG) has been limited due to disruptions at the Strait of Hormuz, a strategic maritime chokepoint. 

 

In its letter, AIWU said that a significant number of warehouse workers at Amazon are migrants who live in rented accommodations without permanent address proof, which prevents them from accessing LPG connections through formal gas agencies. As a result, they are forced to depend on the open market, where cooking gas is sold informally on a per-kilogram basis, according to the union. Pawan Singh Sisodiya, general secretary of the union, said the association represents over 320 workers. 

 

“Earlier, workers were able to manage by purchasing gas at ₹100-110 per kg. However, prices have now surged to ₹350-400 per kg, and in many areas, gas is not even easily available. Workers are often forced to travel 10-15 km just to find a cylinder, only to pay significantly higher prices. At the same time, most workers earn an in-hand salary of around ₹12,000 per month,” the union said, adding that it has become challenging for workers to maintain their livelihoods.

 

In addition to cooking gas prices, the rising food prices are also affecting the workers, the union added. “Workers report that a single roti in nearby eateries has increased from ₹8-12. At the same time, even food inside the warehouse canteen is becoming more expensive, with the price of a samosa rising from ₹10-15,” it claimed. 

 

According to AIWU, some workers are even considering returning to their hometowns as they can no longer sustain themselves in the cities, amid rising living costs.

 

Business Standard sent an email query to Amazon asking about measures the company plans to take. In its response, the company said that the AIWU does not represent the warehouse workers at Amazon. 

 

Industry sources also concurred that AIWU is neither a registered, nor a recognised union.

 

“It is disappointing that an external group — one that has nothing to do with any of the thousands of associates working at Amazon — is attempting to create a misleading narrative that draws undue attention to Amazon on an issue affecting businesses and society around the country and the world. The fact is: the safety, health, and well-being of our associates remain our top priority, and tens of thousands of associates at Amazon’s industry-leading fulfilment centers across India continue to have access to hot meals at the same nominal prices as before, despite the recent increase in input costs,” Amazon said in an email response.

 

“We are closely monitoring the situation and working relentlessly with our partners and vendors to ensure uninterrupted services to associates and customers across the country,” it said.

 

The company said the issue is not unique to Amazon and reflects a broader industry concern. Amazon provides fair and competitive wages and regularly reviews its wage structures against relevant industry benchmarks, while also regularly hearing from its associates, it added. 

 

“The recent spike in LPG and related input costs is not being passed on to associates, and our menu prices have remained unchanged. We regularly hear from associates through robust listening mechanisms, including VoA boards, focus group discussions, and Gemba walks, and remain committed to addressing their feedback,” the company said.