Levi CEO admits Amazon plans increase salaries 20 dollars an hour is forcing him to rethink his wages at a time of competitiveness in the labor market.

Levi Strauss and Co. he has been selling jeans for 168 years, but in 2021 he is finding it particularly difficult to find workers, due in large part to Amazon.

"There is no doubt that hiring is right now a challenging issue," the company's CEO, Chip Berg, admitted in an interview with the Associated Press agency.

Although Berg said Levi's is "an aspirational company to work for," he acknowledged that they are having some trouble finding staff for their stores and distribution centers in today's job market.

"We're considering what to do right now, with wages going up," he admitted. "Honestly, we have people around the corner in the distribution centers of Amazon, a company that is not afraid to pay 20 dollars (16.4 euros) an hour," he added.

Levi CEO admits Amazon plans increase salaries 20 dollars

A spokesman says the jeans company has succeeded in recruiting and keeping its workers in its distribution centers based on the company's value, including working for "an iconic brand with strong values," health insurance, retirement benefits, an add-on program and other matters.

"We believe that these compensation and benefit packages will allow us to remain a desired company," adds the spokesperson.

Levi's CEO's comments are the latest sign that Amazon could be setting a new minimum wage in the United States.

In fact, there are data showing Amazon's effect on the US labor market.

"A study shows that the increase in wages meant an increase of 4.7% in the average hourly pay in other companies in the same market," said the CEO of Amazon, Jeff Bezos, in his last conference with investors, citing studies from U.S. universities such as Berkeley and Brandeis.

Levi CEO admits Amazon plans increase salaries 20 dollars

The current minimum wage in the United States, established in 2009, is $ 7.25 per hour, although Amazon has been paying a starting salary of $ 15 (12.3 euros) since 2018.

"When we set the $ 15 minimum wage we did it because we wanted to lead in wages and not just go with the group," Bezos said.

This decision truly helped Amazon's expansion, but the disruption of the pandemic has driven even more changes in the labor market in sectors ranging from trade to food services.

Levi CEO admits Amazon plans increase salaries 20 dollars: Like Levi's, sportswear brand Under Armour specifically cited Amazon as a catalyst in its wage hikes.

"The reality is that from a competitive point of view in hiring, we know that we compete for talent not only with our own industry, but with companies like Amazon," Stephanie Pugliese, president for America of Under Armour, told Bloomberg.

In 2020 alone, Amazon hired more than 500,000 workers, most of whom will earn more than $ 16 an hour, in addition to a competitive benefits program.

In May, Amazon announced the hiring of another 75,000 logistics and shipping workers in the United States and Canada with a down payment of $ 17 (14 euros) per hour and a first bonus of $ 1,000 (820 euros).

As Miami, Florida, chef Phil Bryant told the Washington Post: "If I can get $ 17 an hour in an Amazon warehouse and only $ 14 in a kitchen, a much hotter, stressful and intense job, why would I work here?".

Levi CEO admits Amazon plans increase salaries 20 dollars

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Order a burger and get home on a drone, closer: Restalia launches its pilot test in Zaragoza for home delivery

The idea of using drones as another tool in the delivery area is not new. Google has already tested it with Wing (born in 2014) and even parcel companies like DHL have drones for last mile delivery. In the field of home delivery of cooked food, developments in the United States have focused on drones are a support for riders, so that they do not have to return to the restaurant for their next delivery. In Spain, the restaurant group Restalia, which includes brands such as 100 Montaditos, TGB, La Sureña, Panther Sandwich & Juice Market, DPM and Pepe Taco, has launched its pilot test to test the delivery service without intermediaries.

As reported by the franchise in a press release, for now the tests have been limited to the base of Hera Drone Hub in Zaragoza, the only test area for unmanned vehicles in urban area and CTR in Europe and only with TGB burgers. The objective is to investigate the feasibility of using drones to deliver cooked food at home while maintaining the quality of delivery.

"The experience gained with these tests will serve to trace the next steps, which will allow users, cities and operators to have the useful and necessary information to carry out innovative projects safely," says José María Capitán, founder and executive president of Restalia.

“The most immediate reality would be the delivery in areas of lockers or reception points, under the supervision of a person, or in homes that have a garden. The most important thing right now is to validate the needs, see sustainability and be well prepared,” says Isabel Buatas, director of Hera Drone Hub in the statement.

Where do you place those reception points? The option to enable specific areas on the roofs of buildings is positioned as one of the easiest ways to implement. However, it is not without controversy. First of all, not all communities of owners have access to their roofs, in addition to a change in the legislation that regulates their use would be required.

On the other hand, and despite the recent regulatory update of the use of drones in Europe, home delivery services with drones would not yet be legal.