[HN Gopher] Instacart to cut 1,900 jobs, including its only unio...
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       Instacart to cut 1,900 jobs, including its only union roles
        
       Author : Jerry2
       Score  : 142 points
       Date   : 2021-01-21 19:23 UTC (3 hours ago)
        
 (HTM) web link (www.bloomberg.com)
 (TXT) w3m dump (www.bloomberg.com)
        
       | thismodernlife wrote:
       | I don't know much about Instacart as I live in Scotland but what
       | they have done (Andrew Kane in particular) for the Ruby on Rails
       | community through their open source is incredible. Kudos.
        
         | jherdman wrote:
         | I wasn't aware they had done anything. Do you have an article
         | on the matter?
        
           | thismodernlife wrote:
           | Check out their GitHub
           | 
           | https://github.com/instacart
        
       | sct202 wrote:
       | tldr; Instacart is shifting work to the grocery store's employees
       | to pick and pack grocery orders instead of having Instacart
       | employees do it.
       | 
       | FWIW, the union referenced is at a Marianos, and Marianos (and
       | all Kroger owned groceries) are unionized already. So the work is
       | shifting from one union to another union.
        
       | dfxm12 wrote:
       | _Instacart Inc. is cutting about 1,900 employees' jobs ... as the
       | company seeks to boost its ranks of contract workers._
       | 
       | It's important to note that "employees", in the US, are entitled
       | to benefits [0] that "contractors" aren't. As more and more
       | employers try to glorify the gig economy or fire employees in
       | favor of contractors, it is more important than ever to make sure
       | that critical benefits, especially affordable health coverage,
       | are uncoupled from employment status.
       | 
       | 0 - https://www.investopedia.com/articles/personal-
       | finance/12091...
        
         | worik wrote:
         | It should be that if:
         | 
         | * All your work is for one firm
         | 
         | * You use their tools and/or premises to do the work
         | 
         | * You have no realistic opportunity to work some where else -
         | either a restriction in your contract or due to the hours that
         | you work
         | 
         | Then no matter what it says on your contract you are a
         | employee.
         | 
         | That used to be the law in Aotearoa for everybody. But when
         | Peter Jackson turned rouge they changed the law, personally for
         | him and Warner Brothers, to take those rights from people
         | working on films. And computer games.
         | 
         | https://www.hollywoodreporter.com/news/nz-government-changes...
         | 
         | Treating people as interchangeable parts, like machines, is
         | simply evil.
        
           | snarf21 wrote:
           | You missed the ability to negotiate the price of your work
           | and not face consequences for not taking jobs that pay less.
        
           | JohnGB wrote:
           | That is essentially how it works in many European countries,
           | but even stricter. In the Netherlands for example, if 70%+ of
           | your work is for a single employer and the number of hours is
           | above some reasonable threshold, then you're an employee.
        
           | klmadfejno wrote:
           | There was a time when janitors were employees. They're not
           | INDEPENDENT contractors, but they're still filling a much
           | shittier niche than in decades prior. Mostly we just need
           | labor protection laws in general and non-employer provided
           | health care I'd say.
        
           | raylad wrote:
           | One effect of your 3rd point is that companies decide to
           | reduce the number of hours they offer to employees to keep
           | them just under whatever threshold is created.
           | 
           | This happened in NYC with adjunct professors years ago,
           | according to one of my friends who was working as one. If
           | they wanted to avoid paying benefits they had to reduce the
           | number of hours per semester, and it became uneconomical to
           | keep doing the job for him since the amount of preparation
           | was almost the same but the pay was much reduced.
        
             | clairity wrote:
             | that's why functions in any public policy should be
             | continuous to remove obvious points of stress and leverage
             | used for gaming the system. federal income tax is this way,
             | even as the derivative function, tax rate, is discontinous
             | (bracketed).
        
             | Pet_Ant wrote:
             | Wouldn't a simple fix be to say that if you have two part
             | time positions at the same time for the same skill set you
             | must merge them into a single full time one.
             | 
             | Sure, it's heavy handed, but if they are gonna play games
             | we can't leave things to trust and common sense.
        
               | LeifCarrotson wrote:
               | What do you mean by "merge" them? Have two employees
               | (more accurately, 4 part-time 29.5-hour employees doing
               | the work of 3 full-time 40-hour employees) share
               | benefits: "You get health insurance this month and I get
               | it next month, you can contribute to your 401k this month
               | and I can next month" kind of thing? Or prohibit you from
               | hiring more than 3 'unnecessary' part-time employees?
               | 
               | I'm abundantly familiar with the sort of antics that are
               | involved. For another example, my wife used to work in
               | childcare. To cover 8 classrooms Monday to Friday from
               | 7:30 to 5:30 with at least one lead and one aide, plus
               | two floaters (900 hours per week) they employed
               | approximately 36 part-time workers (several were high
               | school/college study programs working 16 or 24 hours per
               | week) and no full-time workers. You're suggesting that
               | they should be mandated to instead hire 24 full-time
               | workers and pay benefits?
               | 
               | In actuality, every teacher and aide except the owners
               | used to be mandated to work no more than 29.5 hours per
               | week. You often had short stints of working from after
               | nap time at 2pm to 5:30pm just so that you could make
               | hours (which sucked when she was driving 30 minutes at
               | 16mpg to make $10.75/hour with gas at $4/gallon). Some
               | people got scheduled mornings, some got afternoons, but
               | you didn't dare come in for a full day because then
               | they'd have to give benefits. It was amazing how paranoid
               | and irate the front office would get at 5:31pm when
               | couple parents were late for pick-up and they had to keep
               | staff around for more than their scheduled hours. If
               | anyone hit more than 30 hours, they'd shuffle the
               | schedule so they were no longer working afternoon shifts
               | that might go long, and this was all complicated by
               | frequently requested shift trades among the underpaid and
               | underemployed people involved; you weren't allowed to
               | cover for anyone if you'd gone over 30 hours in any of
               | the previous 4 weeks. And it was a nightmare for anyone
               | who tried to have a second job that might need you
               | between 7:30 and 5:30, you wouldn't know for sure until
               | Friday night what you'd be asked to work Monday morning.
               | And they weren't just turning screws in a factory, this
               | also had negative effects on the kids they were teaching
               | when they'd wake up from nap time to find a relative
               | stranger watching them.
               | 
               | Given the demographic, they much preferred shuffling
               | around colorful magnets on a calendar to spreadsheets or
               | databases, and there was a lot of shuffling indeed. But
               | I'd hate to imagine what it would be like to code an
               | automated time clock for that byzantine system...it would
               | be generous to call it a game.
        
               | ghufran_syed wrote:
               | how exactly would you "merge" them?
        
               | Pet_Ant wrote:
               | Bundle the hours and responsibilities into a single full-
               | time position.
               | 
               | I mean if you have first-year "Introduction to
               | Algorithms" as a PT, and another PT "Introduction to
               | NetWorking" then they can easily be taught by a single
               | person. Create an FT where the job is to teach both.
        
               | lacker wrote:
               | What I have seen is jobs limited to weird amounts like 29
               | hours a week. You can't really combine two of those into
               | one 58-hour-a-week position.
        
           | 0xfaded wrote:
           | This was done in the UK and parts of Europe basically to
           | appease the taxman.
           | 
           | See https://www.netlawman.co.uk/ia/ir35
           | 
           | The consequence, as partially intended, is that companies are
           | hesitant to work with individual contractors. The problem is
           | that if you want to start a consultancy, you're going to have
           | a fun time finding your first client.
           | 
           | The correct solution is to decouple employment from
           | taxation/benefits/pension/health-care/everything.
        
           | stevesearer wrote:
           | We employ people that work less than 5 hours/week who get to
           | make their own schedule and work from their homes. Even
           | though all of them have other jobs and use it as a small side
           | hustle, we still classify them as employees.
           | 
           | Many people choose to forget that there is such a thing as a
           | part-time employee.
        
           | amanzi wrote:
           | I think your third point is key. For the first two points I
           | believe that you can still be a contractor if you are
           | choosing to do all your work for one firm and you're using
           | their tools and premises to do the work.
        
           | lacker wrote:
           | _You have no realistic opportunity to work some where else -
           | either a restriction in your contract or due to the hours
           | that you work_
           | 
           | I think this part would need to be more specific. A while ago
           | I worked as a low level employee at the Gap in Boston, and
           | the rules were that nobody could work more than 29 hours per
           | week so that nobody was categorized as full time, but you
           | also had to be available whenever you were scheduled.
           | However, many people had two jobs, despite this restriction.
           | They would be asking other employees to swap shifts every
           | week and sometimes failing but usually making it work.
           | Nowadays, with Uber, it's a lot easier to fill in an extra 15
           | hours a week that you'd like to work. So who could really
           | claim to have "no realistic opportunity to work somewhere
           | else" if any odd hours could be filled as an Uber driver or
           | similar gig worker?
           | 
           | It's important to recognize that the different ways of
           | scheduling part time work are really different. 20 hours a
           | week that is mandated with three days notice by your employer
           | really sucks. 20 hours a week that you choose with the Uber
           | app is far better.
        
             | a_wild_dandan wrote:
             | Yeah, how do we get more specific here? I had a few ideas,
             | but they all seemed similarly nebulous or else might create
             | suspicious discontinuities. [1]
             | 
             | I wonder if categorizing contractors v. employees is like
             | recognizing porn. "I know it when I see it" says Justice
             | Stewart.
             | 
             | 1. https://danluu.com/discontinuities/
        
         | Sparkyte wrote:
         | No one listened when I said Prop 22 is going to backfire hard.
         | Bet the 1900 jobs are in California alone.
        
         | ppeetteerr wrote:
         | There are advantages in countries with socialized healthcare to
         | be an independent contractor (e.g. Canada). In the US, not so
         | much.
        
         | e40 wrote:
         | ... and if any of these contractors are in CA, then they (edit
         | to add this: Instacart) will likely be sued by the EDD. The EDD
         | would view this as a blatant way to get out of paying benefits
         | (which it does appear to be).
        
           | darkwizard42 wrote:
           | It isn't at all though if you read the article. They are
           | instead partnering with stores to have the store employees
           | fill orders from Instacart instead of Instacart's employee
           | "shoppers."
           | 
           | The model of Instacart has evolved, it went from any shopper
           | going into any store and getting you what you need to having
           | the stores actually be in on it and using Instacart as an
           | extension to increase demand and orders (think how DD
           | partners with restaurants for delivery vs. the old Postmates
           | model where they could just send someone in to order your
           | food for you)
        
         | s3r3nity wrote:
         | I'm not sure why the onus is on the business here, rather than
         | the individual: when deciding to be a "contractor" vs.
         | "employee," I should & do take those risks and decisions into
         | account, and weigh the trade-offs.
         | 
         | You want 401k match and other nice benefits? Then become a
         | full-time employee somewhere. You like more flexibility and
         | independence, given the trade-offs? Then go with independent
         | contracting.
        
           | Finnucane wrote:
           | The whole point of the sharecropper economy is to make it so
           | a lot of people don't really have much choice.
        
           | pfooti wrote:
           | Because, given the opportunity and no regulation, companies
           | will always push to make all employees contractors.
           | Independent contractors represent a significantly lower
           | liability on the balance sheets. Except that those lower
           | liabilities are just externalizing the cost of employment to
           | other systems (health and unemployment insurance, etc). If we
           | don't regulate corporations, they will just race to the
           | bottom in how they treat labor.
        
             | s3r3nity wrote:
             | I'll grant that I agree this is probably true for low-
             | skilled labor where supply is high and interchangeable.
             | 
             | I don't think this is the case for low-supply, high-skill
             | labor (ex: doctors, engineers, etc.) as well as certain
             | low-supply trades (HVAC, welders, etc.) Then bargaining
             | power can properly counteract any such forces.
        
               | HarryHirsch wrote:
               | Acting is certainly a high-skill profession, but even the
               | in-demand ones are members of the Screen Actors Guild.
               | They know why it's a good idea.
        
               | worik wrote:
               | "low-supply, high-skill labor (ex: doctors, engineers,
               | etc.)"
               | 
               | Doctors, I know, have powerful unions and associations.
               | Very, very, powerful.
        
               | TaylorAlexander wrote:
               | This is absolutely true for engineers. While I did have
               | employer provided healthcare, I was hired as a contract
               | worker at Google X on their flagship robotics research
               | project as a mechatronics prototype engineer and later a
               | test engineer. I worked for two years alongside full time
               | employees on the same exact things as full time
               | employees. But they got stock, parties, and other special
               | treats that contractors did not. Almost 50% of the team -
               | I think the legal limit - were contractor roles.
               | 
               | While I do appreciate that from their perspective it
               | makes sense, it is also true that if we don't fight to
               | protect workers, all jobs will go this way. That's
               | actually why what an up-thread comment said is a great
               | idea. If we decouple important things like healthcare
               | from employment, then everyone gets important quality of
               | life care without employers having to restrict benefits.
               | If we do not fight for ourselves, we will end up in a
               | situation where most people cannot access the basic
               | necessities of life. Already in the US millions of
               | Americans are without healthcare.
        
               | makoz wrote:
               | What do you think about sports leagues and the fact that
               | the major ones in US have unions for their players? (low
               | supply, high demand)
        
               | glitchc wrote:
               | The AMA is a union in all but name [1] and quite powerful
               | [2]:
               | 
               |  _By money spent, the AMA is the nation's third largest
               | lobbying organization of the last 20 years, behind only
               | the US Chamber of Commerce and the National Association
               | of Realtors._ [1]
               | 
               | [1]
               | https://www.forbes.com/sites/johngoodman/2014/09/03/the-
               | doct...
               | 
               | [2] https://www.theguardian.com/commentisfree/2019/jun/06
               | /why-we...
        
               | esoterica wrote:
               | What does lobbying have to do with whether or not an
               | organization is a union? The Chamber of Commerce
               | obviously isn't a union.
        
               | bazooka_penguin wrote:
               | American software engineers should form a special
               | interest group. Not sure why so many people are resistant
               | to the idea. Lobbies too. Its strange that an otherwise
               | left leaning demographic acts virtually conservative when
               | it really counts towards their labor
               | 
               | Edit for word choice
        
             | splistud wrote:
             | Perhaps. But also, given the regulation, you remove
             | opportunity for those that are looking for the type of
             | employment you discredit from accepting it from employers
             | that want to offer it. I very much appreciate the ability
             | to step into the gig economy when I need to. I assume you
             | mean well, but I wish you and other's who agree with you
             | would kindly butt out and let me make my own decisions.
        
           | SwiftyBug wrote:
           | If only it was a matter of choice rather than a very planned
           | uberization of the workforce.
        
             | splistud wrote:
             | If only you could come reasonably close to proving that.
             | 
             | Let's say you were correct. Want to stop it? Regulation is
             | just a wall with holes. The only way to stop it is to
             | reduce the labor force.
             | 
             | If this is actually a plan, it's conception requires that
             | the labor force is going to expand rapidly. In a tighter
             | labor market, companies are much better off locking up
             | labor rather than nickel and diming costs. So any said evil
             | plan is an add-on to opening the gates to immigration, both
             | legal and illegal.
        
           | heavyset_go wrote:
           | The point is that companies are eliminating full-time
           | employment roles for employees and replacing them with roles
           | for contractors. That means there are less full-time
           | employment opportunities for W-2 employees, and an increasing
           | amount of roles for 1099 contractors.
        
           | rossdavidh wrote:
           | Speaking as a person who intentionally chooses to be a
           | contractor, and refuses offers of permanent employment
           | because I prefer to be a contractor, I respectfully disagree.
           | I have these options because being a computer programmer
           | (lately) gives me options. In any occupation where it is a
           | "buyer's market", the employee has no such option.
           | 
           | Now, whether things like healthcare and retirement should be
           | linked to employment in the first place, is a real and valid
           | question. But currently it is, and the distinction between
           | "employee" and "contractor" seems bogus in a lot of cases.
        
             | willcipriano wrote:
             | When you say it gives you more flexibility do you mind if I
             | ask what do you mean?
             | 
             | I'm in the US and generally my employment has been at will,
             | either of us are free to end the arrangement at any time.
             | Having a specific date where that arrangement ends doesn't
             | seem to be more flexible, if I wanted to leave in a month I
             | would just give my notice and leave.
             | 
             | I'm in the same position as you career wise and I often get
             | offers to join contract roles and they are very unappealing
             | to me. When I do the math on the benefits I'd lose out on
             | and the additional taxes, rarely are these offers
             | competitive let alone when I factor in the greater
             | volatility inherent in the arrangement and the lack of
             | unemployment benefits. Also in my experience the recruiters
             | pushing the contract roles are the most desperate and
             | aggressive, that doesn't lead me to believe these roles are
             | all that high quality.
        
               | lacker wrote:
               | Maybe one month you want to work 40 hours a week, the
               | next you want to work 20 hours a week, the next you want
               | to work 40 again. That's quite hard to arrange with a
               | traditional job, but often possible with contract work.
               | Especially when you work somewhere that has a few
               | contractors doing similar stuff and you can just arrange
               | amounts of work between you and your peers.
        
               | nicbou wrote:
               | I'm not OP, and I live in a different country, but my
               | answer is unlimited vacation between contracts. Software
               | development contracts cover my yearly expenses in 3
               | months. I have the rest of the year to myself if I want
               | to.
        
               | wonderwonder wrote:
               | I just transitioned to contract based. The pay is
               | significantly higher than if I was a salaried employee.
               | In addition all of my salary comes to me, pre tax. This
               | allows me greater flexibility regarding what I do with my
               | $. For example I will use all income in the first half of
               | the year to pay off all of my debt (2 cars, credit cards
               | and money down for a house refinance). The second half of
               | the year I will save for taxes and at that stage my
               | overall monthly bills are massively lower. I get my
               | health insurance via my wife who is salaried. In addition
               | it allows me to write off a lot of things for taxes.
               | Getting paid through my company gives a lot of tax
               | benefits.
               | 
               | The contract is for a year, with the option to extend.
               | The job I just left was salaried but actively laying
               | people off. So while both positions have risk, the
               | contracted one provides a much higher income and
               | flexibility to use it as I see fit. Plus any work I do on
               | the weekend for the contract position is paid, as a
               | salaried employee its not.
        
               | mjcohen wrote:
               | Key point: "I get my health insurance via my wife who is
               | salaried."
               | 
               | What if you had to provide your own health insurance?
        
             | rootusrootus wrote:
             | Would you mind sharing why you prefer to be a contractor?
        
           | true_religion wrote:
           | Because they don't give you that flexibility. They require a
           | high number of working hours to stay in the system, and
           | require you to work peak hours anyways.
           | 
           | No one really gains as a contractor working 39 hours a week
           | without benefits.
        
         | vladojsem wrote:
         | i am really curious about the labor market in the few months.
         | especially here in eu, the companies were holding their
         | employees due to state subventions. that can end up badly when
         | it is over.
        
       | theinverseidea wrote:
       | I always get a kick when businesses do exactly what the numbers
       | said they would do and other people act surprised.
        
         | jasonshaev wrote:
         | To be fair, there were only TEN unionized employees at
         | Instacart who were let go (out of 1900 jobs cut). With such a
         | small percentage of the workforce unionized, it's highly
         | unlikely those employees enjoyed any additional bargaining
         | power or job security that could result from having a
         | significant fraction of the workforce unionized.
         | 
         | With such a small fraction I don't think you can draw
         | conclusions in either direction.
         | 
         | [edit] In other words: these employees would have lost their
         | job regardless of their union status [/edit]
        
           | tyingq wrote:
           | _" In other words: these employees would have lost their job
           | regardless of their union status"_
           | 
           | 10 unionized employees out of thousands isn't enough critical
           | mass to count as a union for the things that matter. The
           | power is in numbers.
        
             | ardy42 wrote:
             | > 10 unionized employees out of thousands isn't enough
             | critical mass to count as a union for the things that
             | matter. The power is in numbers.
             | 
             | That may be so, but laying off those 10 could be a strategy
             | to kill the union in the crib by keeping the number from
             | ever getting to the thousands. Employees faced with future
             | unionization votes may vote against the union _because they
             | 're afraid management will find a way to lay them all off
             | if they vote for it_, before they're strong enough to
             | resist.
        
             | jasonshaev wrote:
             | I agree (hence my original statement: "With such a small
             | percentage of the workforce unionized, it's highly unlikely
             | those employees enjoyed any additional bargaining power or
             | job security that could result from having a significant
             | fraction of the workforce unionized. With such a small
             | fraction I don't think you can draw conclusions in either
             | direction.")
             | 
             | However I then, uh, went on to draw a conclusion anyway in
             | contradiction of my own statement saying we shouldn't draw
             | conclusions because of the sample size. Methinks it's time
             | for more coffee :).
        
           | [deleted]
        
           | theinverseidea wrote:
           | Oh I was referring to the unions and the other job losses as
           | well -- I cant imagine the new federal minimum wage makes it
           | easier to employ an army of low wage workers who can come and
           | go at will.
        
           | moate wrote:
           | >>In other words: these employees would have lost their job
           | regardless of their union status
           | 
           | IDK that we can make that assumption. Instacart management
           | has made themselves out to be anti-unionization (a common
           | view by management in the US). If you're an anti-union
           | manager, and you're about to make a massive, 2,000 person
           | layoff declaration, you're going to make sure the unionized
           | group of 10 people is on that list. Can't let that sort of
           | thought spread to other locations, and this serves as a good
           | example to those trying to organize in the future. It's easy
           | to avoid a NLRB loss if you bust the union as part of a
           | larger layoff.
           | 
           | The only thing that would have been telling is if they had
           | announced a huge layoff and NOT taken out the union shop.
        
             | jasonshaev wrote:
             | You're right -- my last statement was a bit too much of a
             | leap. In this case I wonder if it would have even mattered
             | if a significant percentage of the workforce was unionized.
        
               | moate wrote:
               | It might have. Unions are political forces. You get a few
               | thousand people calling and screaming at politicians and
               | news outlets to create a negative stink about it, maybe
               | the company looks at other ways to make themselves more
               | financially healthy. I'm not saying it would, just that
               | it could. That's a big part of the appeal of a union,
               | having a group of people with diverse backgrounds and
               | experiences able to bring those backgrounds to the table
               | to help in fights against management.
        
       | xrd wrote:
       | From what I understand from these comments, it sounds like
       | Instacart is going to leverage labor at union staffed stores,
       | like Kroger, to fulfill on its business opportunities.
       | 
       | This seems like a clever form of arbitrage, or shall we call it,
       | disruption?
       | 
       | Is this the new frontier (or perhaps I'm just late to the game in
       | understanding it) where larger online businesses (like Amazon)
       | shift away from full time employment (with the costs associated
       | with it) and let some other "local" or "brick and mortar" legacy
       | businesses try to keep those employees with living wages and
       | healthcare employed while those same "frenemies" (purchasing from
       | them, but also competing with them) avoid those costs?
       | 
       | I spoke to an accountant friend the other day who works for a
       | local independent grocery store. They are really trying to keep
       | their low wage workers on payroll, despite having revenues cut in
       | half because of COVID. Everyone is shopping at Amazon+WholeFoods.
       | If those workers lose their jobs, will they be homeless? I don't
       | think consumers care or think about them, even though they might
       | be their neighbors.
        
         | darkwizard42 wrote:
         | Less arbitrage and more benefit to Instacart/the stores.
         | 
         | Who probably knows a store better: random Instacart shopper or
         | employee of the store?
         | 
         | In the end, Instacart gets faster fulfillment and more accurate
         | fulfillment for a price (whatever cut Kroger etc. take to do
         | this). The stores get direct access to the order data and can
         | then stock their stores better, capture the extra demand, and
         | keep their employees engaged in revenue generating work
         | (Instacart probably pays the store for this service of in-house
         | shopping)
        
         | adamcstephens wrote:
         | Not all positions at Kroger are unionized.
         | 
         | Amazon already outsources like this for last mile deliveries.
        
         | windthrown wrote:
         | Keep in mind that after Prop 22 in California, some grocery
         | chains (Vons, Albertsons) are replacing their employees with
         | contractors:
         | 
         | https://www.washingtonpost.com/business/2021/01/06/vons-albe...
        
       | [deleted]
        
       | HarryHirsch wrote:
       | Dumb question: is this in any way related to California
       | Proposition 22?
        
         | bbatsell wrote:
         | It is entirely due to Prop 22.
        
         | s3r3nity wrote:
         | The article loosely hints at this context, but provides no
         | evidence either way.
         | 
         | Looking at Instacart revenue / margin numbers, they hit
         | profitability _for the first time ever_ in April 2020 alongside
         | the COVID pandemic. Further, margins are CRAZY THIN - meaning
         | maintaining profitability is really difficult in an environment
         | of increasing competition from Uber / Google, among others.
         | (Ex: Uber bought Postmates, as the latter had similar margin
         | difficulties.)
         | 
         | My read is that this type of move was planned as an option for
         | Instacart for a while, and Prop 22 maybe pushed up the timeline
         | slightly.
         | 
         | EDIT: not sure why I'm getting downvoted. I know the article
         | tries to build this narrative as much as possible (without even
         | mentioning Prop 22) but then doesn't even provide the financial
         | details that show that Instacart has really tight margins - and
         | if they're trying to IPO, at this rate they're going to stumble
         | there.
        
           | huac wrote:
           | The article doesnt mention Prop 22 by name but the last
           | paragraph is very clearly about Prop 22
           | 
           | > San Francisco-based Instacart and other gig companies
           | including Uber Technologies Inc. and Lyft Inc. last year
           | bankrolled a successful $200 million campaign to pass a
           | California ballot measure exempting them from a state law
           | declaring workers were employees if they did work in the
           | "usual course" of their bosses' business. Emboldened by that
           | victory, the companies are pushing for similar changes
           | elsewhere that would make it easier to claim workers are
           | contractors.
        
             | s3r3nity wrote:
             | Completely agree, but I would argue that the article is a
             | bit deceptive in that it's trying to build that context
             | without any evidence or data that this is the driver for
             | Instacart's move.
             | 
             | correlation <> causation, etc. etc.
        
       | kirillzubovsky wrote:
       | At the end of the day, the people will get hired back by somebody
       | who needs their groceries delivered. Meanwhile, this makes Insta
       | more of a software company, and lets the stores deal with hiring.
       | 
       | The market is going to love this because it will de-risk
       | Instacart. Grocery stores should love this because they will be
       | able to increase utilization of their employees. And of course
       | employees, despite the popular narrative, will actually gain more
       | power because they would have more localized work, and less
       | competition. It's a win-win-win.
        
       | breck wrote:
       | I would love to live in a world where we do away with the term
       | "employee".
       | 
       | Where people were just part of a team.
       | 
       | Where your boss didn't have to be concerned with which doctor you
       | went to.
       | 
       | Where you could work for $5 an hour for a cause you believed in,
       | and not have to worry about making ends meet.
       | 
       | Some day we need to #RefactorAmerica.
        
       | hising wrote:
       | Read about them earlier today, they are getting ready for IPO.
       | Can't help to think news like this has to do with building a
       | better offer. The market likes these kind of news.
        
         | petra wrote:
         | The future of grocery pickup delivery is clearly automated -
         | automated warehouse , and as we start seeing , automated
         | delivery robots.
         | 
         | What value does Instacart offer in the world ? Why would people
         | want to buy their stock ?
        
         | halfdan wrote:
         | Look, we're profitable after firing half our workforce!!!
        
         | dfxm12 wrote:
         | _The market likes these kind of news._
         | 
         | When someone points to a rising stock market as possible
         | evidence of a strong economy, just keep in mind that the market
         | likes it when a company fires a ton of employees.
        
           | vmception wrote:
           | Jobs for the sake of bragging about how many people are
           | employed is just as useless.
           | 
           | Do what helps you make revenue, don't do what doesn't.
           | 
           | I am a fan of one-off utility of people, I think of
           | everything like a commissioned trip to a new continent. Take
           | risk, get the gold, return, distribute payments, disband.
           | Reach out again if there is a similar project.
           | 
           | Keeping people around for no reason is folly and merely
           | trendy.
        
             | vkou wrote:
             | > Jobs for the sake of bragging about how many people are
             | employed is just as useless.
             | 
             | They aren't useless in a society where the only means of
             | survival is having a job.
             | 
             | In fact, in a society where the only means of survival is
             | having a job, part of the social contract is 'everyone
             | should be able to get a job'. Otherwise, you may get to
             | meet a lot of angry, desperate people, with nothing to
             | lose.
        
               | vmception wrote:
               | Yeah we should fix that and is a separate issue.
               | 
               | Vilifying a corporation that suddenly remembered they
               | have a lot of random people don't help generate revenue
               | is odd. Similarly, assuming distress of a corporation
               | when they remember to cut its workforce is just as odd.
               | Its probably an _accurate_ assumption, it just doesn 't
               | have to be and it would make more sense for corporations
               | to be more nimble.
        
               | kansface wrote:
               | Jobs aren't useless, but a job can produce net negative
               | value. Consider other politically mandated jobs like gas
               | station attendants in Oregon. These sorts of jobs (and
               | the government guaranteeing a job for everyone) are
               | downright dystopian - and further still, I can't imagine
               | the path to a healthy society.
        
               | vkou wrote:
               | A lot of jobs produce net negative value, but the guy who
               | pumps my gas, or the Wal-Mart greeter isn't at the front
               | of that list. The guy who cold-calls me with
               | telemarketing crap would be, though.
               | 
               | Everyone having an opportunity for employment is not
               | dystopia. A real dystopia is when you have no good social
               | safety net, but also have a large, unemployed underclass,
               | which has no ability to make a living for themselves.
        
             | triceratops wrote:
             | > I think of everything like a commissioned trip to a new
             | continent
             | 
             | It's a great model for the exploration business (or fields
             | similar to it, such as construction projects, entertainment
             | production and so on). It's not applicable to every single
             | industry though.
        
               | vmception wrote:
               | I think of all software projects like this.
               | 
               | I view the Instagram purchase as the most correct
               | example. 30 employees and bought out for 1 billion.
               | 
               | I know so many investors and founders that are shy of
               | certain dollar figures solely because there aren't like
               | 1000 people involved or some other arbitrary number of
               | employees or personnel. Compared to the most accurate
               | question "can I make a return on this amount of money,
               | and what are those probabilities".
               | 
               | Obviously there also are founders and investors that do
               | ask the most accurate question, and they grow in number.
               | 
               | It does aggravate me to see this other slower moving
               | culture with irrelevant perceptions of reality based on
               | how many employees a company has. It seems rooted in a
               | prosperity philosophy, where wealth accumulation is
               | granted by compliance with morality, and high employment
               | numbers satisfy that morality. And its like, wow how many
               | times does that have to be disproven to those people,
               | aren't they adults?
        
       | aklemm wrote:
       | While I like and use Instacart, the model is wrong. I am paying
       | too much for a slightly unreliable service and the employees
       | aren't getting paid enough. The stores should provide the
       | shoppers, delivery should be a separate service, and the cost
       | should be about a $15-30 premium for a large grocery order (15+
       | minutes of order picking + delivery similar to a cab ride). That
       | leaves the ordering platform, which might be a nice niche for
       | Instacart to provide across multiple stores.
       | 
       | Anyway, this has been a tough business all the way back to
       | Webvan!
        
         | ketamine__ wrote:
         | Wouldn't Kroger save money by doing direct delivery? Groceries
         | could be shipped direct from the distribution center.
        
         | mrlala wrote:
         | Having used instacart (through Costco) and walmart grocery
         | delivery almost exclusively for the past 10 months.. I'm more
         | amazed at how cheap it is, and I'm a bit worried that employees
         | are not getting paid enough.
         | 
         | Costco is probably the more 'reasonable' one. They mark up the
         | products probably 5-10%. So this one I feel that the delivery
         | people are probably being paid ok.. although my nearest costco
         | is 16 miles away (about 25min).. so it kind of feels like a
         | steal to be able to get delivery from them for what feels like
         | not a whole lot more.
         | 
         | Walmart is closer, but there are no markups.. and I pay
         | whatever $10/mo for free delivery from them. Order multiple
         | times a month.
         | 
         | I'm honestly not sure I'm going to go back to the stores as
         | often even when things are normal.
        
         | DGAP wrote:
         | This is how it works in Texas at HEB and Central Market. It's
         | about $10 to do curbside grocery pickup, more around $15-$30 I
         | believe for delivery, which is done through Favor, a delivery
         | subsidiary of HEB.
        
         | boringg wrote:
         | Agree with this. The premise is nice but the execution and
         | shadiness of raising prices so you don't really know how much
         | you are paying for the instacart premium feels bad.
         | 
         | You'd think this business would be going through the roof
         | during the pandemic. If it can't work now, how is it ever going
         | to work?
        
       | rtx wrote:
       | Imagine if these unions start a competitor, it would be glorious
       | and we can call it a co-operative.
        
         | heavyset_go wrote:
         | Good luck raising money to start a co-op.
        
         | tehjoker wrote:
         | The main barrier I imagine is access to capital.
        
           | pfooti wrote:
           | that, and the instacart business model is only feasible with
           | large VC infusions (so yeah access to capital) and via
           | externalizing other costs of doing business (living wage,
           | insurance, benefits) to the social safety net instead of
           | providing such services to their labor.
        
       | fermienrico wrote:
       | I always hear progressive views about unionization which I agree
       | with and they make sense. What are some of the disadvantages of
       | unions?
       | 
       | Edit: Before you hit that downvote button, can we not have a
       | balanced discussion about pros and cons of Unionization? I am a
       | progressive and a Democrat but I want to know both sides of the
       | coin. For people saying this question is of bad faith, I am not
       | really asking "What are the advantages of murder?" here,
       | Unionization is a complex topic and it would be interesting to
       | understand that it's not just companies exploiting employees, but
       | there is a lot more to it than that.
        
         | eeZah7Ux wrote:
         | A lot of the answers describe problems that can exist in any
         | human organization rather than being specific to unions. For
         | example:
         | 
         | - Prioritizing the organization survival or growth over the
         | needs of those who should benefit from it. Ironically, this is
         | the default of for-profit companies.
         | 
         | - People at the top being corrupted, prioritizing personal gain
         | over moral values
         | 
         | - Becoming slow and bureaucratic after becoming big and/or old
        
         | jawns wrote:
         | Unions can be tremendously helpful when there is a wide
         | disparity in bargaining power between employer and employee. In
         | the late 19th and early 20th century, labor unions made
         | tremendous strides in improving worker conditions and
         | pay/benefits.
         | 
         | Among the criticisms I've heard ...
         | 
         | Sometimes market forces can get you adequate conditions and
         | pay/benefits without the need for collective bargaining. For
         | instance, software engineers tend to be well paid even without
         | needing to unionize. So if you don't feel that you need a
         | union, but you're forced to be in a union (and pay dues)
         | against your will -- as happens in many industries -- you may
         | feel those dues are taking money out of your pocket
         | unnecessarily. In fact, the union leadership might actually be
         | making decisions that benefit them or the members collectively
         | but that don't benefit you individually.
        
           | bombcar wrote:
           | The union workers I know generally are annoyed to hate the
           | union, both for the dues unceremoniously ripped and for
           | "protecting lazy co-workers". It's usually held to grumbling
           | but they always have an eye out to grab a higher-paying non-
           | union job if one shows up.
        
             | itsoktocry wrote:
             | > _both for the dues unceremoniously ripped_
             | 
             | I mean, yeah, you owe dues. How else should it work? When I
             | was part of a union it amounted to 2 hours of wages per
             | month, not exactly onerous.
        
               | ars wrote:
               | > I mean, yeah, you owe dues. How else should it work?
               | 
               | It's a bigger problem in non Right to Work states, where
               | you can be forced to join the union (and have dues taken
               | from you).
               | 
               | In places where joining the union for their benefits is
               | voluntary I don't see the problem.
               | 
               | There are also places where you don't have to join the
               | union, but they still take some of the wages (at a lower
               | rate than full members) for nebulous "benefits" the union
               | offers. Those are especially contentious because not all
               | the employee believe they get any benefits at all.
               | 
               | The US should shift to the European model where multiple
               | unions are available at each employer, and they compete
               | with each other for membership. I believe joining a union
               | is required there, they don't have any non-union jobs,
               | but a European union is not the same as a US one.
        
               | elefanten wrote:
               | Counterexample: the nascent Google employees union is
               | taking 1% of total comp.
               | 
               | That's pretty ambitious when the employees are Googlers.
        
               | sib wrote:
               | >> itsoktocry 2 hours ago [-]
               | 
               | >> When I was part of a union it amounted to 2 hours of
               | wages per month, not exactly onerous. reply
               | 
               | >> elefanten 2 hours ago [-]
               | 
               | >> Counterexample: the nascent Google employees union is
               | taking 1% of total comp.
               | 
               | Not sure it's really a counterexample as there are - in
               | theory - about 200 work hours per month, so 1% of comp is
               | pretty much equivalent to 2 hours of wages per month.
        
               | legerdemain wrote:
               | Could unions be ad-supported? Maybe you put a TV monitor
               | playing a continuous stream of ads in the employee break
               | room. It's win-win.
        
             | moate wrote:
             | The union workers I know generally are pleased by their
             | union, especially if they worked in their location prior to
             | organization. They are able to remember and appreciate the
             | difference between how management treated them before and
             | after. Even my friends who worked as management in union-
             | shops appreciated what the org was able to do for the
             | people they supervised (even if it was frustrating during
             | 2018 strikes to have to manage entire hotel restaurants
             | short staffed).
             | 
             | Out of curiosity, what field are your union friends in, and
             | do you happen to know what union represents them?
        
             | heavyset_go wrote:
             | Statistically, white collar union workers have higher
             | compensation[1], better benefits and more time off. They
             | also report higher rates of life satisfaction[2].
             | 
             | [1] https://www.bls.gov/opub/mlr/2013/04/art2full.pdf
             | 
             | [2]
             | https://journals.sagepub.com/doi/10.1177/0160449X16643321
        
             | whydoibother wrote:
             | The lazy worker argument applies to any job. I work in a
             | F500 and have 'lazy' coworkers. I can't just go to my
             | manager and get them fired.
        
           | heavyset_go wrote:
           | > _For instance, software engineers tend to be well paid even
           | without needing to unionize._
           | 
           | Compensation for the majority of software engineers has not
           | kept up with cost of living increases, inflation nor the
           | amount of revenue they generate for their employers.
           | 
           | Adobe, Apple, Google, Intel, Intuit, Pixar, Lucasfilm and
           | eBay all colluded with one another[1] to keep tech worker
           | compensation below their market rates.
           | 
           | > _So if you don 't feel that you need a union, but you're
           | forced to be in a union (and pay dues) against your will --
           | as happens in many industries_
           | 
           | No one is forced to work a union job. If your employer makes
           | a decision that you don't like, you aren't forced to work for
           | them, either. If a union makes a decision you don't like, you
           | aren't forced to work for it.
           | 
           | [1] https://en.wikipedia.org/wiki/High-
           | Tech_Employee_Antitrust_L...
        
             | jkingsbery wrote:
             | > No one is forced to work a union job.
             | 
             | This is technically true, but this is also an argument
             | against unions. It's true that if you don't like that your
             | company is unionized you can go work for a company that's
             | not unionized, but it's also true that if you don't like
             | that your company is not unionized you can go work for a
             | company that is.
        
         | ink_13 wrote:
         | You are probably being downvoted because this is not really an
         | appropriate venue for such a discussion. If you are genuinely
         | curious, surely you have access to a search engine where you
         | will get much more thorough discussion of both sides.
        
           | bhupy wrote:
           | Why isn't this an appropriate venue?
        
         | [deleted]
        
         | TedDoesntTalk wrote:
         | > What are some of the disadvantages of unions?
         | 
         | Corruption. Over and over again, decade after decade.
        
           | whydoibother wrote:
           | So... the same as most corps?
        
         | [deleted]
        
         | itsoktocry wrote:
         | > _What are some of the disadvantages of unions?_
         | 
         | As someone who spent a lot of time as a member of a once
         | powerful Canadian Union, the downside is that you get what you
         | get, losing individual bargaining ability. You have a vote, but
         | majority rules, and overnight you could be working under terms
         | and conditions you don't necessarily agree with. Promotions and
         | internal transfers are handled by seniority. The collective
         | trumps the individual. Nothing inherently wrong with that, but
         | you can't please everyone.
        
         | fat_pikachu wrote:
         | It isn't uncommon to find yourself on the losing end of the
         | union contract negotiation with little you can do about it. You
         | give up your agency. The only things that matter are the
         | interests of the existing majority which will often be
         | prioritized at the expense of the minority (e.g. LIFO layoff
         | practices).
         | 
         | I made one tenth the salary as professor while teaching as an
         | adjunct in grad school despite having a similar course load. My
         | uncle's union negotiated lay-offs of his division over another
         | one. A lot of us have stories like this that left a bad taste
         | in our mouths about unionization. Corporations can also be
         | guilty of favoritism but they aren't supposed to be on your
         | side of the negotiating table.
        
           | rahimnathwani wrote:
           | FIFO or LIFO?
        
             | fat_pikachu wrote:
             | LIFO. Thanks, corrected it.
        
         | AnimalMuppet wrote:
         | Somebody's law (don't remember whose): Organizations tend to
         | preserve the existence of the problem to which they are the
         | solution. That is, unions often try to protect the _union 's_
         | interest, not the _members_ interest.
        
         | whalesalad wrote:
         | Living in Detroit and knowing a lot of people who work in the
         | auto industry I can tell you that for every ounce of goodness
         | that comes from a union there is an equal and opposite ounce of
         | badness. The shit that I hear people get away with is
         | remarkable. And yet they continue to come to work day after day
         | with seeming impunity, continuing to assemble vehicles, etc...
         | 
         | I am personally anti-union because inevitably they become so
         | large that they succumb to their own internal forces and become
         | beurocratic and misguided.
        
           | sojsurf wrote:
           | Also from Detroit metro, and was coming here to say the same
           | thing. I moved here from out of state and the more I talk to
           | folks who work in the auto industry, the more I'm convinced
           | that unions are a large obstacle to the revitalization of
           | Detroit's auto industry.
           | 
           | While they bring stability and job security to workers who
           | are invested in excellence and quality, they also bring
           | stability and job security to workers who have no desire to
           | be productive. This is demotivational for anyone who needs to
           | work with these employees and has an outsized effect on the
           | organization. To quote a friend, "I love my work, but I can't
           | get anything real done because I need sign-off from X, but he
           | sits around all day, doesn't really work, and no one can fire
           | him."
        
             | whalesalad wrote:
             | The whole "he just sits around - no one can fire him" is
             | painfully true.
        
         | tharne wrote:
         | Unions tend to incentivize low performers and prevent companies
         | from adapting to changing conditions.
         | 
         | Since it's next to impossible to get fired from a union shop,
         | lower performers and less ambitious tend to stick around
         | because it's easy work and they can't really get fired. And
         | because pay in union shops is often tied more to tenure than
         | performance, your higher-performing workers tend to get
         | resentful and leave, as they are not rewarded for their
         | contributions.
         | 
         | In terms of inflexibility, markets and conditions can change
         | very quickly, which means people's roles and responsibilities
         | need to change.
         | 
         | Unions tend to (but as a rule to "have to") push back against
         | this, even when the employer is offering re-training programs.
         | Typically unions define what a "job" is and then fight to keep
         | said jobs, which can prevent companies from making the changes
         | they need to. Ironically, this often leads to more, not fewer
         | job losses, since the company can't adapt. This is why many
         | cities in the Northeast still have "typists" officially on
         | their payroll. The union will fight to keep a person's job, _as
         | it was defined the day they were hired_. You can get away with
         | this sort of thing in government, up to a point. In the private
         | sector it can gradually grind companies down, as it prevents
         | them from making the necessary transformations the need to in
         | order to succeed longer term.
        
           | Grazester wrote:
           | This is the idea of have of unions. NYC MTA is all union
           | workers and when I hear stories (from a relative that works)
           | of the kinds of things people get away with before being
           | fired along with their ridiculous compensation, I can't
           | easily shake my opinion of unions.
        
           | tick_tock_tick wrote:
           | This is a huge issue Volkswagen and other car companies are
           | having. As they shift to electric cars the Unions are pushing
           | back hard as it takes a fraction of the employees to
           | manufacture electric cars.
        
         | [deleted]
        
         | draw_down wrote:
         | Topic is Instacart layoffs not union debate
        
         | eldavido wrote:
         | Unions bring democracy to the workplace.
         | 
         | Democracy ensures some modicum of fairness, but is slow,
         | inefficient, and can lead to very bad outcomes when dealing
         | with highly technical questions. There's probably a place for
         | big, large-scale political questions (who should be president,
         | should we stay in the EU) to be decided by direct democracy,
         | but I wouldn't want that for trade or monetary policy.
         | 
         | The big problem I see with democracy, in general, is that it's
         | highly susceptible to special-interest takeover. When a small
         | group stands to gain disproportionately from a particular
         | outcome, they will lobbby--HARD--to get that outcome. Even when
         | doing so might be so harmful to the overall system, that it
         | collapses, even if they get what they want.
         | 
         | The US analog is the SEIU/AFSCME organizing so hard that the
         | entire government of a state, like Illinois, becomes beholden
         | to what they want.
         | 
         | How did AB5, the TNC bill, pass, when it was overwhelmingly not
         | supported by drivers and the electorate didn't want it, either?
         | Teamsters pushed their agenda. Hard.
         | 
         | Unions will make no bones about running an employer,
         | government, or other organization absolutely into the ground in
         | the name of advocating for their members' interests. They do
         | not care about taxpayers, customers, or any other constituency
         | other than themselves and their members. And when it all falls
         | apart, they'll just go to the next state/company/etc. and run
         | the same playbook, over and over. It's very harmful. Some
         | things need to be outside the reach of democracy/the masses.
        
           | whydoibother wrote:
           | Everything you said negative about them applies to
           | corporations as well. Not sure why you single unions out on
           | this.
        
             | eldavido wrote:
             | Because the thread was about unions. Though you're right.
             | 
             | I think people who are really big "repeal citizens united"
             | types need to realize that it cuts both ways.
        
       | darkwizard42 wrote:
       | It seems pretty clear the motivation here is that Instacart
       | doesn't need/can't afford the workforce and is instead probably
       | finding that store employees are able to fill the orders via some
       | partnership with the big chains for a cut that is more margin
       | efficient than hiring their own "shoppers" to do so.
       | 
       | Also just generally this makes sense... a Safeway/Shoprite/Whole
       | Foods employee can probably navigate and fill a cart faster than
       | a random shopper who might not be as familiar with every store's
       | layout. For Instacart this is a huge win, faster fulfillment and
       | probably even higher accuracy of fulfilled orders. For chains
       | this is also a great win since they can utilize their employees
       | more, make a little extra off Instacart, and potentially even
       | optimize their store layouts better to cater to this new style of
       | shopping.
       | 
       | Also the headline is quite misleading given that there are only
       | TEN union workers... so "all of its union roles" is
       | misrepresenting the whole thing a bit.
        
       | jiofih wrote:
       | [paywall]
        
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