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Some Shipt workers plan to walk out because of changed payment model

Nicole Norfleet, Star Tribune (Minneapolis) on

Published in Business News

Shipt workers in metro areas across the country plan to "walk off" their grocery delivery jobs on Wednesday after the company announced pay structure changes that some say could dramatically reduce how much money they earn.

Shipt -- which is owned by Minneapolis-based Target and handles its deliveries -- said Monday that it e-mailed workers in about a dozen metro areas late last week to inform them of the new pay structure set to take effect Wednesday in cities including Denver, Chicago, Tampa and Portland.

Shipt has said it plans to eventually adopt the model in all of its markets in the coming months after it initially began testing the new structure in a handful of areas in January.

Shipt, like other delivery services such as Instacart and Amazon Prime, has seen a surge in business since the outbreak of the coronavirus in the U.S. as more customers opt out of in-store shopping.

In early spring, Shipt added 70,000 new workers to keep up with demand at Target and the other stores for which it delivers. Workers are independent contractors like Uber or Lyft drivers.

For the first quarter of this year, Target sales fulfilled by Shipt were up more than 300%.

 

The new payment model is supposed to "better account for the actual effort it takes to complete and deliver orders," Shipt said, on a website post.

"Our shoppers should be paid based on the effort that they are putting in," said Shipt spokeswoman Molly Snyder, in an interview.

Customers aren't going to see a change in delivery costs, Snyder said.

But Willy Solis, a Shipt worker from the Dallas, Texas, area, said he reached out to hundreds of other Shipt workers across the country who were working in initial test markets and were paid significantly less under the new system.

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