Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Didi Considered Safest Ride-Hailing Platform Despite Murders, Survey Shows
Velodyne Lidar Cuts Direct Sales Team in China
Xiaomi Budget Brand Redmi Releases Cheaper Than Expected 5G Smartphone
LATEST
Chinese Genome Sequencing Firm to Supply Tech to Abu Dhabi Personalized Health Care Project
Apple Swerves $150 Levy on iPhones As U.S. and China Strike Trade Deal
China Merchants Bank Executive Arrested in Connection to P2P Business
Hillhouse-Backed Genor Plans $200 Million Hong Kong IPO
GitHub Looks to Open Subsidiary in China
5G Handsets Grow As Proportion Of China’s Sluggish Smartphone Market
China Executes Man Who Killed 3 Fearing Wife’s Forced Sterilization Under One-Child Policy
Agriculture Insurance Companies Take A Hit From African Swine Fever
Tencent-Backed News App Denies Explosive Fraud Allegations From U.S. Due-Diligence Firm
Defying Sentiment, WeWork’s China Rival Files for New York IPO
Electric Car Maker Nio Cuts 141 Jobs at North American Headquarters
Huawei Wins Telefonica Deal to Help Build German 5G Network
China Unveils First 3D Images From Newest Earth Observation Satellite
Tesla to Raise Prices in China Again, Sources Say
Didi Considered Safest Ride-Hailing Platform Despite Murders, Survey Shows
Risks and Benefits of China’s Private Sector Bailout
Xiaomi Budget Brand Redmi Releases Cheaper Than Expected 5G Smartphone
Major Chinese Freight Line Sees Shipments Fall 8% Amid Slumping Coal Demand
Sales of Chinese-Made Excavators Slow Amid Cooling Infrastructure Investment
BAIC Slump Persists With Bleak November NEV Figures
JD.com Confirms Trials to Eliminate Delivery Drivers’ Base Pay

By Tang Ziyi / Apr 08, 2019 06:28 PM / Business & Tech

Photo: VCG

Photo: VCG

E-commerce giant JD.com has eliminated the base salaries of an unknown number of delivery drivers in its latest attempt to cut costs, leaving them relying on performance-based pay.

JD Logistics, a decade-old unit of JD.com, has trialed cutting the base pay of delivery workers in some regions, the company said in a statement on Sunday. It did not say which regions.

Rumors of such cuts surfaced earlier this month on the job-focused social media platform Maimai, where a user claiming to be a JD employee said the company had eliminated their base salary — the regular monthly wage a worker can depend on making before commissions.

JD Logistics confirmed the chatter in a Sunday statement which said the decision was intended to drive better employee performance. This was because since the company had opened up its network to deliveries from individuals and other businesses, the incentives driving employee performance had become insufficient, the statement said.

In the cities where base pay has been eliminated, many delivery workers had been making an average of 8,000 yuan ($1,190) per month, the company said. Local news site Sanyan Caijing estimated this would amount to a pay cut of some 15-20%.

The company also confirmed it had made some “adjustments” to funding dedicated to housing for delivery workers. In China it is compulsory for employers and employees to pay into company housing funds that employees can later withdraw from to spend on housing. Some Maimai users said the company was now paying only 7% of wages into the fund, down from the previous 12%, though the company’s statement did not say so.

JD.com spun off its logistics unit in April 2017. It can deliver 90% of orders within one day, and covers 99% of China’s population, the company claims.

In February, JD.com laid off one-in-ten senior executives to reduce costs. The leading e-commerce platform is just one of many technology companies that reduced employee numbers from last year, as dwindling capital, volatile markets and tightening regulations have lashed the sector. 

Related: A Winter Storm Looms for China’s Tech Sector

Share this article
Open WeChat and scan the QR code