Criticism Over JD.Com's Staff Overhaul Is One Sided, Retail Titan Says
Liao Shumin | Chen Juan
DATE:  Apr 09 2019
/ SOURCE:  yicai
Criticism Over JD.Com's Staff Overhaul Is One Sided, Retail Titan Says Criticism Over JD.Com's Staff Overhaul Is One Sided, Retail Titan Says

(Yicai Global) April 8 -- Netizens' responses to an internal letter that JD.Com sent to staff are one sided, the Chinese e-commerce giant said today after an email that said the firm would get rid of workers who were unable to struggle hard was leaked online.

The Beijing-based firm plans to axe performers who bring less bang for their buck and those unable to toil -- regardless of health or family issues, according to a screenshot of the email that went viral on Maimai, a Chinese networking site similar to LinkedIn.

But JD.Com said in its statement that without context, interpretations of the letter are "one sided." It has not denied the content of the letter.

"JD advocates the spirit of entrepreneurship and hard work, and wishes to create an environment where diligence and hard work pay off, rather than one where dawdling is frequently seen," it said.

Double Trouble

The debacle coincides with the company's distribution arm JD Logistics denying rumored layoffs in a statement on Weibo last night, but admitting that it would restructure courier salaries by removing their base pay. That leaves the deliverymen and women without a guaranteed income -- a move the unit justified by saying its existing pay structure did not fit its business model.

JD is able to offer superior delivery services compared with its domestic e-commerce peers thanks to the logistics unit, which it spun off in April 2017. By operating the subsidiary independently, the logistics division can earn an income not only from its work with JD, but for other corporate clients and by offering parcel collection services for personal deliveries.

Before the change, delivery workers earn a basic salary plus commission for deliveries, but this is not a great enough incentive for top performers, the logistics arm said, adding that it was piloting a commission-only system that offered additional incentives in some regions.

The average monthly salary of many of its couriers has surpassed CNY8,000 (USD1,190) in some southern second- and third-tier cities that are trialing the new mechanism, it added. China's average salary in 2015 was a little over CNY5,000 a month nationwide, according to official data.

JD Logistics plans to add another 10,000 jobs as it looks to serve clients from a larger range of sectors this year, it added, denying speculation that it would lay off staff. The firm receives a large number of applications from people hoping to work for the company every year, it said.

Editor: James Boynton

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Keywords:   JD.Com,JD Logistics,Labor