Peloton Faces Criticism: Black Employees Report Unfair Pay

According to a new report from Business Insider , Peloton’s Black employees are asking questions about unfair pay disparities. Black employees have been openly discussing their salaries after years of secrecy.

Peloton claims that it doesn’t pay less than the market rate, but that compensation is based upon different “levels”, such as experience and geography. According to the report, Michael Gettlin (one of the company’s vice-presidents responsible for salaries) jumped on a Zoom meeting to discuss the matter with 200 members of “Black@Peloton”. He said that it was possible for two team members to be at the same level, but that they could be paid substantially differently.

Business Insider stated that Gettlin did say that two employees performing essentially the same work should be paid the same pay. Peloton hired an outside consultant to investigate the issues of pay-equity. The article states that the “gulf” between hourly workers at Peloton, many of them people of color and the rest of Peloton’s workforce is reflected by the 317-to-1 ratio between [CEO John] Foley, and the median Peloton employee." A Slack discussion channel also revealed that Black IT professionals with years of experience were receiving thousands of dollars less than those with comparable experience.

Peloton has been vocal in its anti-racist stance, with its $100million pledgelastyear to combat systemic racism in the wake of Black Lives Matter. Peloton embraces diversity through its internal programming and special apparel series that honor Black History Month and Hispanic Heritage Month. Many employees wonder if this is enough.

According to Business Insider

Insider spoke with some people who felt the episode highlighted a problem at Peloton. While the company claims to be fighting systemic racism, it is too reactive and reacts to crises, rather than showing genuine interest in creating a fair workplace. Four former and current Black employees shared their personal experiences with Peloton, which they claimed showed a pattern in underpaying certain workers.

One former employee stated that he had just a “hunch” about the matter. The employee surveyed other employees about pay and found that “the three Caucasian people all got paid more than what my starting salary was.” He also noted that one of the people he questioned had started six to eighteen months before him, while the two others started several months later.

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One Black employee said that none of the information was genuine during a conversation via a messaging app. Peloton recognizes the power of the Black dollar, and while they see the benefits in aligning themselves to the BLM/Anti Asian Hate position, it does little internally to address inequity or diversity concerns.

The full article is well worth reading, and we’ll keep you updated as the story develops.