Amazon is now planning on making 200 workers lose their jobs as part of its largest-ever downsizing initiative. It’s not clear how many people will be impacted, but more than 1,500 roles currently exist across various departments and teams. As I wrote about earlier this week, it will take time before all these positions are eliminated or reassigned onto different shifts. The company claims that there’s been positive momentum since last year’s strike, which ended with no new hires, as well as increased safety measures, improved wages, and reduced overtime.
However, reports show that the pace has slowed down in recent months, with some managers saying that they aren’t seeing benefits increase as quickly as they once did. Workers say they don’t get paid enough, with one even claiming his family “isn’t getting anything close to what he makes [at work].” Another worker claims he was fired for taking leave he didn’t need while caring for an infant. Workers are also worried about further layoffs, and Amazon executives themselves have admitted that the company isn’t making progress towards addressing issues that had previously led to concerns. This isn’t the first time we’ve seen large companies try to reduce their workforce in order to cut costs.
A similar effort occurred during the early 2000s when GE cut 500,000 jobs as it shifted focus away from energy and toward manufacturing. But despite the challenges presented by COVID-19, the move back then wasn’t seen as particularly damaging. That same model could be used again to save jobs. If Amazon can use that success to do so, they should consider it. Let’s discuss how unions like ours are already helping Amazon meet workers’ needs in a challenging economic environment.
Amazon Has Failed To Create Jobs In Its Workplace
Amazon doesn’t just make money. We’re living in an era where technology has made our lives easier and safer, and we increasingly find ourselves relying on computers to perform everyday tasks. We’re spending more and more of our day online. So far, that means more and more of us have begun relying on technology while shopping. And yet most of us still rely on retail workers in brick-and-mortar stores for their labor. With tech becoming cheaper, larger, and more accessible, it’s likely many of those workers could soon be replaced by robots.
And if company is serious about being good corporate citizens, it’ll need to create jobs in other parts of the business besides warehousing, such as customer service and delivery.
Company can Use Employee Strikes To Improve Working Conditions
Unionization can help address long-standing issues in workplaces, including bad management practices, low wages, and poor workplace safety. Since 2015, Amazon has faced criticism for using contractors who were often undocumented immigrants and underpaying them — even though the company boasts itself as a place where workers can thrive and feel secure. Using strikes to improve working conditions creates more stable work environments, reducing fear in the workplace and empowering workers to speak up if they feel unsafe.
While company has announced plans to increase health care benefits, some unionized workers have complained that the company hasn’t done enough to protect their health care. Even with health care access being provided, the cost still leaves many families out of pocket for unexpected medical expenses during stressful times.
Employers can’t afford to be careless, especially when workers’ lives depend on their work. Therefore, boycotts of Amazon warehouses in response to contract violations are important in creating healthy working environments, rather than contributing to turnover.
They can also help Amazon create better job opportunities for less qualified candidates, which would ultimately lead to fewer losses. When Amazon starts utilizing employee strikes to improve working conditions, it shows that it cares about its staff and wants to prioritize its customers — but they also mean good things for them and their families.
Amazon Doesn’t Treat Remote Employees Well
We don’t know for certain what caused Amazon’s mass layoff, but they probably made a few mistakes that contributed to the decision. For example, Amazon recently closed two fulfillment centers in Wisconsin, citing the ongoing pandemic and high demand. Yet according to CNBC, “While the closures are unusual, the company says the closures are necessary due mainly to lack of capacity, primarily because only 2,000 trucks from both locations will remain open.
One location had 13 pickers, eight drivers, 10 dock workers, and an inventory manager. Two fulfillment centers outside of Chicago, Illinois, weren’t affected. Neither is the organization currently experiencing any problems, Amazon spokesperson Jennifer Van Puyen said in April.
Amazon Is Trying To Be More Attractive Than Last Year’s Strike
Amazon is trying to appear cleaner and friendlier than last year’s strike despite having laid off thousands of employees in previous years. According to CNN, Amazon is “deliberately trying to portray itself differently compared to last year’s fight, calling for lower prices, faster deliveries, and free shipping on orders over $100 — all of which it is doing anyway, without delivering.
Those efforts come as Amazon reported earnings that beat analysts expectations and brought down shares of rival tech giant Apple by almost 6%. The stock jumped 5% in premarket trading Wednesday – well above the gain of 4.5% Wall Street expected to Twitter and Reddit users.
” Amazon CEO Brian Olsavsky told reporters this past Friday that labor shortages would impact Amazon’s future growth. He added that the number of vacancies in June was roughly double its January levels. These statements are difficult for employers to argue against, but it does seem the company is playing an image game, with the hope that the public will forget what happened. What kind of a message do you want to send to your employees?
Do you want to tell everyone that they’re valued and respected for their skills, abilities, and contributions, or do you want to play hard to please investors while leaving employees feeling like they can’t trust your judgment?
Don’t let anyone else decide how much you’re willing to sacrifice for your best interests. Not only was Amazon’s latest statement unproductive, but it might also serve as evidence that Amazon hasn’t lived up to its promises. This is one reason why organizing represents strong defense against exploitation of workers. You can’t just say “well, I want to pay my fair share!” or pretend like you’re going to solve this problem on your own without knowing how to organize in the workplace. Take part because everyone deserves to work at a company that treats its workers with dignity.
Amazon Needs Better Paying Practices
Amazon continues to face growing pressure over pay and minimum wage. By the end of May, approximately 800 Amazon managers and supervisors had joined ranks with Teamster members and the Labor Department on strike. All of these managers and supervisors are responsible for keeping current on compensation practices. Without proper wages, Amazon cannot ensure proper work conditions, as well as keep paying the appropriate amount of overtime when needed.
Union members have shown in multiple instances that they can put together a great deal of bargaining power within the industry, and they have been successful in many cases.
Unfortunately, too many businesses continue to give huge bonuses that fail to meet minimum standards. Meanwhile, Amazon gets criticized for providing very little wage support to its frontline workers, including hundreds of temporary workers who provide cleaning services. There are also cases where Amazon employees have called in sick and missed work — leading many others to claim they’re forced to choose between personal obligations and work.
Although Amazon claims it hasn’t hired enough top talent or kept up with changing demands, it’s likely that most hiring isn’t coming from the company. Instead, more people are jumping ship to places like Microsoft or Google, allowing Walmart, Target, Macy’s, Best Buy, REI, and Dollar General to fill in. It seems the tide is shifting with Amazon and its willingness to cut jobs with minimal consequences.
Amazon Should Focus On Creating Good Causes
Amazon could benefit from focusing on causes that contribute directly to workers’ livelihood. Because it relies heavily on its third party logistics providers, Amazon stands to profit more from rising fuel prices during peak hours than when supplies are abundant. Similarly, Amazon can increase revenue by continuing to offer discounts. Currently, Amazon offers discounts each month based on its sales to encourage shoppers to buy. Moreover, Amazon has started offering discounted items through the Prime membership program, suggesting that it will continue to reward loyal customers even as profits increase. Additionally, Amazon has taken steps to hire more women, starting with leadership.
Rather than simply implementing quotas, Amazon wants its leaders to become role models to younger workers looking to follow in their footsteps. An excellent way to demonstrate loyalty and commitment is to see someone in a position of authority take steps to avoid getting into trouble, so they earn positive feedback and endorsements.
Amazon Could Learn From Other Companies Like Starbucks
Starbucks has set goals to reach net zero emissions by 2025. Part of that goal involves replacing old gas appliances with electric appliances (specifically, the air conditioners) and investing more in renewable sources. Doing so, however, comes with additional financial burdens. Starbucks has been slammed heavily for failing to fulfill those obligations, and it hasn’t made any changes to its operations in decades. Many companies would like to operate in a greener manner, and Starbucks has a lot to learn from that approach. Despite its size, Starbucks is still able to run on a massive scale — which means there are plenty of ways in which competitors could adopt strategies similar to theirs.
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