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Yes, intensively competitive companies like Amazon sometimes press workers hard. Without endorsing nor assigning blame to the company (which faces pressures fro
by dj-wonk 9y ago
Yes, intensively competitive companies like Amazon sometimes press workers hard. Without endorsing nor assigning blame to the company (which faces pressures from globalization and shareholders), there are many potential approaches to the problems:
1. Amazon could build a brand around treating workers better (UPS has at times had this reputation) and thus differentiate themselves and justify the cost of better pay and benefits.
2. Government regulations could require a certain standard of job creation or insurance coverage. These could be coupled with incentive programs.
3. Workers can organize. (i.e. into unions)
4. Consumers can vote with their dollars.
5. Investors can vote with their dollars.
There are many more variations on these themes.
If these kinds of solutions don't work, workers tend to get squeezed. Due to the complexities of our economic and political systems, in practice, certain companies end up treating human resources (people) as expendable assets to exploit. Sometimes they do so for a long time. That is why other power centers (government, labor organization, consumer activism, investor activism) are necessary to achieve broader goals.
- gbacon 9y agoConsumers’ votes with our dollars is what drives it all and certainly what attracts (5). Consider the effect of (2), (3), and (4) upon the worker at the margin: they will all constrict the number of jobs relative to what it is today. Great for the lucky fewer who get in, but the economist must consider both the seen (higher wages for some) and the unseen (unemployment for others). As to (1), Amazon is at the Walmart end of the market and are driving up affordability; the two go hand-in-hand. Does sufficient demand for a Target or Costco exist? An anecdote, for what it’s worth: the people I knew who drove their trucks several years ago had the opposite view of how they were treated, particularly about being chronically shortchanged on retirement contributions, leave balances, and other accounting matters. Maybe things have changed since then.
- _rpd 9y agoAmazon is already working to fully automate these warehouses. Actions that increase the cost of labor will simply accelerate this process.
- crdoconnor 9y agoActions that increase the cost of labor will take big chunks out of their profit margins. Amazon will respond to this threat by telling agitated investors to calm down because they have a plan to automate every human out of existence by the year 2025. Unsophisticated investors are appeased by the tasty kool aid. Sometimes the general public will drink it too and react with downvotes thrown at the people hinting that the emperor might not be wearing any clothes.
- _rpd 9y agoAnyone betting against warehouse automation should review their investment strategy. The process is well underway.