3 ms·
Unionization is no threat to Amazon. Their margins and hence their shareholders maybe (briefly), but that's just fine and won't affect their ability to be succe
by arcticbull 5y ago
Unionization is no threat to Amazon. Their margins and hence their shareholders maybe (briefly), but that's just fine and won't affect their ability to be successful. It'll also push them towards further automation on the medium and long term time horizons.
That would in turn alleviate a lot of the governmental attacks and bad press. I can't think of anyone who hates Amazon the service - they hate Amazon the pee-bottle-broker and tornado-warning-ignorer.
As for other e-commerce sites, they'll probably just buy them, crush them, or if they can't do that - sell them logistics and infrastructure services.
[edit] Consider FedEx vs UPS. FedEx can't hire staffers right now, while UPS, unionized, saw basically zero attrition. FedEx is suffering right now. UPS, crushing it. [1]
The massive labor shortage that’s rocked the U.S. since the pandemic and disrupted long-established employment relationships hasn’t had much impact on UPS, which pays its unionized drivers the highest wages in the industry. That’s helped it maintain a stable workforce and rising profits throughout the current disruptions. Meanwhile, lower-paying, nonunionized FedEx racked up $450 million in extra costs because of labor shortages. And while UPS easily beat earnings expectations and predicted a rising profit margin in the U.S. for the fourth quarter, FedEx signaled that its profit margin will fall further.
[1] https://www.bloomberg.com/news/articles/2021-11-04/labor-shortage-ups-union-drivers-give-delivery-service-edge-over-fedex-fdx https://www.bloomberg.com/news/articles/2021-11-04/labor-sho...
- praptak 5y ago> I can't think of anyone who hates Amazon the service Wait, what? They do have a huge problem with counterfeit crap sold via bait-and-switch reviews. Edit: A related article https://arstechnica.com/tech-policy/2020/12/amazon-still-hasnt-fixed-its-problem-with-bait-and-switch-reviews/ https://arstechnica.com/tech-policy/2020/12/amazon-still-has...
- arcticbull 5y agoI'll never call them perfect, to be sure. They do have counterfeit issues and bait-and-switch reviews. However, I don't hate them for it, and I'm confident they're continuing to improve. JMHO. But a fair call-out nonetheless.
- _-david-_ 5y ago>I can't think of anyone who hates Amazon the service I don't like the destruction of smaller companies. Why go with a smaller company who is going to charge more for the product, quite probably charge for shipping, all while taking longer with the shipping?