Senate probe, strike threat return Amazon’s workplace conditions to the spotlight

The situation: Amazon’s working conditions are under fire.

• The Senate Committee on Health, Education, Labor, and Pensions (HELP) released a damning report that found Amazon warehouses recorded 30% more injuries in 2023 than the industry average.
• Over the past seven years, Amazon warehouse workers were nearly twice as likely to be injured as those in other warehouses. More than two-thirds of Amazon’s facilities exceeded industry injury rate averages.

The report coincided with workers at two New York warehouses voting to authorize a strike after Amazon refused to recognize their union or negotiate over unsafe working conditions and low wages.

Zooming in: The HELP report, based on an investigation launched in June 2023, claims Amazon’s "obsession with speed" creates a hazardous workplace culture.

It alleges the company manipulates injury data, discourages workers from seeking external medical care, and ignores internal safety recommendations.

Zooming out: This is far from the first time Amazon has faced scrutiny over its working conditions.

• The Morning Call in 2011 reported on warehouse employees in Pennsylvania working in 114-degree heat while paramedics waited in the parking lot to treat fainting and dehydrated employees.
• In 2015, The New York Times described a challenging corporate culture where Amazon pushed white-collar workers to their limits.
• In 2021, the Times reported Amazon’s strict monitoring of warehouse employees created a culture of fear and high worker turnover during the pandemic.

Beyond the HELP report, the Southern District of New York is investigating Amazon for underreporting injuries, and California recently fined the company $5.9 million for violating worker protection laws tied to productivity quotas.

Amazon’s response: Amazon called the HELP report “wrong on the facts” and claimed it relied on selective, outdated information.

The company highlighted a recent Washington state ruling that rejected allegations about unsafe work speeds and noted recent improvements in its injury rates.

Our take: If past is prologue, then the spotlight on Amazon’s working conditions may harm its public image but is unlikely to dent retail sales. For instance, the 2015 Times exposé had little impact—Amazon’s North American sales surged 24% YoY, and Prime membership grew 51% YoY.

Consumers vote with their wallets, and more often than not, they prioritize delivery speed and selection over the working conditions of those who picked, packed, and delivered their orders.

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