Amazon Employees In Germany Go On Strike, Demand Higher Pay
Zacks Investment Research | Apr 15, 2019 10:17PM ET
Amazon.com Inc. (NASDAQ:AMZN) is again facing a strike called by its German employees in four of its warehouses. The workers alleged that poor pay and unfair working conditions in the company is the primary reason behind the strike.
Per reports, German labor union — Verdi — went on a strike at the company’s distribution warehouses located in Rheinberg, Werne, Bad Hersfeld and Koblenz.
Reportedly, the workers would continue the strike till Thursday if their demands are not met.
Regular Strikes in Germany
Workers at Amazon’s distribution centers in Germany have been calling such strikes since May 2013, demanding the right for collective bargaining, proper working conditions and regard for their efforts.
To cater to the increasing demand in Europe, several fulfillment centers have been opened to ensure smooth delivery despite persistent problems. The retailer has 12 fulfillment centers in Germany.
Fulfillment centers are giant warehouses that aid the company in storing and shipping products, and handling returns quickly. These are crucial for the company as they help in providing better shopping experience to customers.
Notably, Germany remains one of Amazon’s largest European markets. It is the company’s second-biggest market after the United States. Thus, the latest move of the German workers disrupt the company’s capacity to some extent, in turn impacting sales.
Amazon’s Response
The company reportedly dismissed the accusations, claiming that the workers are availing work conditions that are better that the industry. Further, it declared that their wages are at the higher end of what is paid in similar jobs in the industry.
Notably, the stock has gained 28% in the past year compared with its industry ’s growth of 6%.
Amazon’s strengthening initiatives are focused on providing an enhanced shopping experience with the help of robust product offerings, deep discounts on various items, Prime program, and expanding freight and delivery services.
These endeavors of the company are likely to drive sales further in many countries and aid it in winning the confidence of customers.
Despite severe workers’ strikes in the European region during the recent holiday season, Amazon reported a record-breaking holiday sales that indicate its reliability.
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