Covid-19 has created strange bedfellows. Six months ago, a labor leader and an Amazon vice president would have been on opposite sides in discussing the future of work at Big Tech in general and Amazon in particular. Then on May 1, one of us, Tim, walked away from a senior role at Amazon Web Services, and potentially millions in compensation, in protest over the firing of workers who spoke out about conditions in the company’s warehouses.
During the pandemic, we’ve seen Big Tech share prices and revenue rocket, while some of Amazon’s warehouse workers say they fear coming to work and catching the coronavirus. The company’s decision to fire the activists who demanded safer jobs is unacceptable.
Both of us now agree: Amazon — and the rest of Big Tech — must change. And that includes allowing its workers to unionize.
We’re not alone in wanting accountability from these companies: Jeff Bezos and the heads of Facebook, Google and Apple will appear before the House judiciary’s antitrust subcommittee today.
The coronavirus has killed over half a million people worldwide and pushed global unemployment to rates not seen since the Great Depression. Shared sacrifice is called for, yet the burden has been far from even. Since mid-March, when quarantined shoppers turned to Amazon’s vast retail platform, its shareholder value increased by nearly $500 billion, to more than $1.4 trillion. Stock market shares are owned disproportionately by the richest people in society, and by Mr. Bezos in particular; his lead over the other richest people on earth has increased markedly.
This wealth is not shared with the workers who help create it. The temporary Covid-19-related hourly raise was rolled back in June, but the order flow remains high, making the already stressful work of those who sort, package and deliver Amazon goods even worse.
As this was unfolding, most of Big Tech, including Amazon, sent white-collar workers home to “flatten the curve” and fight the pandemic. Tim saw company leadership go to great lengths to make sure this new system was working and actively seek feedback from the remote workers. Christy heard from a warehouse employee who said productivity targets made it difficult for workers to take a break even for hand washing without a mark on their record. Pay for warehouse workers starts at $15 an hour with minimal access to time off; in May Amazon ended the unpaid leave policy that for a few weeks allowed them to stay home if they had Covid-19 symptoms. The contrast in the treatment of knowledge and warehouse workers couldn’t be starker. Equally clear is the cause: One group has power, the other doesn’t.
Amazon’s decision to fire the activists was easy to make in the United States, where Amazon workers have no union and are left to fend for themselves. With no right to paid sick leave or protection from unfair dismissal, American workers are among the most vulnerable in the world to pressure from any employer, not just Amazon.
Union-represented Amazon workers in Spain, Italy, France and Germany initially failed to resolve their concerns through negotiation, but with court action, regulatory intervention and strikes, they got their needs addressed.
Let’s look at France: Unions there brought a civil case arguing that Amazon had taken inadequate steps to protect workers from infection risk and that it had sidestepped the unions’ statutory role. The court ordered Amazon to limit its sales to only “essential” items, or face harsh penalties until it could reach a safety agreement with the unions. Rather than negotiate, Amazon closed its French operations and appealed. But the appellate court also sided with the workers, who ultimately negotiated a settlement including mandatory union consultation over safety measures, union hiring of external experts to assess the measures’ effectiveness and a continued increase in workers’ hourly pay. The news from Europe shows that Amazon can work with unions and get good results.
Both of us want Amazon to share the wealth with workers and stop putting the relentless pursuit of revenue growth ahead of all other concerns. One way or another, this requires putting more power in the hands of workers. Regulation and legislation are part of the solution. But there’s no need to wait; power can be taken, not just given. That’s what unions are for.
Amazon is a data-driven company. It should recognize the evidence showing that countries with more collective bargaining have a stronger social fabric and better growth, and are more able to weather economic ups and downs. Businesses with collective bargaining relationships, including Auchan Retail and Carrefour, navigated the Covid-19 crisis with less disruption to their businesses and emerged with their reputations intact and even enhanced.
For its own future and the future of the global economy, Amazon should become more responsive to the women and men who’ve enriched shareholders and be willing to recognize and bargain with their representatives. When it comes to the rights of its workers, it should be a leader, not a laggard.
It’s not just Amazon: The need for more unionization is urgent across Big Tech. Amazon stands out because it combines the extraordinary profit margins of these companies with employing hundreds of thousands of front-line workers. There are fewer of these workers at the other iconic tech companies, but nevertheless their employees also deserve a voice over the issues that matter to them.
The question for Mr. Bezos and the billionaires of the world is: Are they ready to rise to the occasion? Will Big Tech listen to and work with its employees to help the world overcome the worst economic and social crisis in recent history?
Tim Bray is a former vice president at Amazon. Christy Hoffman is the general secretary of UNI Global Union.
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July 29, 2020 at 04:00PM
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