As it turns out, it’s Amazon. Still. Only in Germany have workers stood up to them (mostly because the law is on their side, and political leaders back them — unlike here):
In the United States and the United Kingdom, the parties of the center Left, the Democrats and the Labour Party, have today lost this focus, and the labor movements in both countries are in long-term decline. But in Germany the labor movement remains strong, and on workplace issues the mainstream political parties, the Christian Democrats as well as the Social Democrats, are well to the left of their American and British counterparts. This became apparent following the scandal at Amazon’s Bad Hersfeld depot in 2012, when security guards allegedly forced their way into dormitories housing temporary Amazon employees and intimidated them. Amazon faced what Der Spiegel called a Shitstorm and was strongly criticized by the federal minister of labor, the prime minister of the state government of Hesse, the head of the Labor Office in Hesse, as well as the Social Democratic Party opposition in the federal and state parliaments.
Amazon was on the defensive, and in an interview with Spiegel Online that followed the scandal, Amazon’s local CEO, Ralf Kleber, distanced himself from the managerial absolutism of Bezos and Onetto in saying that he would welcome the setting up of more work councils (Betriebsrat) at Amazon depots. The services union, Ver.Di, was also a beneficiary of the Amazon Shitstorm. The union’s goal is to organize the whole Amazon workforce in Germany, negotiate wage increases with Amazon management, improve the working conditions of temporary employees, and blunt Amazon’s more oppressive workplace practices. In a German political and social context, it has a good chance of succeeding. Such success would, however, raise issues of ethics and economics that apply equally in a US and UK setting.
Union success would unquestionably raise Amazon’s costs and slow the growth of employee productivity. Wages would begin increasing in line with employee productivity, and productivity growth itself would slow as the union and the Betriebsrat together blunted Amazon’s practice of pushing employees to the limit and beyond. We can be sure that at this point, Amazon would play the “cult of the customer” for all its worth and would do the same in an American setting if faced with the same challenge. So customers would have to start paying more for their packages and could no longer be absolutely certain of receiving delivery of them the very next day.
But should these marginal benefits to customers really be purchased at the price of a system that treats employees as untrustworthy human robots and relies on intimidation to push them to the limit, while denying them the rewards of their own increased efficiency? This is not a choice to be made solely with the economist’s narrow calculations of monetary costs and benefits. In quantitative, monetary terms, the cost to Amazon customers of a benign reengineering of the company would far outweigh the monetary benefits to employees. But what is the real value of such customer inconvenience when set alongside the value lost with the millions of lives damaged by Walmart, Amazon, and their ilk?
