Stock Ticker

  • Loading stock data...

Amazon.com, Inc. (NASDAQ:AMZN) Needs To Handle Labor Issues Amid Expansion Plans

Boston, MA 06/16/2014 (wallstreetpr) – As Amazon.com, Inc. (NASDAQ:AMZN) prepares to open a series of new distribution centers globally, the online retailer is increasingly facing challenges as to how it manages its labors across its fulfillment centers. During late last week, the U.S. Department of Labor announced its probe in relation to two deaths reported at the company’s warehouses. As per reports, one of the company’s temporary employee lost his life while sorting packages at its Avenel, New Jersey warehouse in December 2013, while the other death was reported on June 1 at the company’s Carlisle, Pennsylvania fulfillment center.

Criticized Earlier

The labor issues are not new to Amazon.com, Inc. (NASDAQ:AMZN), which has constantly been condemned for the way it manages its workforce. The company faced rejection earlier this year, when it decided to form a labor union at a Delaware center. During the previous year, the company had to battle against the strikes called by its warehouse workers in Germany against their demands to reach to a collective wage agreement and increment in minimum pay.

Amid Expansion Plans

The workforce management issues comes at a time when the Amazon.com, Inc. (NASDAQ:AMZN) is taking its plans forward to build more distribution centers in order to help speedy delivery of its products to the consumers. A report suggests that the company has spent as much as $13.9 billion till in between 2010 to mid of 2013, on fulfillment expenses, which includes 50 new facilities. As at the end of 2021, the company accounted for 89 warehouses that seesthe addition of five more in the U.S. last year. Apart from this, the expenses related to fulfillment centers totalled $2.3 billion, which is an increase of 29% during the first quarter.

In the meanwhile, the Amazon.com, Inc. (NASDAQ:AMZN)’s division, Occupational Safety and Health Administration (OSHA), which deals with the labor issues has held five companies responsible for the death of the contractor in December. Those included four staffing agencies that assigned the role to the temporary employees and the contractor responsible for the work.

Published by Pamela Garcia

Pamela Garcia is a keen follower of U.S. stock market

Recent Stories

SignUp Now For Our Featured Newsletter