Amazon most scrutinised tech-enabled company amid pandemic
As Amazon becomes an extremely important lifeline in the pandemic crisis, it really is being hit with a wave of criticism from activists, politicians and other people who question the tech giant’s growing influence.
Amazon is just about the most scrutinized company through the health emergency.
It has boosted its global workforce to practically one million and handled protests over warehouse safety and reported deaths of several employees.
But Amazon has also pledged to spend at least $4 billion in the current quarter-its entire expected operating profit-on coronavirus mitigation efforts, including relief contributions and funding research.
Amazon’s AWS cloud computing unit, which powers big portions of the web, is also an integral element through the crisis with more people and companies working online.
Amazon’s market value has hovered near record levels around $1.2 trillion dollars since it reported rising revenues and lower profits in the past quarter.
“Its sheer size justifies the scrutiny,” said Dania Rajendra of the activist group Athena, a coalition which is focused especially on Amazon’s corporate activity and treatment of workers.
Athena activists fret that Amazon, which also controls among the major streaming television services, infiltrates so many aspects of people’s lives.
Rankling many activists, the rise in Amazon’s shares has boosted the wealth of founder and leader Jeff Bezos to over $140 billion even while the global economy has been battered by the virus outbreak.
Amazon has faced employee walkouts at several facilities over safety and hazard pay and has been accused of firing people for speaking out against the business.
“It’s a minority going on strike however the sentiment represents thousand if not hundreds of thousands,” said Steve Smith of the California Labor Federation.
While Amazon has boosted base pay to $15 an hour, above the minimum wage required, and added bonuses during the pandemic, activists say it’s insufficient, especially in high-cost states like California.
“This company are able to make these jobs middle income jobs, good jobs,” Smith said.
Tensions in Washington
The tensions have spilled over in to the US capital Washington and elsewhere. US lawmakers leading antitrust investigations asked Bezos to react to reports that the business improperly used data from third-party sellers to launch its products, which the company has denied.
NY state Attorney General Letitia James called Amazon “disgraceful” for firing a warehouse employee who led an employee protest over safety. Amazon said the employee refused to quarantine after testing positive for COVID-19.
In a statement to AFP, Amazon defended its actions on workplace safety, social distancing and noted that it's implementing its employee testing program.
The business also disputed claims it was stifling employee speech.
Spokeswoman Lisa Levandowski said the employees involved were dismissed “not for talking publicly about working conditions or safety, but rather, for repeatedly violating internal policies.”
Levandowski added that Amazon already provides what many unions have been seeking, including a higher base wage, health advantages and career opportunities.
“She said the business seeks “an excellent employment experience” along with offering “a world-class customer experience (while) respecting rights to choose a union.”
Alternatives?
Analyst Patrick Moorhead of Moor Insights & Strategy said Amazon is getting heightened scrutiny because of its growing global influence and as a result of the vast wealth of Bezos.
Moorhead said Amazon also brought on a few of its woes using its highly public search for a second headquarters which highlighted tax breaks for the tech giant.
But Moorhead said Amazon is “not profiting” from the coronavirus crisis, and really should be credited for some 150 measures taken like the pooling of high-performance computing for researchers.
“If you think about the alternative of shutting down Amazon, so many persons wouldn’t get the supplies that they want. You’d have a significant number of people unemployed,” he said.
