The smile turned upside down as labor unrest complicates the world
according to Amazon.
first thing to remember,” writes air cargo great Bill Boesch, “is
that Amazon is not an airline but a unique
e-commerce platform controlling its door-to-door operations to provide
free next-day or 2-day shipping for its products. “As a result,
in the U.S., Amazon is not covered by the Railway Labor Act nor is it
“Amazon hubs – unlike FedEx and UPS – are
Amazon Is What Is Next
“Amazon’s concept is the next stage in the metamorphosis
of the air cargo business.
“Their approach almost guarantees full aircraft by tweaking
demand through running sales on high-margin consumer products during low
Prime Week Speak
“Prime Week is an example.
“In order to run their operation as efficiently as possible,
they have high productivity standards just like FedEx and UPS.
“But as their strategy provides for a steady state of
package flow, they have managed to reduce down time, albeit at the expense
of their line workers who are subject to strict monitoring and heavy manual
“If they underestimate the results of these sales the
strain on the manual processes in their fulfillment centers can be overwhelming.
“Amazon pays competitively and offer good benefits (except
time off) but have strict quality control methods including constant electronic
monitoring of workers.
“Employees that do not meet the standards are coached
and then terminated if they continue to fall below the productivity standard.
Bigger Than Expected
“Amazon marketing is among the best in the world and
their growth in sales for prime week 2019 appears to be higher than expected.
“Amazon realizes its growth rate is huge and that is
one of the reasons they are building two more fulfillment hubs in the
Wake Up Call?
“Amazon’s leadership and strategy are sound and
they will recover from this labor situation, but it may be a wake-up call
for them as they expand internationally, where labor laws are stricter.
Back To The Future
“Make no mistake, the Amazon model will permanently
change the air package system and the true question is how FedEx, UPS,
DHL, etc. will react.
“In the end Amazon’s leadership will adjust as
they value their people, but you need to be good to be on their team.
“Amazon will handle the union threat one way or another,
and use the lessons they have learned in this strike to be an even better
company,” Bill Boesch assures.
Making The Case For Robotics?
It is unfortunate and maybe a bit sad to see that a number
of different agendas is driving the unrest at Amazon including some politically
motivated ones that are in play.
Strike action is never a happy situation. In today’s
world, productivity is key to success and in certain parts of the world,
sorry to say, there are people who just don’t seem to get that.
What the strikers seem to not realize is that they are making
a case for more robotics and artificial intelligence to take over their
Clear The Air
So let’s ditch the rhetoric and get some clear dialogue
between management and workers as key to avoiding pain on either side.
Amazon Management has to be sensitive about the workers’
plight and be prepared to compromise and make the workplace a happy one,
which means that they should look for balance as the path to achieving
greater flexibility, as their opportunistic expansion continues otherwise
Google seems to have got it right.
Whistle While You Work
C’mon get happy Amazon.
A happy work place increases growth in customer satisfaction.
Happiness also generates team spirit so that the truly crushing
workload driving the Amazon runaway success story has a real chance to
make winners all around.