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Darren Westwood knows how to stick up for himself.

As a kid, he was bullied in the playground and beaten up in his local town centre. Now he doesn’t take stick from anyone, no matter how big or strong they appear, even if they happen to be one of the biggest companies in the world.

Mr Westwood believes his employer, Amazon, is a bully.

Having slowly grown fed up with pay and working conditions at the company’s warehouse in Coventry – where workers are on their feet all day sorting through goods to send to other warehouses – he has been corralling colleagues to support a strike.

In terms of how quickly couriers delivered orders, Amazon was rated top

After some initial reluctance, he gradually won them over and almost 300 workers are poised to walk out today – marking the first formal strike on British soil for the online giant.

“I don’t get fazed by things. I spent my life growing up and I’m at that stage where I’m not intimidated or worried,” the 57-year-old said.

“During the pandemic, people were thanking us and we appreciated that but Amazon were still making money, while we feel like we’ve been left behind.”

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“The money is there. I know people say that it’s the politics of envy but we’re not asking for his [Jeff Bezos’] yacht or his rocket. We just won’t be able to pay our way. And that’s all we’re asking.”

Unions have traditionally had a hard time penetrating Amazon but the mood among the company’s workforce shifted in August after it offered its workers what many considered to be a paltry pay rise. The online giant lifted the hourly wage by 50p to £10.50 an hour.

Upon hearing the news, workers staged an informal walkout. They were expecting more, especially as the company has enjoyed stellar profits in recent years and inflation is rising at its fastest pace in 40 years.

The GMB union seized the opportunity and helped arrange a strike, with workers voting in favour of formal action just before Christmas.

It’s not just about money, however. Amazon has long been criticised for employing tough productivity targets that require workers to sort through a set number of items per hour.

Failure to do so can result in an “adapt”, a type of warning. Staff are given up to 30-minute breaks a day, only one of which is paid.

“When you think you’ve got to queue up to clock out and then queue up to go through the metal detectors and security, and queue to get your food, that time does evaporate very, very quickly,” Mr Westwood said. “I’ve been one minute late back from a break before and have been given an adapt.”

The loss of up to 300 of its 1,400 workforce in Coventry is unlikely to cause Amazon any major operational problems but management will be keeping a close eye on developments. Across the globe, its workforce has started agitating. In the US, workers at a New York warehouse recently voted to start the company’s first-ever labour union.

The GMB union is calling on Amazon to pay its UK workers £15 an hour to bring their wages in line with their American counterparts, who earn $18 an hour. However, Mr Westwood accepted that it would probably take a lot less than that to settle the dispute.

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Amazon warehouse in Coventry where workers are striking

‘£2 an hour extra would be acceptable’

“I’d be happy if they just increased it by £2. I think £2 an hour extra or £2.50 an hour extra would be acceptable. I think everyone would stop then and people would be happy,” he said.

The company told Sky News that it pays a competitive local wage that has risen by 29% since 2018.

A spokesperson added: “We appreciate the great work our teams do throughout the year and we’re proud to offer competitive pay which starts at a minimum of between £10.50 and £11.45 per hour, depending on location.

“Employees are also offered comprehensive benefits that are worth thousands more – including private medical insurance, life assurance, subsidised meals and an employee discount, to name a few.”

However, workers accuse it of cutting other benefits in the process. Crucially, the 5% pay rise it has given its staff amounts to a real-terms pay cut because inflation, which peaked at over 11% last year, has risen at more than double the pace.

Mr Westwood pointed out that the company has put the cost of its services up to reflect higher rates of inflation, while neglecting to fairly share the spoils with its workforce.

A similar story is playing out across the economy, especially in the public sector, where industrial relations are fracturing under the strain of rampant inflation. Nurses, ambulance drivers, railway workers, teachers and postal workers have all voted to down their tools and march out.

‘Some nights I can’t sleep’

Like some of Amazon’s employees, many of them were repeatedly reminded of their value during the pandemic, when they went out to work when others stayed at home.

“These are good people,” Mr Westwood said. “I know that some people think that we’re unskilled and this is a minimum wage for a ‘minimum job’. But you need us during the pandemic. You applauded us and painted rainbows in the street. We’re the same people.”

“It’s 10 hours a day, standing on your feet. I do 18,000 steps and it takes its toll on people. I’ve got an injury to my shoulder. Some days it’s just so painful. Some nights I can’t sleep, it just keeps me awake. And that’s from the repetitive strain of doing the same job over and over and over and over.”

While Mr Westwood is hopeful that both sides can thrash out a deal, he believes that the major gain will be to increase unionisation within the Amazon workforce to ensure workers continue to stick up for themselves.

He accepts that working for Amazon comes with benefits and many people enjoy their time there but believes the company has a long way to go.

“Colleagues are struggling to pay their bills,” he said. “But we work for one of the richest men in the world, at one of the richest companies in the world, in one of the richest countries in the world… it’s not fair.”

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Bank shares take fright as budget tax hike is floated

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Bank shares take fright as budget tax hike is floated

Shares in UK banks have fallen sharply on the back of a report which urges the chancellor to place their profits in her sights at the coming budget.

As Rachel Reeves stares down a growing deficit – estimated at between £20bn-£40bn heading into the autumn – the Institute for Public Policy Research (IPPR) said there was an opportunity for a windfall by closing a loophole.

It recommended a new levy on the interest UK lenders receive from the Bank of England, amounting to £22bn a year, on reserves held as a result of the Bank’s historic quantitative easing, or bond-buying, programme.

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It was first introduced at the height of the financial crisis, in 2009.

The left-leaning think-tank said the money received by banks amounted to a subsidy and suggested £8bn could be taken from them annually to pay for public services.

It argued that the loss-making scheme – a consequence of rising interest rates since 2021 – had left taxpayers footing the bill unfairly as the Treasury has to cover any loss.

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Why taxes might go up

The Bank recently estimated the total hit would amount to £115bn over the course of its lifetime.

The publication of the report coincided with a story in the Financial Times which spoke of growing fears within the banking sector that it was firmly in the chancellor’s sights.

Her first budget, in late October last year, put businesses on the hook for the bulk of its tax-raising measures.

Ms Reeves is under pressure to find more money from somewhere as she has ruled out breaking her own fiscal rules to help secure the cash she needs through heightened borrowing.

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Is Labour plotting a ‘wealth tax’?

Other measures understood to be under consideration include a wealth tax, new property tax and a shake-up that could lead to a replacement for council tax.

Analysts at Exane told clients in a note: “In the last couple of years, the chancellor has been protective of the banks and has avoided raising taxes.

“However, public finances may require additional cash and pressures for a bank tax from within the Labour party seem to be rising,” it concluded.

The investor flight saw shares in Lloyds and NatWest plunge by more than 5%. Those for Barclays were more than 4% lower at one stage.

A spokesperson for the Treasury said the best way to strengthen public finances was to speed up economic growth.

“Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms,” they added.

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Controversial P&O Ferries boss Hebblethwaite to quit

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Controversial P&O Ferries boss Hebblethwaite to quit

The man dubbed “Britain’s most hated boss” for his controversial policy of sacking hundreds of seafarers and replacing them with cheaper agency staff is to quit.

Sky News can exclusively reveal that Peter Hebblethwaite, the chief executive of P&O Ferries, is leaving the company.

Sources said he had decided to resign for personal reasons.

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Mr Hebblethwaite joined the ranks of Britain’s most notorious corporate figures in 2022 when P&O Ferries – a subsidiary of the giant Dubai-based ports operator DP World – said it was sacking 800 staff with immediate effect – some of whom learned their fate via a video message.

The policy, which Mr Hebblethwaite defended to MPs during subsequent select committee hearings, erupted into a national scandal, prompting changes in the law to give workers greater protection.

Under the new legislation, the government plans to tighten collective redundancy requirements for operators of foreign vessels.

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In a statement issued in response to a request from Sky News, a P&O Ferries spokesperson said: “Peter Hebblethwaite has communicated his intention to resign from his position as chief executive officer to dedicate more time to family matters.

Peter Hebblethwaite gives evidence to a committee of MPs in 2022. Pic: PA
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Peter Hebblethwaite gives evidence to a committee of MPs in 2022. Pic: PA

“P&O Ferries extends its gratitude to Peter Hebblethwaite for his contributions as CEO over the past four years.

“During his tenure the company navigated the challenges of the COVID-19 pandemic, initiated a path towards financial stability, and introduced the world’s first large double-ended hybrid ferries on the Dover-Calais route, thereby enhancing sustainability.

“We extend our best wishes to him for his future endeavours.”

A source close to the company said it anticipated making an announcement on Mr Hebblethwaite’s successor in the near term.

A former executive at J Sainsbury, Greene King and Alliance Unichem, Mr Hebblethwaite joined P&O Ferries in 2019, before taking over as chief executive in November 2021.

Insiders claimed on Friday that he had “transformed” the business following the bitter blows dealt to its finances by the COVID-19 pandemic and – to some degree – by the impact of Britain’s exit from the European Union.

A union protest is shown at the height of the mass sackings  row in 2022
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A union protest is shown at the height of the mass sackings row in 2022

P&O Ferries carries 4.5 million passengers annually on routes between the UK and continental European ports including Calais and Rotterdam.

It also operates a route between Northern Ireland and Scotland, and is a major freight carrier.

The company’s losses soared during the pandemic, with DP World – its sole shareholder – supporting it through hundreds of millions of pounds in loans.

Its most recent accounts, which were significantly delayed, showed a significant reduction in losses in 2023 to just over £90m.

The reduction from the previous year’s figure of almost £250m was partly attributed to cost reduction exercises.

The accounts also showed that Mr Hebblethwaite received a pay package of £683,000, including a bonus of £183,000.

“I reflected on accepting that payment, but ultimately I did decide to accept it,” he told MPs.

“I do recognise it is not a decision that everybody would have made.”

The row over his pay was especially acute because of his admission that P&O Ferries’ lowest-paid seafarers received hourly pay of just £4.87.

Mr Hebblethwaite had argued since the mass sackings of 2022 that the company would have gone bust without the drastic cost-cutting that it entailed.

The company insisted at the time that those affected by the redundancies had been offered “enhanced” packages to leave.

Last October, the then transport secretary, Louise Haigh, said: “The mass sacking by P&O Ferries was a national scandal which can never be allowed to happen again,” adding that measures to protect seafarers from “rogue employers” would prevent a repetition.

“This issue has been ignored for over 2 years, but this new government is moving fast and bringing forward measures within 100 days,” Ms Haigh added.

“We are closing the legal loophole that P&O Ferries exploited when they sacked almost 800 dedicated seafarers and replaced them with low-paid agency workers and we are requiring operators to pay the equivalent of National Minimum Wage in UK waters.

“Make no mistake – this is good for workers and good for business.”

The minister’s description of P&O Ferries as “rogue”, and suggestion that consumers should boycott the company, sparked a row which threatened to overshadow the government’s International Investment Summit last October.

Sky News’s business and economics correspondent, Paul Kelso, revealed that DP World had withdrawn from participating in the event, and paused a £1bn investment announcement.

The company relented after Sir Keir Starmer publicly distanced the government from Ms Haigh’s characterisation of DP World.

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How the US trade war is now targeting you from today

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How the US trade war is now targeting you from today

Donald Trump has cancelled a loophole from today that had allowed consumers and businesses to be spared duties for sending low-value goods to the United States.

The so-called de minimis exemption had applied across the world before Trump 2.0 but the president has taken action – and the UK may soon follow suit – as part of his trade war.

The relief had allowed goods worth less than $800 (£595) to enter the US duty-free since 2016.

But now, low-cost packages face the same tariff rate as other, more expensive, goods.

The reasons for the latest bout of protectionism are numerous and the ramifications are country and purpose specific.

What is changing?

It was no accident that China was the first destination to be slapped with this rule change.

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The duty exemption on low-value Chinese goods was ended in May as US retailers, in fact those across the Western world, complained bitterly that they were being undercut by cheap clothing, accessories and household goods shipped by the likes of Shein and Temu.

From today, Mr Trump is expanding the end of the de minimis rule to the rest of the world.

Why is Trump doing this?

Number of de minimis packages imported in to the US since 2018
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Number of de minimis packages imported in to the US since 2018

The president is not acting purely to protect US businesses.

More duties mean more money for his tariff treasure chest, bolstering the goodies already pouring in from his base and reciprocal tariffs imposed on trading partners globally this year.

The Trump administration has also called out “deceptive shipping practices, illegal material and duty circumvention”.

It also believes many parcels claiming to contain low-value goods have been used to fuel the country’s supplies of fentanyl, with the importation of the illegal drug being used by the president as a reason for his wider trade war against allies including Canada.

How will it apply?

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New tariffs threaten fresh trade chaos

Under the new rules, only letters and personal gifts worth less than $100 (£74) will still be free of import duties.

Charges will depend on the tariff regime facing the country from where the goods are sent.

Fox example, a parcel containing products worth $600 would raise $180 in extra duties when sent from a country facing a 30% tariff rate.

It has sparked chaos in many countries, with postal services in places including Japan, Germany and Australia refusing to accept many items for delivery to the US until the practicalities of the new regime become clearer.

What about the UK?

All goods not meeting the £74 exemption criteria now face a 10% charge because that is the baseline tariff the US has slapped on imports from the UK.

We were spared, if you remember, higher reciprocal tariffs under the so-called “trade deal”.

How will the process work?

All shipping and delivery companies will be wading through the changes, with the big international operators such as DHL, FedEx and the like all promising to navigate the challenge.

Royal Mail said on Thursday that it would be the first international postal service to have a dedicated operation.

It said consumers could use its new postal delivery duties paid (PDDP) services both online and at Post Offices.

But it explained that business customers faced different restrictions to individuals.

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Businesses would be charged a handling fee per parcel to cover additional costs and duties would be calculated based on where items were originally manufactured.

While business account customers could be handed an invoice for the duties, it explained that consumers would have to pay at the point of buying postage.

No customs declaration would be required, it concluded, for personal correspondence.

Is the US alone in doing this?

The answer is no, but it remains a fairly widespread relief globally.

The European Union, for example, removed de minimis breaks back in 2021, making all e-commerce imports to the bloc subject to VAT.

It is also now planning to introduce a fee of €2 on goods worth €150 or less to cover the costs of customs processing.

Should the UK do the same?

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July: The value of ‘de minimis’ imports into Britain

The UK has been under pressure for many years to follow suit and drop its own £135 duty-free threshold as retailers battle the cheap e-commerce competition from China we mentioned earlier.

A review was announced by the chancellor in April.

Sky News revealed in July how the total declared trade value of de minimis imports into the UK in the 2024-25 financial year was £5.9bn – a 53% increase on the previous 12-month period.

Any rise in revenue would be welcomed, not only by UK retailers, but by Rachel Reeves too as she looks to fill a renewed black hole in the public finances.

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