For years, Amazon warehouse staffers have complained about unsafe working conditions and the injury risks they face when rushing to fill packages and get them to customers in two days or less.
While Amazon claims its injury rate is coming down, facility-level data released last month from the U.S. Labor Department’s Occupational Safety and Health Administration underscores worker concerns, showing that in 2022 Amazon laborers were injured at a rate of 6.9 for every 100. In January, OSHA investigators cited Amazon for “failing to keep workers safe.”
Industrywide numbers for last year won’t be released until November, but OSHA head Doug Parker said Amazon has a history of injury rates that are far higher than others in the warehouse category. In 2021, Amazon’s injury rate was almost 1.5 times the industry average. At some Amazon warehouse locations, Parker said, the rate was as high as 12 workers out of 100.
“That’s more than 10% of the workforce every year who are receiving injuries on the job that are serious enough that they have to take time away from their jobs,” Parker said, regarding those warehouses. “We know that it’s affecting thousands of workers and it’s very alarming.”
Bobby Gosvener is one former worker living with pain.
Gosvener worked at an Amazon warehouse in Tulsa, Oklahoma, until 2020. He said after a conveyor belt malfunctioned that December he was left with a herniated disk that required neck surgery. He’s now on permanent partial disability.
“I have to live with this injury for the rest of my life,” Gosvener said. “I hate to this day even to order through Amazon because it’s so convenient, but every time I look at a box, I think of the process of what went through it and who got hurt in the midst of it.”
Jennifer Crane works through pain at an Amazon warehouse in St. Peters, Missouri, after hurting her wrist in October. She said she tore a ligament from “packing a case of sparkling water repetitively all day, along with dog food and Gatorades.” She wears a brace to help her get through the day.
“After like two hours of heavy lifting, I’m taking pain meds,” Crane said.
She needs the job. Crane became a single mom to her seven sons when her husband died of a heart attack in 2019.
“I’ve got to be able to support them. I have bills to pay,” she said. Crane said she knows she could look for other work, “but right now I’m in the fight to try to make it better there for everybody.”
Amazon worker Jennifer Crane at her house outside St. Louis, Missouri, in 2022.
Missouri Workers Center
Crane is circulating a petition at her warehouse asking for a slower pace of work, more breaks, ergonomic changes and equipment updates.
In response to those accounts of injury and pain, Amazon spokesperson Maureen Lynch Vogel said in a statement, “Amazon worked diligently to accommodate both employees and ensure they had what they needed not only to work safely but also to recover. Any claim to the contrary is false.”
Amazon’s self-reported injury rate fell 9% between 2021 and 2022. Beyond warehouses, the e-commerce giant says its injury rate across all worldwide operations, some 1.5 million employees, dropped nearly 24% from 2019 to 2022.
“I don’t dispute that their injury rates may have gone down some over a period of time, but they’re still not good enough,” OSHA’s Parker said.
Strategic Organizing Center (SOC), a coalition of labor unions, crunched OSHA’s new data and found Amazon’s injury rate was more than double that of all non-Amazon warehouses in 2022. According to the report, Amazon employed 36% of U.S. warehouse workers in 2022, but was responsible for more than 53% of all serious injuries in the industry.
Kelly Nantel, an Amazon spokesperson, said by email that the group’s findings “paint an inaccurate picture.”
“The safety and health of our employees is, and always will be, our top priority, and any claim otherwise is inaccurate,” Nantel said. “We’re proud of the progress made by our team and we’ll continue working hard together to keep getting better every day.”
“Amazon’s apparent attitude about this is to deny that they have a problem,” said Eric Frumin, SOC’s health and safety director.
Federal scrutiny
Federal authorities are now looking into the health and safety issues, with inspections across seven Amazon warehouses in five states last summer. OSHA issued citations at all seven locations.
“At every single facility we found serious hazards that were putting workers at serious risk of bodily harm,” Parker said. “What is most concerning is the scale. We have every reason to believe that the types of processes where we found hazards in these facilities are processes that are used in Amazon facilities across the country.”
OSHA also acted on referrals from the U.S. Attorney’s Office for the Southern District of New York, which pointed to similar hazards in its own investigation of the facilities. Two more warehouses were cited for safety violations by Washington state’s Department of Labor. OSHA also cited Amazon for 14 record-keeping violations, finding that the company failed to properly report worker injuries and illnesses.
Amazon is appealing all the citations. If they’re upheld, the company will have to pay its first ever federal fines for worker musculoskeletal injuries. So far, they total nearly $152,000. The Washington state DOJ fines add an additional $81,000.
Amazon has a market cap of roughly $1 trillion and last year generated revenue of over $500 billion.
“There’s no amount of money that the Labor Department can impose as a penalty that’s going to make a difference to a company that runs through billions of dollars a day,” Frumin said. “What matters is, are they going to respect the need for their workers to be safe?”
In a rare case of federal cooperation, the Department of Justice is alsoinvestigating Amazon, asking if the company “engaged in a fraudulent scheme designed to hide the true number of injuries,” according to a January press release. The DOJ’s civil division is looking into whether Amazon executives made “false representations” to lenders about its safety record to obtain credit.
In a statement, Amazon told CNBC, “We strongly disagree with the allegations and are confident that this process will ultimately show they’re unfounded.” The company said it’s expanding the team responsible for record-keeping.
‘If you’re rushing, you’re going to make mistakes’
For Daniel Olayiwola, who’s worked at Amazon since 2017, the primary concern is the pressure to work quickly.
“You have to make sure these rates are met,” Olayiwola said. “Otherwise you’re going to be getting a write-up. Then you’re not going to be getting any opportunities to switch positions or move up at all.”
Olayiwola introduced a proposal at last year’s annual shareholders meeting, asking Amazon to stop tracking workers’ rate of work and what’s called “time off task.” The measure failed.
“It is a big contributor to the amount of injuries we get at Amazons worldwide,” Olayiwola said. “I can hands down say that. If you’re rushing, you’re going to make mistakes and someone’s going to get hurt.”
Amazon worker Daniel Olayiwola poses outside his warehouse in San Antonio, Texas, on March 9, 2023.
Lucas Mullikin
Olayiwola drives a forklift to pick up heavy items in a warehouse in San Antonio, Texas. He said the slowest acceptable rate at the facility is about 22 an hour, “meaning you’d have to pick an item every three minutes.”
“Which is crazy if the item is a mirror, a dresser, a bed frame,” Olayiwola said. “But you have to keep picking these items and you have to drop them off at these designated drop zones.”
An Amazon spokesperson said in an email that the “pace of work” isn’t referenced in any of OSHA’s citations. But the Southern DIstrict of New York’s investigations at six warehouses cited pace of work as an issue. And three states — New York, California, and Washington — have passed legislation seeking to curtail the use of productivity quotas at Amazon warehouses.
In the meantime, Olayiwola has sought support from United for Respect, a retail worker advocacy group, and he hosts a podcast called “Surviving Scamazon.” Like Crane, he wants to support his family while working to produce change from the inside. His wife is pregnant with their second child, and he calls his work at Amazon a “necessary evil.”
OSHA says similar investigations are currently underway at 10 other Amazon sites, with broader investigations pending at dozens more.
Thomas Plantenga, CEO of used fashion resale app Vinted, on center stage during Web Summit 2024 in Lisbon, Portugal.
Harry Murphy | Sportsfile for Web Summit Getty Images
LISBON, Portugal — Tech CEOs in Europe are urging region al countries to take bolder action to tackle Big Tech’s dominance and counter reliance on the U.S. for critical technologies like artificial intelligence after Donald Trump’s electoral win.
The Republican politician’s victory was a key topic among prominent tech bosses at the Web Summit conference in Lisbon, Portugal. Many attendants said they’re unsure of what to expect from the U.S. president-elect, citing this unpredictability as a core challenge at present.
Andy Yen, CEO of Swiss VPN developer Proton, says Europe should echo American protectionism and adopt a more “Europe-first” approach to technology — in part to reverse the trend of the last two decades, during which much of the Western world’s most important technologies, from web browsing to smartphones, have become dominated by a handful of large U.S. tech firms.
VPNs, or virtual private networks, are services that encrypt data and mask a user’s IP address to hide browsing activity and bypass censorship.
“It’s time for Europe to step up,” Yen told CNBC on the sidelines of Web Summit. “It’s time to be bold. It’s time to be more aggressive. And the time is now, because we now have a leader in the U.S. that is ‘America-first,’ so I think our European leaders should be ‘Europe-first.'”
One key push for the past decade from the European Union has been to take legal action and introduce tough new regulations to tackle the dominance of large technology players, such as Google, Apple, Amazon, Microsoft and Meta.
As Trump prepares to come into power for a second mandate, concerns have now mounted that Europe might reel in its tough approach to tech giants out of fear of retaliation from the new administration.
US Big Tech playing ‘extremely unfairly’
Proton’s Yen, for one, urged the EU not to water down its attempts to rein in America’s tech giants.
“Europe has been thinking in a very globalist mindset. They’re thinking we need to be fair to everybody, we need to open our market to everybody, we need to play fair, because we believe in fairness,” he told CNBC.
“Well, guess what? The Americans and the Chinese didn’t get the memo. They have been playing extremely unfairly for the last 20 years. And now they have a president that is extremely ‘America-first.'”
Mitchell Baker, former CEO of American open internet non-profit Mozilla Foundation, said the EU’s DMA has led to meaningful changes for the Firefox browser, with activity increasing since Google implemented a “choice screen” on Android phones that enables users to select their search engine.
“The change in Firefox new users and market share on Android is noticeable,” Baker said. “That’s nice for us — but it’s also an indicator of how much power and centralized distribution that these companies have.”
She added, “This change in usage because of one choice screen isn’t the full picture. But it is an indicator of the kind of things that consumers can’t choose and that businesses can’t build successfully because of the way the tech industry is structured right now.”
Thomas Plantenga, CEO of Lithuania-headquartered used clothing resale app Vinted, urged Europe to take the “right choices” to ensure the continent can “fend for ourselves” and does not get “left behind.”
“If you look very realistically at what countries do, they try to take care of themselves and they try to form coalitions to be stronger themselves, and as a coalition be stronger,” Plantenga told CNBC in an interview. “We have a lot of very talented, well-educated people.”
“We need [to] ensure that we can take care of our own safety, that we can take care of our own energy, that we ensure to keep on investing in our education and innovation so that we can keep up with the rest [of the world],” he stressed. “If we don’t, then we’ll be left behind. In every collaboration, it’s always a trade. And if we don’t have much to trade, we become weaker.”
‘AI sovereignty’ now a key battleground
Another theme that attracted much chatter on the ground at Web Summit was the idea of “AI sovereignty” — which refers to countries and regions localizing critical computing infrastructure behind AI services, so that these systems become more reflective of regional languages, cultures and values.
With Microsoft becoming a key player in AI, concerns have surfaced that the maker of the Windows operating system and Office productivity tools suite has secured a dominant position when it comes to foundational AI tools.
The tech giant is a key backer behind ChatGPT maker OpenAI, whose technology it also heavily uses in its own products.
For some startups, Microsoft’s decision to embrace AI has resulted in harmful, anti-competitive effects.
Last year, Microsoft hiked the fees it charges search engines to use its Bing Search APIs, which allow developers access to the tech giant’s backend search infrastructure — in part because of higher costs attached to its AI-powered search features.
“They’re gradually reducing our revenue — we’re still relying on them — and that reduces our capacity to do things,” Christian Kroll, CEO of sustainability-focused search engine Ecosia, told CNBC. “Microsoft is a very fierce competitor.”
CNBC has reached out to Microsoft for comment.
Ecosia recently partnered with fellow search provider Qwant to build a European search index and reduce dependence on U.S. Big Tech to deliver web browsing results.
Meanwhile, the European Union’s AI Act, a landmark artificial intelligence law with global implications, introduces new transparency requirements and restrictions on companies developing and using AI.
The laws are likely to have a big impact on predominantly U.S. tech firms, since they’re the ones doing much of the development of — and investment in — AI.
With Trump set to come into power, it’s unclear what that could mean for the global AI regulatory landscape.
Shelley McKinley, chief legal officer of code repository platform GitHub, said she can’t predict what Trump will do in his second term — but that businesses are planning for a range of different scenarios in the meantime.
“We will learn in the next few months what President-elect Trump will say, and in January we will start seeing some of what President Trump does in this area,” McKinley said during a CNBC-moderated panel earlier this week.
“I do think it is important that we all, as society, as businesses, as people, continue to think about the different scenarios,” she added. “I think, as with any political change, as with any world change, we’re still all thinking about what are all of the scenarios we might operate.”
The Space Exploration develops a product called Nyx, a reusable capsule that can be launched from rockets into space carrying passengers and cargo.
The Exploration Company (TEC) announced Monday it has raised $160 million to fuel development of its capsule that is designed to take astronauts and cargo to space stations.
Venture capital firms Balderton Capital and Plural were the lead investors in the round which also included French government-backed investment vehicle French Tech Souveraineté and German government-backed fund DeepTech & Climate Fonds.
TEC’s core product is Nyx, a capsule that can be launched from rockets into space carrying passengers and cargo. Nyx is reusable so once it has dropped its payload, it can re-enter the Earth’s atmosphere and be used for the next mission.
“It’s a big market, and it’s growing about a bit more than 10% per year because more nations want to fly their astronauts and more nations want to go to the moon,” Hélène Huby, founder and CEO of TEC, told CNBC in an interview.
“So there is an increased demand for sending people to stations, sending cargo to stations,” she said.
This part of the market has very few players. Some of the biggest are SpaceX which has a capsule called Dragon. There are also rivals from China and Russia.
“We said, ‘okay, let’s build this capacity in Europe so that Europe can have its own capsule and also the world needs an alternative solution. [We] cannot only bet on SpaceX,” Huby said.
TEC is currently developing the second version of Nyx which it expects to launch next year, followed by a final version in 2028. This model will be partly financed by the European Space Agency.
Huby said the company has signed $800 million in contracts to use its capsule. These include mission contracts with companies including Starlab, which is designing a new space station, and Axiom Space.
There is increasing activity in space among nations including China, the U.S. and India. One of the most ambitious projects is the NASA-led Gateway, which will be the first space station to orbit the moon.
“If you have more people, you also have a need for more cargo. So this is what is happening around the Earth and around the moon,” Huby said.
Huby sees TEC being a key player when it comes to developing the technology that is needed to return cargo to Earth once it has been in space.
“This is also where we where we believe our vehicle is going to play an important role,” Huby said.
Alex Karp, CEO of Palantir Technologies speaks during the Digital X event on September 07, 2021 in Cologne, Germany.
Andreas Rentz | Getty Images
Palantir shares continued their torrid run on Friday, soaring as much as 9% to a record, after the developer of software for the military announced plans to transfer its listing to the Nasdaq from the New York Stock Exchange.
The stock jumped past $64.50 in afternoon trading, lifting the company’s market cap to $147 billion. The shares are now up more than 50% since Palantir’s better-than-expected earnings report last week and have almost quadrupled in value this year.
Palantir said late Thursday that it expects to begin trading on the Nasdaq on Nov. 26, under its existing ticker symbol “PLTR.” While changing listing sites does nothing to alter a company’s fundamentals, board member Alexander Moore, a partner at venture firm 8VC, suggested in a post on X that the move could be a win for retail investors because “it will force” billions of dollars in purchases by exchange-traded funds.
“Everything we do is to reward and support our retail diamondhands following,” Moore wrote, referring to a term popularized in the crypto community for long-term believers.
Moore appears to have subsequently deleted his X account. His firm, 8VC, didn’t immediately respond to a request for comment.
Last Monday after market close, Palantir reported third-quarter earnings and revenue that topped estimates and issued a fourth-quarter forecast that was also ahead of Wall Street’s expectations. CEO Alex Karp wrote in the earnings release that the company “absolutely eviscerated this quarter,” driven by demand for artificial intelligence technologies.
U.S. government revenue increased 40% from a year earlier to $320 million, while U.S. commercial revenue rose 54% to $179 million. On the earnings call, the company highlighted a five-year contract to expand its Maven technology across the U.S. military. Palantir established Maven in 2017 to provide AI tools to the Department of Defense.
The post-earnings rally coincides with the period following last week’s presidential election. Palantir is seen as a potential beneficiary given the company’s ties to the Trump camp. Co-founder and Chairman Peter Thiel was a major booster of Donald Trump’s first victorious campaign, though he had a public falling out with Trump in the ensuing years.
When asked in June about his position on the 2024 election, Thiel said, “If you hold a gun to my head I’ll vote for Trump.”
Thiel’s Palantir holdings have increased in value by about $3.2 billion since the earnings report and $2 billion since the election.
In September, S&P Global announced Palantir would join the S&P 500 stock index.
Analysts at Argus Research say the rally has pushed the stock too high given the current financials and growth projections. The analysts still have a long-term buy rating on the stock and said in a report last week that the company had a “stellar” quarter, but they downgraded their 12-month recommendation to a hold.
The stock “may be getting ahead of what the company fundamentals can support,” the analysts wrote.