Amazon strike: First formal walkout on British soil begins today
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.
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.”
“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.
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.”
One of Britain’s biggest housebuilders is exploring a £1bn takeover bid for Cala Group, a rival player in the sector which has been put up for sale.
Sky News has learned that Persimmon, which has a market value of £4.74bn, is leaning towards submitting an offer for Cala ahead of a bid deadline next week.
City sources said it would be a strong contender to buy Cala, whose homes have a significantly higher average sale price than those of Persimmon.
Insiders expect Cala, which is being auctioned by Legal & General (L&G), to command a price tag of about £1bn.
If Persimmon is successful in the auction, it would mark the York-based company’s biggest acquisition for years.
Under Roger Devlin, its chairman, and chief executive Dean Finch, the company’s share price has rallied by over 20% in the last year.
In a trading update last month, Persimmon said it was on track to deliver growth in new home completions this year to up to 10,500.
The Cala auction comes amid a general election campaign in which new home provision is expected to figure prominently.
Both main parties are likely to set out new policies to stimulate housebuilding growth, according to sources.
Analysts said this weekend that other housebuilders were also expected to consider bids for the L&G-owned company.
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These could include, they said, Persimmon’s larger rival, Taylor Wimpey, and Avant Homes, which is owned by Elliott Advisors and Berkeley DeVeer.
Persimmon is the UK’s third-largest housebuilder by market capitalisation, behind Taylor Wimpey and Barratt Developments.
Both Persimmon and Taylor Wimpey were among eight housebuilders named by the Competition and Markets Authority in February over suspicions they had exchanged commercially sensitive information.
A takeover of Cala by another major housebuilder would underline fresh momentum in the industry’s consolidation, after Barratt Developments unveiled a £2.5bn deal to acquire rival Redrow.
The prospective sale of Cala represents the first significant strategic move by its new chief executive, Antonio Simoes.
Bankers at Rothschild are overseeing the auction.
Mr Simoes described Cala as “a very strong business” during an earnings call earlier this year on which he was quizzed about the housebuilder’s future ownership.
L&G took full control of the business in 2018.
Cala reported a slide in half-year profits last autumn, citing a “challenging market”.
The company has a long-term goal to build 3,000 homes annually.
Persimmon and L&G declined to comment on Saturday.
Business
Ex-Post Office boss Paula Vennells admits removing reference to Horizon IT system from Royal Mail prospectus
Former Post Office boss Paula Vennells has admitted to amending the legal document Royal Mail issued to would-be investors before it became publicly owned to remove mention of the flawed Horizon IT system.
Data from the accounting software created by Fujitsu was used to prosecute more than 700 sub-postmasters for theft and false accounting.
Many more victims lost their homes, livelihoods and good reputation to repay non-existent shortfalls.
Now the inquiry set up to establish a clear account of the introduction and failure of Horizon has heard during Ms Vennells’s third and final day of questioning that she removed “at the very last minute” reference to Horizon from the prospectus Royal Mail issued before it was listed on the London Stock Exchange.
A prospectus is a legal and financial document detailing key information for potential company investors.
It was the first time the issue was raised with Ms Vennells.
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Paula Vennells breaks down in tears again
She said: “It was flagged to me that in the IT section of the Royal Mail prospectus, there was reference to – I can’t remember the words now – but risks related to the Horizon IT system… the line that was put in said that no systemic issues had been found with the Horizon system.”
Ms Vennells wanted the reference removed as, “the Horizon system was no longer anything to do with the Royal Mail group” she said, and contacted the company secretary to have the reference removed.
Based on this action Ms Vennells wrote to a colleague “I have earned my keep on this”.
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She was at the top of Post Office for 12 years and served as its chief executive for seven of those, from 2012 to 2019.
In at times emotional testimony, Ms Vennells said she “loved the Post Office” and worked “as hard as I possibly could to deliver the best Post Office for the UK”.
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