Connect with us

Published

on

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.”

More on Amazon

“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.

Image:
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.”

Continue Reading

Business

Basic questions unanswered by Shein at Business and Trade Committee despite firm eyeing London listing

Published

on

By

Basic questions unanswered by Shein at Business and Trade Committee despite firm eyeing London listing

A representative for one of the world’s biggest fast fashion retailers, Shein was unable to answer questions from MPs over where it sources its cotton from.

Shein’s general counsel for Europe Middle East Africa (EMEA) Yinan Zhu was asked if the company sells products containing cotton from China, mainly the region of Xinjiang, where China has been accused of subjecting members of the Uyghur ethnic group to forced labour.

Speaking at the Business and Trade Committee, Ms Zhu was asked several times whether the company uses cotton supplied from China.

After being pressed on the matter, she said she would have to write to the committee with an answer.

She said: “For detailed operational information and other aspects, I am not able to assist. I will have to write back to the committee afterwards.”

She added: “Obviously, we comply with laws and regulations everywhere we do business in the role. And we have supplier code of conducts, we have robust systems and procedures in place and policies in place.

“We also have very strong enforcement measures in place to ensure we adhere to these standards that are expected in our supply chain.”

More on China

Read more
UK long-term borrowing costs highest this century
Rising evidence of price hike threat as Next is latest to warn of challenges

When asked if the company believed forced labour took place in Xinjiang, Ms Zhu reminded MPs of the “agenda of the committee, as I understand it, we’re looking at upholding standards”, before adding: “I’m only able to answer the questions that are relating to our business.”

Shein was founded in China in 2012 and is now a leader in fast fashion, shipping to 150 countries.

Committee chairman Liam Byrne challenged Ms Zhu, but she repeated she would have to write to the committee afterwards.

Mr Byrne said the parliamentary committee was “horrified” by the lack of information provided and said Zhu’s statements gave lawmakers “zero confidence” in the integrity of Shein’s supply chains.

“The reluctance to answer basic questions has frankly bordered on contempt,” Mr Byrne said.

The top lawyer’s responses were said to be “ridiculous” and “very unhelpful and disrespectful” by committee member Charlie Maynard.

Please use Chrome browser for a more accessible video player

Shein listing would ‘wake up London capital markets’

When Ms Zhu said she was answering to the best of her ability, the Lib Dem MP said: “That is simply not true. We’ve asked you some very, very, very simple questions and you are not giving us straight answers.”

Ms Zhu also said she was unable to say anything about reports the online giant was preparing to list as a public company on the London Stock Exchange.

Sky News reported exclusively in June that Shein had prepared to file a prospectus with the Financial Conduct Authority for approval ahead of a potential float on the exchange.

But when asked on Tuesday if this was true, and why the company had stopped pursuing a New York Stock Exchange float, Ms Zhu said she was unable to comment on any IPO (initial public offering) speculation as it was not her remit.

Continue Reading

Business

UK long-term borrowing costs highest this century

Published

on

By

UK long-term borrowing costs highest this century

UK long-term borrowing costs have hit their highest level since 1998.

The unwanted milestone for the Treasury’s coffers was reached ahead of an auction of 30-year bonds, known as gilts, this morning.

The yield – the effective interest rate demanded by investors to hold UK public debt – peaked at 5.21%.

At that level, it is even above the yield seen in the wake of the mini-budget backlash of 2022 when financial markets baulked at the Truss government’s growth agenda which contained no independent scrutiny from the Office for Budget Responsibility.

Money latest: Do I need to pay five-year old parking fine?

The premium is up, market analysts say, because of growing concerns the Bank of England will struggle to cut interest rates this year.

Just two cuts are currently priced in for 2025 as investors fear policymakers’ hands could be tied by a growing threat of stagflation.

More on Rachel Reeves

The jargon essentially covers a scenario when an economy is flatlining at a time of rising unemployment and inflation.

Growth has ground to a halt, official data and private surveys have shown, since the second half of last year.

Critics of the government have accused Sir Keir Starmer and his chancellor, Rachel Reeves, of talking down the economy since taking office in July amid their claims of needing to fix a “£22bn black hole” in the public finances.

Please use Chrome browser for a more accessible video player

Chancellor reacts to inflation rise

Both warned of a tough budget ahead. That first fiscal statement put businesses and the wealthy on the hook for £40bn of tax rises.

Corporate lobby groups have since warned of a hit to investment, pay growth and jobs to help offset the additional costs.

At the same time, consumer spending has remained constrained amid stubborn price growth elements in the economy.

Please use Chrome browser for a more accessible video player

UK economy showed no growth

Read more:
Growing threat to finances from rising bills
Why UK energy bills could rise further this year

Higher borrowing costs also reflect a rising risk premium globally linked to the looming return of Donald Trump as US president and his threats of universal trade tariffs.

The higher borrowing bill will pose a problem for Ms Reeves as she seeks to borrow more to finance higher public investment and spending.

Tuesday’s auction saw the Debt Management Office sell £2.25bn of 30-year gilts to investors at an average yield of 5.198%.

It was the highest yield for a 30-year gilt since its first auction in May 1998, Refinitiv data showed.

This extra borrowing could mean Ms Reeves is at risk of breaking the spending rules she created for herself, to bring down debt, and so she may have less money to spend, analysts at Capital Economics said.

“There is a significant chance that the Office for Budget Responsibility (OBR) will judge that the Chancellor Rachel Reeves is on course to miss her main fiscal rule when it revises its forecasts on 26 March. To maintain fiscal credibility, this may mean that Ms Reeves is forced to tighten fiscal policy further,” said Ruth Gregory, the deputy chief UK economist at Capital Economics.

Continue Reading

Business

Growing threat to finances from rising bills

Published

on

By

There is mounting evidence that consumers are facing hikes to bills on many fronts after Next became the latest to warn of price rises ahead.

Continue Reading

Trending