
We have an update to our early April posting regarding the threatened labor strike at Amazon.com distribution facilities in Germany.
The Financial Times and other media report that a one-day work stoppage actually occurred yesterday in three separate distribution centers located in Germany. About 500 workers took part in the work stoppage at the Leipzig facility, while several hundred more were reported as joining a work stoppage among two distribution facilities near Bad Hersfeld. Striking workers demand to be paid at a similar rate to other mail order retailers while Amazon maintains that German staffs are logistics workers and are paid according to prevailing rates of that sector.
FT and other European business analysts are messaging this action as the most persistent reputational challenge faced by Amazon. No disruption in shipments was anticipated in this one-day action but tensions obviously remain.