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Amazon (AMZN) cuts off its relationship with a German security firm after a documentary aired...

Amazon (AMZN) cuts off its relationship with a German security firm after a documentary aired last week in the nation highlighted the harsh treatment of temporary workers hired by the company. A flurry of calls to boycott Amazon followed the public television broadcast.
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  • HS
    , contributor
    Comments (215) | Send Message
     
    " ... The allegations reflect the challenges Amazon and other Internet retailers face in Europe reconciling their discount-pricing advantage with European labor norms, where wage and job-protection standards are generally stronger than in the U.S. To keep costs low—especially in high-cost Germany, its biggest market after the U.S.—Amazon relies heavily on temporary workers, whom it can hire quickly and later let go to adjust to seasonal needs. In doing so, it often turns to third parties over which it has less oversight to hire and manage the workers.

     

    The documentary's claims sparked a flurry of consumer calls to boycott Amazon in Germany, where the company generated $8.7 billion of its $61 billion in global revenue last year. The program also prompted the country's labor minister to demand more details from the Internet retailer on the working conditions of its seasonal workers. "These are serious allegations, which is why all the facts must be on the table as soon as possible," said Labor Minister Ursula von der Leyen in a German newspaper interview...."
    19 Feb 2013, 06:59 AM Reply Like
  • Rabbit888
    , contributor
    Comments (2) | Send Message
     
    Whether it's Amazon or Apple (or any other US company with offshore and subcontracted operations) there is simply no substitute for frequent and unannounced onsite visits and other diligence measures to ensure company policy and values are being maintained. In my international management resposibilities, onsite accountability for foreign operations is equal if not greater in priority with financial performance.
    19 Feb 2013, 03:07 PM Reply Like
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