14 May

Why Amazon Continues to Suffer Labor Stress


Polish workers want their wages doubled

Amazon (AMZN) continues to struggle with issues related to wages and working conditions for its employees. The company’s warehouse workers in Poland have threatened strike action if their demands for significant pay increases aren’t met. The workers have demanded that Amazon nearly double their hourly rates. At the moment, Amazon pays its Polish warehouse workers a minimum wage of ~$4.58–$5.10 per hour. Amazon says it has created more than 14,000 jobs in Poland, and Reuters has reported that ~1,000 Amazon workers in the country are members of labor unions.

Amazon has also met with labor challenges in Europe recently as labor unions have pressured it for pay increases and better working conditions for their members. In January, some Amazon warehouse workers in Spain went on strike, and in April, some Amazon workers in Germany put down their tools to push the company to boost their wages.

Why Amazon Continues to Suffer Labor Stress

Amazon’s bottom line is resilient despite wage hikes

Although wage hikes can drive up costs and crimp a company’s profitability, Amazon has actually reported stronger profitability figures since raising wages for its American and British workers. Amazon began paying higher wages to its American and British workers in the fourth quarter of 2018. In the quarter, its operating margin expanded to 5.2% from 3.5% a year earlier, and its profit increased to $3.0 billion from $1.9 billion a year earlier.

In the first quarter of 2019, Amazon recorded an operating margin of 7.4%, up from 3.8% a year earlier. Its profit rose to $3.6 billion from $1.6 billion a year earlier. JD.com (JD), eBay (EBAY), and Etsy (ETSY) made profits of $1.1 billion, $521 million, and $31.6 million, respectively, in the first quarter. Shopify (SHOP) suffered a loss of $24.2 million in the first quarter.

Latest articles

After returning just 3.2% last year, McDonald’s stock has risen 12.2% this year as of May 17.

21 May

Why Did Bernstein Upgrade Kroger?

WRITTEN BY Ralph Nathan

Today, Bernstein upgraded Kroger (KR) from “market perform” to “outperform,” and it also raised its 12-month price target to $33. Let's take a closer look.

21 May

Why Tech Stocks Had to Fall Sooner or Later


Tech stocks underperformed again on May 20 after the trade spat escalated, with Huawei in the eye of the storm.

This morning, Chinese electric carmaker NIO (NIO) was trading with 2.8% gains for the day at $4.37.

Today, Aphria (APHA) announced that it received its fifth license to cultivate cannabis in Germany.

21 May

Why Apple Stock Popped 2.6% Today

WRITTEN BY John Parker

Today, US tech giant Apple (AAPL) was trading on a bullish note after falling in the previous three sessions.