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Amazon Workers in Germany Continue Strikes for Better Pay

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Amazon.com Inc. (AMZN - Free Report) is again facing a strike called by German employees in three of its warehouses. The workers alleged that poor pay and unfair working conditions are the primary reasons behind the strike.

Per reports, German labor union — Verdi — went on a strike at the company’s distribution warehouses located in Bad Hersfeld, Koblenz and Leipzig.

Reportedly, the workers would continue the strike till Saturday if their demands are not met.

Notably, Germany remains one of Amazon’s largest European markets. It is the company’s second-biggest market after the United States. Thus, the latest move of the German workers could disrupt the company’s capacity to some extent, in turn impacting sales.

Amazon.com, Inc. Price and Consensus

 

Bottom Line

Workers at Amazon’s distribution centers in Germany have been calling such strikes since May 2013, demanding the right for collective bargaining, proper working conditions and regard for their efforts.

To cater to increasing demand in Europe, several fulfillment centers have been opened to ensure smooth delivery despite persistent problems. The centers are crucial for the company as these help in providing better shopping experience to customers.

It reportedly stated that the participation in the strikes was not huge and the stoppages will not affect operations.

Amazon’s strengthening initiatives are focused on providing an enhanced shopping experience with the help of robust product offerings, deep discounts on various items, Prime program, and expanding freight and delivery services.

These endeavors are likely to further drive sales in many countries and aid it in winning the confidence of customers.

Zacks Rank & Stocks to Consider

Amazon currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) , Itron, Inc. (ITRI - Free Report) and Fiverr International Ltd. (FVRR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for MACOM Technology, Itron and Fiverr is currently projected at 15%, 25% and 44.2%, respectively.

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