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Amazon (AMZN) Faces Strike in Italy Over Working Condition Issues
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Amazon (AMZN - Free Report) received a jolt in the form of a 24-hour worker strike in Italy on Monday as the online orders as well as the demand for quick delivery continue to rise during the ongoing pandemic.
Notably, almostthe entire logistics operation of the company in the countryalong with the third-party delivery service providers joined the strike, which was called by FILT-CGIL, FIT-CISL and Uiltrasporti unions.
Reportedly, 75% of Amazon warehouse workers and delivery employeesin Tuscany, Florence and Pisa participated in the strike.
The workers and employees have called the strike for better working conditions in the pandemic, which poses major life risks. They have raised concerns over hectic working schedules and shifts, the pace of work, and job security when contracts change.
Further, they have demanded access to Covid-19 allowance for operations.
Disruption at Amazon
The workers’ walkout during the challenging scenario, where online shopping orders are surging, is a huge concern for Amazon.
Warehouses aid the company in storing and shipping products, and handling returns quickly. These are crucial for Amazon as they help in providinga better shopping experience to its customers. Also, the company’s robust delivery network helps in the ultrafast delivery of orders.
The latest strike shows the continuation of the workers’ protests in Europe and the United States for better coronavirus safety measures.
We note that Europe and the United States remain key markets for Amazon’s e-commerce business. Thus, the latest move of the Italian workers does not bode well for the company.
Reportedly, there are 40,000 workers in Amazon's delivery systems and 9,500 long-term staffs working in its logistics unit in Italy.
Meanwhile, Amazon’s spokesperson has said that less than 10% of its employees and around 20% of third-party workers joined the strike.
Further, the company has reportedly claimed that the workers are already availing themselvesbetter and safer work conditions, with standard payand strong career growth opportunities.
Additionally, Amazon’s strengthening initiatives for the welfare of its workers and employees remain noteworthy. At the beginning of the pandemic, the company’s workers started receiving face masks and getting temperature checks with COVID testing facilities.
In addition to this, the company is now taking strong efforts to deliver vaccine doses to its employees.
These above-mentioned facts are likely to continue aiding Amazon’s sales growth and market position, which, in turn, is expected to continue instilling investor optimism in the stock.
Long-term earnings growth rates for Five Below, AutoNation and Americas CarMart are pegged at 32.82%, 11.17% and 13.55%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Amazon (AMZN) Faces Strike in Italy Over Working Condition Issues
Amazon (AMZN - Free Report) received a jolt in the form of a 24-hour worker strike in Italy on Monday as the online orders as well as the demand for quick delivery continue to rise during the ongoing pandemic.
Notably, almostthe entire logistics operation of the company in the countryalong with the third-party delivery service providers joined the strike, which was called by FILT-CGIL, FIT-CISL and Uiltrasporti unions.
Reportedly, 75% of Amazon warehouse workers and delivery employeesin Tuscany, Florence and Pisa participated in the strike.
The workers and employees have called the strike for better working conditions in the pandemic, which poses major life risks. They have raised concerns over hectic working schedules and shifts, the pace of work, and job security when contracts change.
Further, they have demanded access to Covid-19 allowance for operations.
Disruption at Amazon
The workers’ walkout during the challenging scenario, where online shopping orders are surging, is a huge concern for Amazon.
Warehouses aid the company in storing and shipping products, and handling returns quickly. These are crucial for Amazon as they help in providinga better shopping experience to its customers. Also, the company’s robust delivery network helps in the ultrafast delivery of orders.
The latest strike shows the continuation of the workers’ protests in Europe and the United States for better coronavirus safety measures.
We note that Europe and the United States remain key markets for Amazon’s e-commerce business. Thus, the latest move of the Italian workers does not bode well for the company.
Reportedly, there are 40,000 workers in Amazon's delivery systems and 9,500 long-term staffs working in its logistics unit in Italy.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Amazon’s Stance
Meanwhile, Amazon’s spokesperson has said that less than 10% of its employees and around 20% of third-party workers joined the strike.
Further, the company has reportedly claimed that the workers are already availing themselvesbetter and safer work conditions, with standard payand strong career growth opportunities.
Additionally, Amazon’s strengthening initiatives for the welfare of its workers and employees remain noteworthy. At the beginning of the pandemic, the company’s workers started receiving face masks and getting temperature checks with COVID testing facilities.
In addition to this, the company is now taking strong efforts to deliver vaccine doses to its employees.
These above-mentioned facts are likely to continue aiding Amazon’s sales growth and market position, which, in turn, is expected to continue instilling investor optimism in the stock.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are Five Below (FIVE - Free Report) , AutoNation (AN - Free Report) and Americas CarMart (CRMT - Free Report) . All the three stocks carry 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 rates for Five Below, AutoNation and Americas CarMart are pegged at 32.82%, 11.17% and 13.55%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>