Wednesday, January 1, 2014

Amazon - A Not-So-Merry Christmas

Christmas is one of the peak seasons for shopping where people shop their heart out. Most of the companies try and give the best possible offers to lure more and more customers towards them, especially the online websites. The internet mammoth Amazon (AMZN) will need to rethink its strategies for Christmas this year, as the employees in Germany are going in for a strike as depicted by the Verdi Union.

The Verdi union said workers would strike at Amazon's logistic centers in Bad Hersfeld and Leipzig and also in Graben. Next, they will target Seattle –Amazon's headquarters, on Monday. On Tuesday, the strike continues in Werne. They are trying to convince the top management to match the payment terms which they believe is biased and not justified in comparison with the other centers. The union believes that the distinction of payment based on the fact that these workers are Logistic workers and qualify for a lower term of payment is not justified.

On the other hand, Amazon is on a hiring spree as they have planned to hire 15,000 extra staff to meet the requirements for Christmas. Amazon Europe's vice president Tim Collins said that these temporary staffs would become permanent staffs.

The battle between management and staff could prove vital for the year-end performance. One side they need extra staffs to meet the requirements, the other side, the existing pool of around 9000 workers are planning to strike out. Amazon's management better try to resolve these union issues or else this would prove to be a golden opportunity for its competitors especially eBay(eBay). eBay is using Facebook(FB) and its database to help users select the appropriate gift with the development of its e-Bay Gift Engine. E-bay will surely keep a close eye on this activity to ensure they can leverage the maximum out of it.

Way-out?

The Management on the other side believes that the category of these workers classified as 'Logisitic Workers' are already paid above average as compared t! o the industry standards. This conflict of interest could prove trivial and thus they need to look into this matter seriously. They need to not only ensure that they can come up with a reasonable solution but also come up with it very fast. As the union has planned it very strategically to strike at a time when the company needs its employees the most. This has already given Verdi union an upper hand on the possible round table discussions.

With Christmas closing by, the expectations of customers shopping online is to not only get a good deal but also to get the gifts and items on time. This will test the mettle of all these online websites to ensure customer satisfaction. Will Amazon be able to resolve these problems? Or will e-bay have the last laugh?


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