Union boss questions public contracts for Amazon amid ‘union-busting’ concerns

Amazon should be at risk of losing taxpayer-funded contracts if it fails to “treat workers with respect”, according to a union boss.

GMB general secretary Gary Smith accused the online giant of using “despicable” tactics to stop workers at its Coventry site of unionising and questioned how it could be right for the company to receive more than £1 billion in public contracts in the last year.

In July, the GMB announced that Amazon workers in Coventry had voted by 49.5% in favour of union recognition – falling just short of the required majority.

Amazon responded by saying it places “enormous value on engaging directly with our employees” and said it has “always worked hard to listen to them, act on their feedback, and invest heavily in great pay, benefits and skills development”.

Mr Smith said the ambition for the new Labour Government has to be “higher than just cleaning up the Tory mess”, adding its “huge procurement powers will be critical”.

Union recognition

He told Labour Party conference in Liverpool: “GMB members have been fighting to get union recognition at Amazon in Coventry.

“The tactics used by this company to try and union-bust have been despicable and our members will keep up the fight, but Government has to step up too.

“In the last year, Amazon received over £1 billion in public contracts and how can that be right when they do everything possible to stop their workers unionising?

“Our Labour Government needs to be clear with Amazon: if you want to keep trousering hundreds of millions of pounds of taxpayers’ cash, they need to treat workers with respect.”

Steve Garelick, delegate for Ruislip, Northwood and Pinner Constituency Labour Party, said procurement money needs to be focused on companies that support workers’ rights, specifically on safety and access to unions.

He told conference: “The Government spends a vast amount of money on procurement each year. This money goes to a wide range of businesses, from small local firms to large multinational corporations such as Amazon.

“It is essential that we ensure this money is spent wisely and it’s used to support businesses that provide good working conditions for their employees.

“One way to do this is to require procurement partners to create access to unions.”

He added: “I am no stranger to Amazon’s doorstep and pay is not the only issue that is part of any agreement. The question is why are many companies avoiding giving workers a voice?

“By taking these steps, we can ensure that government procurement pounds are being used to support businesses that provide good work conditions for their employers.”

The motion moved by GMB, and seconded by the Community union, includes calls for the Government to “fully partner” with trade unions to “co-design” Labour’s plans to “make work pay” and for a guarantee that shipbuilding contracts are built and procured in UK shipyards.

Choice

In a statement, Amazon said: “Our employees have the choice of whether or not to join a union. They always have.

“Across Amazon, including in our fulfilment centres, we place enormous value on having daily conversations and engagement with our employees. It’s a strong part of our work culture. We value that direct relationship and so do our employees.

“We regularly review our pay to ensure we offer competitive wages and benefits.

“Our starting pay has increased to a minimum of over £28,000 a year – that’s a 35% increase over two years.

“We also work hard to provide great benefits, a positive work environment and excellent career opportunities.

“These are just some of the reasons people want to come and work at Amazon, whether it’s their first job, a seasonal role or an opportunity for them to advance their career.”