Read The Times Australia

Daily Bulletin

Burnout by design? Warehouse and shipping workers pay the hidden cost of the holiday season

  • Written by: Christopher O'Neill, Research fellow, Monash University
Burnout by design? Warehouse and shipping workers pay the hidden cost of the holiday season

What’s the meaning of Christmas? For many, it’s about feasting, family, and napping while watching the cricket.

But for e-commerce giants like Amazon, Christmas is the most lucrative time of the year. During the 2020 holiday season, Amazon processed more than A$6.6 billion in sales.

And for the warehouse and shipping workers who actually get these purchases to their destinations, the run-up to Christmas means long hours and more demanding work, often under poor conditions and with little job security.

In our research project on “automated precarity”, we are trying to learn more about workers’ experiences to understand whether conditions in Australian e-commerce warehouses are comparable to those documented overseas.

The Christmas rush

This year, almost four in five Australian households are expected to buy Christmas presents online.

The frenzy really kicks off with the manufactured “shopping holiday” of Black Friday, which follows the US Thanksgiving holiday but has become a global event. A single day wasn’t enough, so we now also have Cyber Monday, focused explicitly on consumer spending on e-commerce platforms.

E-commerce and Christmas have become so entwined that Dave Clark, a senior executive at Amazon, calls his company’s warehouses “Santa’s workshops”.

Read more: Black Friday for Amazon workers: the human costs behind consumer convenience

‘Tis the season of hiring and firing

We want to understand how things like seasonal shopping events and the promise of warehouse automation are shaping conditions for the growing number of logistics workers employed in e-commerce.

In Australia, Amazon has made extensive use of labour-hire temps engaged through recruitment agencies. Amazon Australia alone will mobilise more than 1,000 seasonal workers in the lead-up to the Christmas rush.

Amazon Australia alone is hiring more than 1,000 seasonal workers as the Christmas rush begins. Revere / AAP

This temporary workforce often experiences some of the most intense working conditions. Aside from no job security, many workers are reportedly required to work at an accelerated pace for incredibly long hours, with the added expectation they will be available on call for the duration of the shopping season.

Read more: 3 ways 'algorithmic management' makes work more stressful and less satisfying

Burnout by design?

Traditional thinking in worker management suggests there are benefits to retaining workers who improve their skills and build loyalty to employers.

But in the United States, Amazon churns through workers at an alarming pace. Its annual employee turnover rate of 150%, nearly twice the industry average, has reportedly even led some executives to worry about “running out of workers”.

The urgency of seasonal shopping means Amazon can push workers to the max, making them work long hours doing physically demanding tasks at breakneck speeds.

Managers do not necessarily need to fire people when the rush ends – instead research and reporting suggests workers leave of their own volition, because their bodies simply cannot handle the strain any longer.

In a recent article, Canadian researcher and workers’ rights advocate Mostafa Henaway describes his experiences working in an Amazon fulfilment centre:

Amazon does not openly push people out the door. It lets the work do that on its own.

Amazon makes it easy for warehouse staff to quit. In the US, the work-management app A to Z includes a handy ‘Submit Voluntary Resignation’ button. Screenshot via Reddit / suspici0uspackage

These conclusions are supported by reporting on working conditions at Amazon in different countries where the company operates, such as the UK and Italy.

Regardless of intent, burning through workers at a rapid rate is a consequence of how the work and conditions are designed.

Amazon workers in the US report the app they use to manage their schedules even has a handy “submit voluntary resignation” button to make the process convenient and automated.

Internal documents reportedly show Amazon executives “closely track” and set goals for a metric called the “unregretted attrition rate”, which is the percentage of workers the company is happy to see leave every year. This applies to Amazon employees, rather than temporary labour, but could suggest churning through workers is an intentional management strategy.

As well as synchronising labour needs to seasonal demands, rapid turnover of workers makes organisation and unionisation less likely. In the context of an ongoing fight by Amazon workers to unionise, shorter-term workers are less likely to have the opportunity to become union members and push for better conditions.

We asked Amazon Australia whether “burnout by design” is a deliberate strategy. Director of Operations Craig Fuller said:

These claims are baseless. We’re proud to offer a safe, enjoyable and supportive work environment for our fulfilment centre team members all year round. As with all retailers, the holiday season is our busiest time of year, and we work hard to ensure that everyone working in our buildings is supported and has a positive experience at work.

This year we have onboarded around 1,000 additional seasonal workers around Australia to support our existing workforce over the festive season. While they are hired to work over the holidays, these seasonal opportunities can also present a path to employment and a longer-term career at Amazon and we have many examples of seasonal workers who have chosen to stay on and build their career with Amazon Australia.

We continue to place tremendous value and focus on the wellbeing and safety of our team.

Amazon’s new heavily automated warehouse in Sydney will still need plenty of human workers. Dean Lewins / AAP

Will automation fix it?

Online retailers are making big investments in automation.

Amazon is aiming to finish a new A$500 million warehouse in Western Sydney by Christmas. It will be the biggest in Australia, equipped with swarms of robots ferrying items around 200,000 square metres of floor space.

Increasing automation and reports of looming massive job losses can make workers feel threatened by the risk of being made obsolete by technology.

Read more: Coles and Woolworths are moving to robot warehouses and on-demand labour as home deliveries soar

But this highly robotic workplace will still have plenty of human workers. There are plenty of things even the most advanced warehouse robots still aren’t good at, or that humans can do more cheaply.

Workplace automation is arguably less about replacing workers and more about pushing them to keep up with the pace of machines and algorithms. More speed takes its toll: Amazon warehouses in the US reportedly have an injury rate 80% higher than the industry standard.

The holidays are here to stay

We can expect corporations to further expand shopping holidays, following in the footsteps of Amazon’s mid-year revenue-boosting “Prime Day” in June. The exhausting and precarious conditions of seasonal work are likely to spread to the rest of the year.

We fear convenient online shopping comes at the expense of burnout, exhaustion, and precarious jobs. This situation may become permanent without improved labour rights and tighter corporate regulations.

Authors: Christopher O'Neill, Research fellow, Monash University

Read more https://theconversation.com/burnout-by-design-warehouse-and-shipping-workers-pay-the-hidden-cost-of-the-holiday-season-172157

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Sydney Academy Partnership Targets Talent Development for Travel and Hospitality

VFS Global Academy’s Australian expansion will focus on practical skills and career development thro...

How Strategic Corporate Gifting Boosts Client Retention and Team Morale

As the calendar pushes towards the end of the year, business leaders across Australia begin evalua...

The Importance of Reliable Plumbing Services During Home Renovations

A freshly renovated bathroom can make an ordinary Monday morning feel a little more inviting. The ne...

Backyard Living Options for Campbelltown Homes: What Works Best?

You know that feeling at the end of a long, busy week when all you want is a calm spot outdoors, whe...

Smart Wardrobe Storage Ideas for Small Sydney Apartments and Bedrooms

A well-designed wardrobe is one of the most useful things a home can have. It's meant to keep clothe...

Colorbond Fencing in Australia: Costs, Colours, Rules and What Actually Lasts

Drive through almost any Australian suburb built in the last thirty years and you are looking at the...

Why Your Dental Clinic Is Not Getting Enough New Patient Bookings From Google

Introduction SEO for Dentist is not just about getting a dental clinic to appear somewhere on Goo...

Low Water Pressure in Sunbury: Is the Problem Inside Your Home or Outside It?

Low water pressure is one of those problems that can send a homeowner in the wrong direction. A we...

4 Beige Rugs for Beautiful and Comfortable Wooden Flooring

Wooden flooring already brings warmth and character to a room, but a beige rug can make that found...