Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Amazon Minneapolis Warehouse Workers Planning Prime Day Strike
“Just as Amazon is finalizing plans for its big Prime Day summer sale next week, the company is facing more labor problems in its Minneapolis-area warehouses. Workers at its Shakopee, Minnesota, fulfillment center are planning a six-hour strike during Prime Day to push for better working conditions and worker protections, Bloomberg reported Monday.”
B. Amazon ranks among the top 10 largest components of the S&P index. Since a good many here invest in VFINX or other index funds, I’d guess Amazon to be among the top 25 or so stocks owned by board members.
C. Recently, top performing mutual fund manager, David Giroux stepped outside his normal (value focused) investment perimeters to buy Amazon for his top performing PRWCX (Up 18% YTD), so impressed has he become with the company’s long term growth prospects.
Clearly, Amazon is of importance to investors and a major contributor to the U.S. economy. Here’s some considerations on which I was hoping the topic might precipate discussion:
1. With the Federal Reserve repeatedly stating their view that inflation in the U.S. is too low, might a strike at Amazon result in upward pressure on wages nationwide and, consequently, result in inflation running hotter than it now is? ThevFed seems especially bewildered why wages haven’t gone up faster. They attrubute the lack of “wage-push” inflation as a major reason inflation re,aims stubbornly low (in their opinion)
2. The above also has relevance & repercussions for bond investors - as inflation is generally linked to higher interest rates. Higher interest rates would mean losses on many bonds / bond funds.
3. In conjunction with the higher prices the tariffs war is precipitating, might increased labor costs at Amazon cause a sharp jump in prices consumers pay - not just at Amazon, but across the retail level? Again, this is inflation linked, but coming from the consumer price side.
4. Labor unions have been on a decline for 25 - 30 years. That loss of bargaining power by labor has had profound impacts on corporations, their competitiveness and profitability, and the living standards and retirement planning of workers. Might this threatened strike mark some type of turning point in labor / management relations?
5. Retirement planning is just as important to Amazon’s vast work force as it is to you and me. (Heck, some probably even read the board.) So a look at the type of retirement those workers can reasonably expect might dovetail with all the emphasis the subject receives here at MFO. My guess would be retirement security & planning represent the #1 concern among readers and posters.
How things have changed.. I worked for major super market w unionships many yrs ago... They disagreed on major aspects of new negotiations an d contract... then company went out and hired new non-union workers... The union and us learnt very quickly and came back to work next day. No Questions asks and met old previous demands
Comments
View here, the 21 minute video.
Regards,
Ted
https://www.wsj.com/articles/15-minimum-wage-would-leave-1-3-million-american-jobless-lift-as-many-out-of-poverty-11562611503
Take A Tour Of A Fulfillment Center::
https://www.aboutamazon.com/amazon-fulfillment-center-tours/where-you-can-tour-an-amazon-fulfillment-center-in-north-america/
P,S. That reminds me, I need to order some items for Prime Delivery !
But FYI:
A. Amazon is a major force in the U.S. economy with $232 billion in reported sales in the U.S. in 2018. https://www.statista.com/topics/846/amazon/
B. Amazon ranks among the top 10 largest components of the S&P index. Since a good many here invest in VFINX or other index funds, I’d guess Amazon to be among the top 25 or so stocks owned by board members.
C. Recently, top performing mutual fund manager, David Giroux stepped outside his normal (value focused) investment perimeters to buy Amazon for his top performing PRWCX (Up 18% YTD), so impressed has he become with the company’s long term growth prospects.
Clearly, Amazon is of importance to investors and a major contributor to the U.S. economy. Here’s some considerations on which I was hoping the topic might precipate discussion:
1. With the Federal Reserve repeatedly stating their view that inflation in the U.S. is too low, might a strike at Amazon result in upward pressure on wages nationwide and, consequently, result in inflation running hotter than it now is? ThevFed seems especially bewildered why wages haven’t gone up faster. They attrubute the lack of “wage-push” inflation as a major reason inflation re,aims stubbornly low (in their opinion)
(Update) Here’s today’s Congressional testimony: “Pointing to a weaker global economy, rising trade tensions and chronically low inflation, Chairman Jerome Powell signaled Wednesday that the Federal Reserve is likely to cut interest rates late this month for the first time in a decade.”
https://www.news10.com/news/national/powell-testimony-to-be-studied-for-signs-of-coming-rate-cut/
2. The above also has relevance & repercussions for bond investors - as inflation is generally linked to higher interest rates. Higher interest rates would mean losses on many bonds / bond funds.
3. In conjunction with the higher prices the tariffs war is precipitating, might increased labor costs at Amazon cause a sharp jump in prices consumers pay - not just at Amazon, but across the retail level?
Again, this is inflation linked, but coming from the consumer price side.
4. Labor unions have been on a decline for 25 - 30 years. That loss of bargaining power by labor has had profound impacts on corporations, their competitiveness and profitability, and the living standards and retirement planning of workers. Might this threatened strike mark some type of turning point in labor / management relations?
5. Retirement planning is just as important to Amazon’s vast work force as it is to you and me. (Heck, some probably even read the board.) So a look at the type of retirement those workers can reasonably expect might dovetail with all the emphasis the subject receives here at MFO. My guess would be retirement security & planning represent the #1 concern among readers and posters.