24/7 Insights

• A new Senate report shows that Prime Day worsens working conditions at Amazon.com Inc. (NASDAQ: AMZN).
• It is a black eye for one of America’s largest companies.

After acknowledging Prime Day’s importance to Amazon.com Inc.’s (NASDAQ: AMZN) financials, a new study says that the event from July 16 to July 17 endangers the e-commerce company’s worker safety. The information comes from the Senate Health, Education, and Pension Committee report. It shows that Amazon collected $12.7 billion in products sold to members of its Prime program. The report adds, “But Prime Day is also a major cause of injuries for the warehouse workers who make it possible.”

What This Means for Amazon

The Senate committee calls for more safety measures on Prime during major holidays. The media covered the report broadly, which means Amazon will be under pressure to address the situation. At the root of the problem is the volume of business on days of great customer demand. “Prime Day and the holiday season are characterized by extremely high volume and intense pressure to work long hours and ignore safety guidelines.” In some cases, workers must handle much more than the usual number of orders. To make matters worse, the committee wrote, Amazon knows about the issue.

The study raises the question of how many other companies and their workers face similar challenges. Some days are naturally busier than others in many industries. Are workers added to solve this problem, or are current workers asked to work harder? Is Amazon the exception or the rule? Senator Bernie Sanders addressed the worker safety issue: “The incredibly dangerous working conditions at Amazon revealed in this investigation are a perfect example of the type of corporate greed that the American people are sick and tired of.”

It is too early to say whether the report will affect customer perception of Amazon and its sales or whether the federal government will do anything beyond the new Senate report. Either way, it is a black eye for one of America’s largest companies.

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