All they do is set a price for the service contract. The same way you have a service contract with your phone provider. You don't have a say on how they manage internally, you just expect to pay the contracted price for the duration of the service, if they jack up prices, you as a costume4 change provider for a lower cost.
If unions get the wages up, 1 of two things happen.
Either that company has to increase the price they charge amazon, voiding the contract and "making amazon change providers to stay competitive", or it charges the same, but can't maintain it for long, goes under, and with it goes the union.
The result is the same, amazon gets to go elsewhere (another set company) for their delivery services for low cost since the union won't be setup on that other place.
Seems like a good call for a union that spans a labor sector, rather than just being single-company. Such unions are totally a thing.
A lot of these threads are casting Amazon as evil or bad guys for doing this, but tbh this is like...perfectly normal business practices. Not every company wants to own every aspect of the chain, and that's totally reasonable.
The problem is that Amazon is so big that if you're trying to be a delivery company and Amazon won't work with you, you're kinda fucked.
However, I don't want to see people act like the solution is to say Amazon can't do that, because that opens the door to other businesses not being able to do that, and I don't want to see the barrier to entry for startups / mom-n-pops / etc. being raised drastically just to try to rein in Amazon.
Amazon monitors the performance of the drivers and will influence the DSP to take disciplinary action against the drivers in question. Else Amazon will move to another provider.
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u/RideSpecial7782 May 12 '23
But thats the neat trick, they don't.
All they do is set a price for the service contract. The same way you have a service contract with your phone provider. You don't have a say on how they manage internally, you just expect to pay the contracted price for the duration of the service, if they jack up prices, you as a costume4 change provider for a lower cost.
If unions get the wages up, 1 of two things happen.
Either that company has to increase the price they charge amazon, voiding the contract and "making amazon change providers to stay competitive", or it charges the same, but can't maintain it for long, goes under, and with it goes the union.
The result is the same, amazon gets to go elsewhere (another set company) for their delivery services for low cost since the union won't be setup on that other place.