The California State Senate passed a bill on Sept. 9 aimed at regulating Amazon's
"In the Amazon warehouse space, what we're trying to take on is this increased use of quotas and discipline based on not meeting the quotas without a human factor in dealing with a reason why a worker might not make a quota," the bill's author, Assemblywoman Lorena Gonzalez told reporters.
The Warehouse Workers Protection Act, or AB-701, passed by the Senate, 26-11, still has to be approved in the State Assembly. Following that vote, AB-701 will be sent to California Governor Gavin Newsom who has yet to say whether or not he will veto or sign the bill.
"With this law, California is leading the way in regulating the brave new world of work where companies like Amazon are allowed to impose their intrusive and all-encompassing production systems," Christy Hoffman, general secretary of UNI Global Union, representing roughly 20 million service workers, told CNBC.
According to Hoffman, Amazon's labor practices have "pernicious effects on the health of millions of workers."
Under the new law, employers in the state will be required to provide all labor quota information to both the employees and the state's government agencies. This reporting will help the state monitor the other provision of the bill prohibiting employers from enforcing labor quotas that either put workers in danger or deny them their state-mandated break times. The law would also provide workers with a mechanism to challenge employer quotas.
Currently, Amazon maintains a complex set of algorithms in order to track the productivity of its warehouse workers. The algorithms monitor how many packages each employee processes per hour, as well as how long and how often employees take breaks. If the algorithm notes that the employee has been taking too many breaks, they may be fired by management.
While, in theory, it might seem fair to require your workers not to take too many breaks, in practice, these quotas increase on-the-job injuries. According to a June study from the Strategic Organizing Center (SOC), another union group, amazon workers are hurt on the job more than their counterparts at other companies' factories. The SOC's conclusion was that Amazon's "obsession with speed" leads to higher rates of injuries.
"Amazon brags it pays workers above the minimum wage. What they don't tell you is what those jobs are really like," Jennifer Bates, an Amazon employee, testified before the U.S. Senate in March. "Working at Amazon [warehouses] is no easy thing. The shifts are long. The pace is super fast. You're constantly being watched and monitored. They seem to think you are another machine."
The same month that the SOC study was released, Amazon announced that it would be adjusting its system to take averages from a longer period of time in order to "help ensure the Time off Task policy is used in the way it was intended," according to Amazon's consumer boss, Dave Clark. According to Clark, the system is meant to catch issues with tools, not "under-performing employees". It's unclear whether or not there were or will be follow-up studies into the effects of these changes.
Unsurprisingly, business groups have come out en masse against the bill, claiming it includes unfair restrictions and creates undue legal burdens.
"AB 701 impacts distribution centers across industries and will increase the cost of living for all Californians, kill good-paying jobs and damage our fragile supply chain," Rachel Michelin, head of the California Retailers Association (CRA), told CNBC. Amazon is on the board of CRA.
California is often a bellwether when it comes to changes in labor laws across the country. If AB-701 passes, other states could create their own versions.
Earlier this year, Amazon defeated a union push in its Bessemer, AL, warehouse, but that vote may soon be getting a do-over. Amazon continues to argue that the vote was a representation of the workers' true wishes.
