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    Now Jeff Bezos gets to experience the joy of dealing with unions

    Now Jeff Bezos gets to experience the joy of dealing with unions

    “None of [’s] 90,000 workers are unionized”

    WaPo, apparently trying to send a message of future independence, has an article today about lobbying by, founded and run by new-WaPo owner Jeff Bezos.

    Deep down in the article is an interesting point about and unions (emphasis mine):

    – Amazon’s fight with unions. The New York Times recently reported that Amazon has been clashing with labor unions in Germany over wages. “The subtext,” the paper reported, “is Amazon’s opposition to unions in its warehouses as a general principle, because the company fears unions will slow down the kind of behind-the-scenes innovation that has propelled its growth.”

    That’s not the Times’s editorializing. That was the explicit view of Dave Clark, Amazon’s vice president of worldwide operations and customer services, who explained to the newspaper that “Amazon views unions as intermediaries that will want to have a say on everything from employee scheduling to changes in processes for handling and packaging orders. Amazon prizes its ability to quickly introduce changes like these into its warehouses to improve the experience of its customers.”

    So far, Amazon hasn’t clashed directly with unions in the United States. None of its 90,000 workers are unionized. But the company has come under heavy scrutiny in recent years for its labor practices at its warehouses. A widely read report in the The Morning Call two years ago documented poor conditions at its Pennsylvania facilities, including heat-stressed workers. (The company says it has since installed air conditioning.)

    What’s interesting about it is not only what it says about Amazon’s success, but WaPo’s failure as a unionized operation. 

    The unions are expecting no short-term change under Bezos, but are noting an upcoming contract battle, via Jim Romenesko (underlining added, bold italics in original):

    Here’s what Washington Post Guild unit co-chair Freddy Kunkle wrote on the union’s closed Facebook page:


    Many of you are wondering what the sale of the Post will mean for the union. Although there are still many questions that will need to be cleared up, it appears that the sale will not affect the Post’s relationship with the Guild.

    Filings with the SEC say the new owner – Nash Holdings, LLC, which is presumably Jeff Bezo’s Delaware partnership — has agreed to honor all existing collective bargaining agreements and pension liabilities. The new owner also agreed to maintain all base salaries for at least one year.

    Katharine Weymouth, in her FAQ’s, also says that she and the new owner “look forward to working with” the Post’s unions.

    Put that all together with assurances from Don Graham and Katharine that there will be no immediate change in management, staff or operations, and it appears as if there is likely to be no change in the Post’s relationship with the Guild.

    The only wild card here is that our two-year contract expired on July 26, and the Post, as allowed by the contract, has given notice that the contract’s provisions will be terminated on Aug. 9. So there is no collective bargaining agreement for the new owners to honor. Yet many of the terms also remain in effect as we continue negotiating toward a new two-year contract.

    So right now, we intend to stay the course by working toward a new labor agreement and hope, based on all of the above, that the new owners are just as eager to reach a new and fair contract with us.


    Very, very interesting. 

    It made no sense why someone like Bezos, who build by avoiding unions so as to allow quick business innovations, would buy a stodgy, moribund unionized organization like WaPo.  For $250 million he could have built a news organization from scratch.

    Maybe the lack of an existing collective bargaining agreement at WaPo was part of the calculation.  If so, Bezos should expect a fight, as this article from late June reflects, Washington Post Guild: ‘The Post would like to fire you’:

    The Washington-Baltimore Newspaper Guild says a Washington Post proposal for a new agreement with the union “would give managers the power to fire anyone for any reason” and also inserts a “poison pill that would make it even harder for the union to collect dues at the end of the next contract.”

    Its proposal says management “reserves the right to terminate an employee for attendance and performance problems” without a written warning and a suspension as is currently required, “in appropriate cases.”

    Another proposal, the bulletin says, would “eliminate important layoff provisions.” …

    BULLETIN: The Post would like to fire you — and get rid of the union too
    How would you like to work in a place where you could be fired for no reason and without warning? Or be let go with two weeks’ notice or two weeks’ pay as a show of thanks for years of service? And where there would be no union to help you?
    If the Post has its way, that’s where you’ll soon be….

    You need to join the Guild. You need to sign up your friends and prepare for action. You need to join us in fighting for a moral workplace.

    Good luck, Jeff, you’ll need it.


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    The Washington Post Newspaper Guild announced that:

    “Many of you are wondering what the sale of the Post will mean for the union. Although there are still many questions that will need to be cleared up, it appears that the sale will not affect the Post’s relationship with the Guild.

    Bezos has agreed to honor all existing collective bargaining agreements, pension liabilities and at least temporarily hold salary levels where they are. The clunker here is that the Guild’s labor contract expired July 26 and the WaPo has already given notice that the contract provisions will be terminated on August 9.

    So timing is everything.

    jdkchem | August 6, 2013 at 6:16 pm

    Freddy Kunkle? Would this be “A Nightmare on 15th St. NW”?

    Sharpshooter | August 7, 2013 at 6:16 am

    Bezos’ first exposure to the union is probably going to be his tires being slashed.

    He’ll buy new ones on Amazon.

    Mark Michael | August 7, 2013 at 12:16 pm

    Bezos is a very positive guy who looks on the possibilities of doing exciting things with his various businesses and hobbies. I believe he bought WaPo with that viewpoint. Think how eclectic his interests are both within the business itself and his outside hobbies. And he’s surprisingly good at them.

    Rush Limbaugh remarked that Bezos is very antiunion in his business ventures. He’s in a big squabble in Germany over something with a German union in his operations. (I forget the details.) Honoring the existing WaPo union probably was a short-term concession, but is unlikely to stick over the long-term if Bezos seriously tries to do positive things with his new hobby/business.

    Limbaugh also discussed Bezos’ politics and philosophy a bit. He’s been a big Obama supporter, he supports gay rights, and he also occasionally bills himself a Libertarian! Rush speculated that he really doesn’t have time to focus on politics in depth, given how busy is he running and his many hobbies. More gut level, instinctual rather than highly rational.

    NOW, having said that, he clearly ran into “government red-tape” when Apple and a bunch of publishers challenged his e-book monopoly, his Kindle business, with their “cartel” of price-fixing iTunes-like alternative. He surely also knows that is now big enough in the marketplace that it has attracted the greedy, cynical eyes of the Political Class with their ability to blackmail you with antitrust lawsuits. Get big donations and things magically “fix” themselves. That’s what that whole trial lawyer, class-action lawsuit stuff is all about. Using the AT laws to line your own pockets. [Shakespeare, “First, we kill all of the lawyers…!]

    I’m sure Bezos is a fast learner. I do suspect that his purchase of WaPo is buying silence from a still powerful voice in DC if and when runs afoul of the PC blackmailers in the future. Carlos Slim, the billionaire Mexican “bought” the NYT’s silence with his investment in that property. The NYT has not run a negative story on Slim since he made that investment. Ditto Warren Buffett and his (now former) investment in WaPo, too. Buffett bought silence over his self-dealing political and corporate interests, too. (His life insurance companies benefit from a high estate tax, since annuities are tax-deferred – a dodge from the estate tax. Similar things apply to other aspects of his business. No NYT or WaPo ever point out this obvious self-serving aspect of Buffett’s politics.)

    I do think, though, the primary reason he bought WaPo is because he has some ideas up his sleeve for how to take advantage of its brand name in clever ways nobody has thought of so far. One other commenter pointed out that the “consumers” of high-quality political junky news are spread out over the entire country, but under the current business model for a WaPo, their advertising was stuck in the local DC market. You want the advertising market and the service user market to be pretty much the same thing! (Huh. Common sense.) Well, has the wherewithal to put those 2 groups together he pointed out.

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