Amazon UK offers term-time contracts to warehouse workers

Unions welcome move but push for higher wages

An Amazon warehouse near Leeds

Image:
An Amazon warehouse near Leeds

Amazon UK is introducing a new contract that enables parents and grandparents working in the company's warehouses to opt for term-time-only employment.

Under this arrangement, individuals have the opportunity to take a six-week holiday during the summer, as well as two weeks each during the Easter and Christmas holidays.

Amazon said workers who choose term-time-only contracts will still receive full-time benefits.

Neil Travis, regional operations director at Amazon, said he hopes the initiative will encourage more individuals back into the workplace.

"We spent a lot of time listening to our employees and one of the things that we were learning is that they really wanted more flexible opportunities," Travis told the BBC.

Claire McCartney, a senior policy adviser from the Chartered Institute of Personnel and Development, said she expects term-time working to have a positive effect on attracting and retaining employees.

Amazon's new contracts come as the company is dealing with a union recognition bid and ongoing strike action in Coventry.

The GMB union, which is engaged in a battle with Amazon for recognition, said that while flexible working arrangements are appreciated, the majority of workers are seeking improved wages.

"I don't think this is what they're looking for right now," GMB's senior organiser, Amanda Gearing, said.

"They want more money in their pocket, what they're telling us is they can't live on poverty pay."

Employees at Amazon's Coventry warehouse have gone on strike for a total of 16 days this year, including a two-day strike last week.

Employees are demanding at least £15 an hour to deal with the cost of living crisis.

Earlier this year, Amazon announced it would raise the minimum starting wage for its operational workers in the UK by up to 50 pence, increasing the starting wage to between £11 and £12 per hour, depending on the location.

As of April this year, the UK's minimum wage for anyone aged over 23 is £10.42.

Gearing described the new pay rate as "an insult" to workers.

Amazon, which employs more than 70,000 people in the UK, has long faced criticism for its labour practises.

Employees have accused the company of offering subpar working conditions in its distribution centres and warehouses, and of interfering in unionisation votes.

GMB has submitted an application for statutory recognition to the Central Arbitration Committee (CAC), asserting that over half of the workforce at the Coventry warehouse supports union representation.

The Coventry site employs approximately 1,300 individuals. According to GMB, around 800 of those employees are now members of the union.

Amazon has said it does not consider union recognition to be "appropriate", expressing a preference for direct communication with its employees instead of involving a third party in the process.

"The GMB have made a formal application to CAC and we are working with the CAC as part of that process. We continue to focus on engaging directly with our employees and we continue to offer a really attractive rate of pay and comprehensive benefits," Mr Travis said.

Amazon said last month that minimum pay at its UK warehouses had increased by 10% over the past seven months and by more than 37% since 2018.

The company has the option to challenge the GMB's calculations regarding the number of employees in the warehouse, which could potentially impact the decision made by the CAC.

The committee is expected to reach a decision after several weeks of careful consideration.