Friday, 18 October 2013

Amazon Plots Central European Warehouse Network As German Strike Threat Looms

Amazon is planning to open a series of warehouses in Central Europe after being hit by a series of strikes in Germany.

According to Polish newspaper Puls Biznesu the online giant is exploring the possibility of opening three locations in Poland and two in the Czech Republic.

The Financial Times said German workers have demanded better pay from the firm and a Christmas strike threat looms. But the newspaper says that the firm relies on 'razor-thin' profit margins and that the business model 'does not sit well with unionised European work forces'.

Polish and Czech centres, well within striking distance of Germany, could allow the firm to reduce the scale of its operation within Germany. Polish and Czech wages are also lower than in western Europe and far fewer workers belong to unions.

Amazon confirmed the Polish plans to the FT, saying the centres would 'ensure Amazon continues to keep its promise of prompt and reliable delivery to European customers , especially during the ramp-up phase before the holiday season'.

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