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In this episode we speak to Matt Dalton, consumer sector leader at Forvis Mazars. Matt discussed the biggest challenges facing the retail sector, from cost pressures and wage increases to polarised property markets and geopolitical shocks, and the ways in which retailers can best navigate these. We also explore how short-term cost-cutting could undermine long-term resilience, and how retailers can best remain agile and adaptable in unforecastable times.

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The GMB union has organised a strike for about 300 Amazon warehouse employees out of 1,000 at the e-commerce retailer’s Coventry depot today (Wednesday 25 January), the first to be held in the UK. 

The union has been working to boost its presence at the company, as today’s strike action represents a “breakthrough” for the UK’s union movement. 

Previously, the GMB has struggled to secure a presence within logistics, which employs many on short-term contracts in unsatisfactory working conditions.

According to Amanda Gearing, a senior organiser at the union, the Coventry warehouse was “set to make history” after showing they were “willing to put themselves on the line fighting for what’s right”. 

An Amazon spokesperson said: “A tiny proportion of our workforce is involved. In fact, according to the verified figures, only a fraction of 1% of our UK employees voted in the ballot – and that includes those who voted against industrial action.

“We appreciate the great work our teams do throughout the year and we’re proud to offer competitive pay which starts at a minimum of between £10.50 and £11.45 per hour, depending on location. This represents a 29% increase in the minimum hourly wage paid to Amazon employees since 2018.” 

They added: “Employees are also offered comprehensive benefits that are worth thousands more, including private medical insurance, life assurance, subsidised meals and an employee discount, to name a few.”

However, the GMB states that it could set further strike dates over the summer, as it argues the “competitive” pay the retailer offers lags behind the rates offered for warehouse workers at other companies such as supermarket chain Aldi. 

The union urges the group to raise wages to £15 an hour, which would better match rates paid to employees in the company’s US operations. 

This call to raise salaries comes as the business seeks to eliminate 18,000 jobs in its corporate workforce following a hiring spree during the pandemic

Earlier this month, the business also announced that it would close three warehouses in the UK, which could lead to about 300 job losses in Inverclyde, Scotland, due to the lack of nearby Amazon facilities.

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