For years, worker advocates and government officials have argued that Amazon’s (AMZN) strict production quotas are a major factor behind the high injury rates among warehouse employees. On Sunday, the Senate Committee on Health, Education, Labor, and Pensions, chaired by Senator Bernie Sanders, released a report that revealed Amazon’s own documents link these production quotas to increased injuries.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
However, the e-commerce major has consistently denied these claims, stating its injury rates are improving and are in line with industry averages.
Key Findings of the Senate Investigation
This investigation found that Amazon’s internal records showed that the company’s health and safety personnel had recommended relaxing the production quotas to reduce injuries. However, senior executives reportedly rejected these recommendations, citing concerns over the company’s performance.
The Senate report later affirmed these findings, corroborating investigations from a union-backed group that revealed injury rates at Amazon warehouses are nearly double the industry average.
In light of the findings, Senator Bernie Sanders commented, “The shockingly dangerous working conditions at Amazon’s warehouses revealed in this 160-page report are beyond unacceptable.”
Amazon Responds to the Investigation
In response, Kelly Nantel, an Amazon spokeswoman, dismissed the report, stating, “Sen. Sanders’ report is wrong on the facts and weaves together out-of-date documents and unverifiable anecdotes to create a preconceived narrative.” She argued that the internal studies cited by the Senate investigation were later found to be invalid and criticized the report for relying on outdated documents and unverifiable anecdotes.
What Is the Target Price for AMZN?
Analysts remain bullish about AMZN stock, with a Strong Buy consensus rating of 45 Buys and one Hold. Over the past year, AMZN has increased by more than 50%, and the average AMZN price target of $243.85 implies an upside potential of 4.7% from current levels.
