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      In space, no one will hear Bezos and Musk’s workers call for basic rights | Robert Reich

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      Elon Musk’s SpaceX just won a $2.9bn Nasa contract to land astronauts on the moon, beating out Jeff Bezos.The money isn’t a big deal for either of them. Musk is worth $179.7bn. Bezos, $197.8bn. Together, that’s almost as much as the bottom 40% of Americans combined.And the moon is only their stepping stone.Musk says SpaceX will land humans on Mars by 2026 and wants to establish a colony by 2050. Its purpose, he says, will be to ensure the survival of our species.“If we make life multi-planetary, there may come a day when some plants and animals die out on Earth but are still alive on Mars,” he tweeted.Bezos is also aiming to build extraterrestrial colonies, but in space rather than on Mars. He envisions “very large structures, miles on end” that will “hold a million people or more each”.Back on our home planet, Musk is building electric cars, which will help the environment. And Bezos is allowing us to shop from home, which might save a bit on gas and thereby also help the environment.But Musk and Bezos are treating their workers like, well, dirt.Most workers won’t be able to escape into outer space. A few billionaires are already lining upLast spring, after calling government stay-at-home orders “fascist” and tweeting “FREE AMERICA NOW”, Musk reopened his Tesla factory in Fremont, California before health officials said it was safe to do so. Almost immediately, 10 workers came down with the virus. As cases mounted, Musk fired workers who took unpaid leave. Seven months later, at least 450 Tesla workers had been infected.Musk’s production assistants, as they’re called, earn $19 an hour – hardly enough to afford rent and other costs of living in northern California. Musk is virulently anti-union. A few weeks ago, the National Labor Relations Board found that Tesla illegally interrogated workers over suspected efforts to form a union, fired one and disciplined another for union-related activities, threatened workers if they unionized and barred employees from communicating with the media.Bezos isn’t treating his earthling employees much better. His warehouses impose strict production quotas and subject workers to seemingly arbitrary firings, total surveillance and 10-hour workdays with only two half-hour breaks – often not enough time to get to a bathroom and back. Bezos boasts that his workers get $15 an hour but that comes to about $31,000 a year for a full-time worker, less than half the US median family income. And no paid sick leave.Bezos has fired at least two employees who publicly complained about lack of protective equipment during the pandemic. To thwart the recent union drive in Bessemer, Alabama, Amazon required workers to attend anti-union meetings, warned they’d have to pay union dues (untrue – Alabama is a “right-to-work” state), and threatened them with lost pay and benefits.Musk and Bezos are the richest people in America and their companies are among the country’s fastest growing. They thereby exert huge influence on how other chief executives understand their obligations to employees.The gap between the compensation of CEOs and average workers is already at a record high. They inhabit different worlds.If Musk and Bezos achieve their extraterrestrial aims, these worlds could be literally different. Most workers won’t be able to escape into outer space. A few billionaires are already lining up.The super-rich have always found means of escaping the perils of everyday life. During the plagues of the 17th century, European aristocrats decamped to their country estates. During the 2020 pandemic, wealthy Americans headed to the Hamptons, their ranches in Wyoming or their yachts.The rich have also found ways to protect themselves from the rest of humanity – in fortified castles, on hillsides safely above smoke and sewage, in grand mansions far from the madding crowds. Some of today’s super rich have created doomsday bunkers in case of nuclear war or social strife.But as earthly hazards grow – not just environmental menaces but also social instability related to growing inequality – escape will become more difficult. Bunkers won’t suffice. Not even space colonies can be counted on.I’m grateful to Musk for making electric cars and to Bezos for making it easy to order stuff online. But I wish they’d set better examples for protecting and lifting the people who do the work.It’s understandable that the super wealthy might wish to escape the gravitational pull of the rest of us. But there’s really no escape. If they’re serious about survival of the species, they need to act more responsibly toward working people here on terra firma. More

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      Amazon won the Alabama union fight. But don’t mourn – organize | Indigo Olivier

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      Nearly a week after Amazon workers in Bessemer, Alabama, cast their ballots to determine whether or not to form a union, a final tally shows workers lost their campaign by a more than two-to-one margin. The results are being contested by the Retail, Wholesale and Department Store Union (RWDSU), which claims Amazon coerced and intimidated workers with their belligerent anti-union campaign. Even if the results are thrown out and another election is held, the outcome is likely to remain unchanged.During the agonizing week-long vote count, all you could do was wait and hope. Little snippets of information trickled in, followed by more waiting. The loss, while not surprising, is a disappointment to not only the workers and supporters who threw so much into this campaign but to the labor movement as a whole.Postmortems abound about the warning signs of defeat, the tactical errors made by organizers, the urgent need for labor law reform, and the demoralizing effect this outcome might have on other workers. In any case, the final takeaway should always be: don’t mourn. Organize.While there is much to learn from the strategy deployed in Bessemer, the defeat is not so much an indictment of the specifics of this one union drive as it is of the balance of power between labor and capital as a whole.Amazon started off with the upper hand and used every tool it could to not only defeat Bessemer workers but to send a clear message to others who might try to organize at other fulfillment centers: you don’t stand a chance.For weeks, Amazon sent a barrage of anti-union messaging to its employees, posted “vote no” flyers in bathroom stalls, texted workers on a regular basis, waged a social media campaign linking back to the “Do It Without Dues” website, changed traffic lights outside the facility, held “captive audience” meetings with workers to dissuade them from voting “yes,” and spent nearly $10,000 a day on union-busting consulting firms.The company followed a familiar anti-union playbook; in fact, they went even further, pressuring USPS officials to install a private ballot box on company property all while denying the reality of their workers peeing in bottles and defecating in bags to meet merciless delivery quotas – a reality that was quickly confirmed by reporters.With all eyes on Amazon, the entire country has just seen the lengths corporations will go to prevent workers from organizing.While the legality of some of these tactics is being challenged by the RWDSU, the reality is that most of them are commonplace and, in the eyes of America’s lopsided and mostly toothless labor laws, fair game. Even if Amazon is found to have violated workers’ rights in Bessemer, it is unlikely that the company will face any serious consequences.More than anything, this defeat stressed the immediate importance of passing the Protecting the Right to Organize Act (Pro Act) which would ban captive audience meetings, severely limit corporate interference, invalidate right-to-work legislation and strengthen collective bargaining as a whole.The Pro Act, which would represent the most significant federal labor legislation in decades, passed the House in early May and is all but certain to be voted down in the evenly split Senate.President Biden has spoken strongly in favor of the legislation, but its passage is unlikely without eliminating the filibuster – an action for which Biden has withheld full commitment.The Pro Act would allow labor to move from the defensive to the offensive which is crucial when workers – especially at giant corporations like Amazon – already have the deck stacked against them.A battle has been lost but an advance was made in the war to shift the focus of power from politicians to workersBiden has so far proven to be both the most pro-labor president in modern history and not nearly where we need him to be to deliver the goods. He sent a message of support to workers organizing in Alabama and around the country but stopped short of calling Amazon out by name. He’s encouraged Congress to pass the Pro Act without forging a viable path to follow through. Simply put, he lacks the courage to do what is needed to be “the most pro-union president you’ve ever seen”.Unions and other pro-labor groups have taken it upon themselves to move things forward. The Democratic Socialists of America (DSA) has shifted the national organizing infrastructure used for Bernie Sanders’ presidential campaign to make hundreds of thousands of calls convincing people of the urgent necessity of the Pro Act.While the Bessemer vote is devastating, the public attention and enthusiasm that was shown to the organizers there is exactly what is needed to make any significant strides in the labor movement, especially if the Senate is going to stall for as long as it can with Green Eggs and Ham.Bessemer was the most high-profile union election in recent memory and it started a national conversation about organized labor and poor working conditions. This election saturated social media (when was the last time you saw a viral TikTok about the importance of union dues?) and has even prompted talk of organizing other Amazon facilities.A battle has been lost but an advance was made in the slow ideological war to shift the public focus of power from politicians to workers. Amazon may have been successful in temporarily exorcising any attempt to organize from within, but the specter still haunts them. More

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      Win the Amazon union fight and we can usher in a new Progressive Era | Robert Reich

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      The most dramatic change in American capitalism over the last half-century has been the emergence of corporate behemoths like Amazon and the shrinkage of labor unions. The resulting imbalance has spawned near-record inequalities of income and wealth, corruption of democracy by big money and the abandonment of the working class.All this is coming to a head in several ways.Over the next eight days, Amazon faces a union vote at its warehouse in Bessemer, Alabama. If successful, it would be Amazon’s first US-based union in its nearly 27-year history.Conditions in Amazon warehouses would please Kim Jong-un – strict production quotas, 10-hour workdays with only two half-hour breaks, unsafe procedures, arbitrary firings “and they track our every move”, Jennifer Bates, a worker at Bessemer, told the Senate budget committee on Wednesday.To thwart the union drive, Amazon has required Bessemer workers to attend anti-union meetings, warned workers they’d have to pay union dues (wrong – Alabama is a “right-to-work” state that bars mandatory dues), and intimidated and harassed organizers.Why is Amazon abusing its workers?The power shift can be reversed – but only with stronger labor laws, tougher trade deals and a commitment to antitrustThe company isn’t exactly hard-up. It’s the most profitable firm in America. Its executive chairman and largest shareholder, Jeff Bezos, is the richest man in the world, holding more wealth than the bottom 39% of Americans put together.Amazon is abusing workers because it can.Fifty years ago, General Motors was the largest employer in America. The typical GM worker earned $35 an hour in today’s dollars and had a major say over working conditions. Today’s largest employers are Amazon and Walmart, each paying about $15 an hour and treating workers like cattle.The typical GM worker wasn’t “worth” more than twice today’s Amazon or Walmart worker and didn’t have more valuable insights about how work should be organized. The difference is GM workers a half-century ago had a strong union, summoning the collective bargaining power of more than a third of the entire American workforce.By contrast, today’s Amazon and Walmart workers are on their own. And because only 6.4% of America’s private-sector workers are unionized, there’s little collective pressure on Amazon or Walmart to treat their workers any better.Fifty years ago, “big labor” had enough political clout to ensure labor laws were enforced and that the government pushed giant firms like GM to sustain the middle class.Today, organized labor’s political clout is minuscule by comparison. The biggest political players are giant corporations like Amazon. And what have they done with their muscle? Encouraged “right-to-work” laws, diluted federal labor protections and kept the National Labor Relations Board understaffed and overburdened.They’ve also impelled government to lower their taxes (Amazon paid zero federal taxes in 2018); extorted states to provide them tax breaks as condition for locating facilities there (Amazon is a champion at this game); bullied cities where they’re headquartered (Amazon forced Seattle to back down on a plan to tax big corporations to pay for homeless shelters); and wangled trade treaties allowing them to outsource so many jobs that blue-collar workers in America have little choice but to take low-paying, high-stress warehouse and delivery gigs.Oh, and they’ve neutered antitrust laws, which in an earlier era would have had companies like Amazon in their crosshairs.This decades-long power shift – the emergence of corporate leviathans and the demise of labor unions – has resulted in a massive upward redistribution of income and wealth. The richest 0.1% of Americans now has almost as much wealth as the bottom 90% together.Corporate profits account for a growing share of the total economy and wages a declining share, with multi-billionaire executives and investors like Bezos taking home the lion’s share.The power shift can be reversed – but only with stronger labor laws, tougher trade deals and a renewed commitment to antitrust.The Biden administration and congressional Democrats appear willing. The House has just passed the toughest labor reforms in more than a generation. Biden’s new trade representative, Katherine Tai, promises trade deals will protect American workers rather than exporters. And Biden is putting trustbusters in critical positions at the Federal Trade Commission and in the White House.I’d like to think America is at a tipping point similar to where it was some 120 years ago, when the ravages and excesses of the Gilded Age precipitated what became known as the Progressive Era. Then, reformers reversed the course of American capitalism for the next 70 years, making it work for the many rather than the few.Today’s progressive activists – in Washington, at Amazon’s Bessemer warehouse and elsewhere around the nation – may be on the verge of doing the same. More

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      What if the most important election of the year is happening right now in Alabama? | Indigo Olivier

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      This month, 5,800 Amazon warehouse employees in Bessemer, Alabama, will be voting on whether or not to unionize with the Retail, Wholesale and Department Store Union in what could turn out to be the most important election of the year.While the Bessemer fulfillment center itself is a drop in the bucket when compared to Amazon’s roughly 500 facilities around the country, this could be the ballot heard around the world. If successful, this election would mark the first unionized Amazon facility in the US.Over the past 26 years, Jeff Bezos has built himself a private empire. Amazon is now the second largest employer in the US, after Walmart, and the fifth largest in the world. The more than 800,000 Amazon employees across the country represent a population between the size of Maine and Montana. Globally, the company employs more than 1 million workers.Amazon is also the largest online retailer in the world, with a market cap (or value of the company’s shares) at $1.5tn – larger than the GDPs of most countries. The power this company yields is unrivaled.Yet Amazon’s success has been made possible by the labor of the underpaid and overworked employees who keep operations running; by weakened anti-trust laws; by a larger US economic shift from manufacturing to the service and logistics sectors; and, of course, by generous government subsidies, which have seen the company get away with paying no taxes in recent years.Unions alone will not bring Amazon to heel – but without them, all bets are off.The message this election will send to workers is: if we can do it in the anti-labor, “right-to-work” south against one of the most powerful companies in the world – one with no scruples with regards to its anti-union tactics – then workers can unionize anywhere.It would be a marked shift since Ronald Reagan’s mass firing of striking air traffic control workers, which caused a chilling effect on organized labor and ushered in a new pro-business, anti-worker era. Labor organizers are hoping that a victory in Bessemer might turn this tide.The labor movement recognizes the significance of this election. Members of the AFL-CIO and nurses from a recently unionized hospital in North Carolina have been phone banking to speak with Bessemer workers directly about the importance of voting yes on a union. Supporters have also made it clear that the fight at the Bessemer facility, where about 85% of workers are Black, is also a fight for racial justice.Biden’s recent statement in support of workers organizing in Alabama suggests that under this administration significant gains for labor can be won, but only if workers are willing to fight for them.One of the biggest lies sold to the American public has been to convince the vast majority of people that “politics” means showing up to the polls every few years to elect representative officials who will take it from there. Like many aspects of our lives, politics has become something to consume passively. It’s cable news networks, the punditry class, bumper stickers, lawn signs, campaign donations. It’s horse-race journalism and partisan tabloids.A union victory for one workplace is a victory for all workersIt has narrowed the spectrum of the “political” to red and blue, kids in cages or “migrant overflow facilities”, dog whistles over bull horns, an open disdain for working people or a veneer of compassion. Far fewer see the actions they take day-to-day, in the workplaces where we spend the majority of our waking lives, as something worthy of being political.The Bessemer election has the potential to topple this frame in favor of a new horizon. The difference between electoral politics and labor organizing is the difference between voting in a president who says he will phase in the minimum wage to $15 an hour over the next four years – yet surrenders before the battle begins – and taking direct action to ensure that higher wages are guaranteed in your contract immediately.Amazon prides itself on paying its workers $15 an hour – more than double the federal minimum wage – plus benefits. But rather than being a product of the benevolence of an enlightened CEO, we should all understand this to be a Machiavellian tactic used to preempt the serfs from storming the castle.More importantly, workers organizing towards a union must recognize that in the long run, without labor protections, every employee lives under the dictates of an unforgiving and despotic market. These “tides” will only turn when workers see themselves as a unified force and recognize that a union victory for one workplace is a victory for all workers. It favors a rising tide that will lift all boats to the trickle-down economics that have left us in perpetual drought.The Bessemer election is not one in which fulfillment center employees will cast their ballots and abdicate all further responsibilities. Rather, this vote would open the floodgates. More

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      All I want for 2021 is to see Mark Zuckerberg up in court | John Naughton

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      It’s always risky making predictions about the tech industry, but this year looks like being different, at least in the sense that there are two safe bets. One is that the attempts to regulate the tech giants that began last year will intensify; the second that we will be increasingly deluged by sanctimonious cant from Facebook & co as they seek to avoid democratic curbing of their unaccountable power.On the regulation front, last year in the US, Alphabet, Google’s corporate owner, found itself facing major antitrust suits from 38 states as well as from the Department of Justice. On this side of the pond, there are preparations for a Digital Markets Unit with statutory powers that will be able to neatly sidestep the tricky definitional questions of what constitutes a monopoly in a digital age. Instead, the unit will decide on a case-by-case basis whether a particular tech company has “strategic market status” if it possesses “substantial, entrenched market power in at least one digital activity” or if it acts as an online “gateway” for other businesses. And if a company is judged to have this status, then penalties and regulations will be imposed on it.Over in Brussels, the European Union has come up with a new two-pronged legal framework for curbing digital power – the Digital Markets Act and the Digital Services Act. The Digital Markets Act is aimed at curbing anti-competitive practices in the tech industry (like buying up potential competitors before they can scale up) and will include fines of 10% of global revenues for infringers. The Digital Services Act, for its part, will oblige social media platforms to take more responsibility for illegal content on their platforms – scams, terrorist content, images of abuse, etc – for which they could face fines of up to 6% of global revenue if they fail to police content adequately. So the US and UK approach focuses on corporate behaviour; the EU approach focuses on defining what is allowed legally.All of this action has been a long time coming and while it’s difficult to say exactly how it will play out, the bottom line is that the tech industry is – finally – going to become a regulated one. Its law-free bonanza is going to come to an end.Joe Biden’s choices for top staff in his administration include a depressing proportion of former tech company stalwartsThe big question, though, is: when? Antitrust actions proceed at a glacial pace because of the complexity of the issues and the bottomless legal budgets of the companies involved. The judge in one of the big American antitrust cases against Google has said that he expects the case to get to court only in late 2023 and then it could run for several years (as the Microsoft case did in the 1990s).The problem with that, as the veteran anti-monopoly campaigner Matt Stoller has pointed out, is that the longer monopolistic behaviour goes on, the more damage (eg, to advertisers whose revenue is being stolen and other businesses whose property is being appropriated) is being done. Google had $170bn in revenue last year and is growing on average at 10-20% a year. On a conservative estimate of 10% growth, the company will add another $100bn to its revenue by 2025, when the case will still be in the court. Facebook, says Stoller, “is at $80bn of revenue this year, but it is growing faster, so the net increase of revenue is a roughly similar amount. In other words, if the claims of the government are credible, then the lengthy case, while perhaps necessary, is also enabling these monopolists to steal an additional $100bn apiece.”What could speed up bringing these monopolists to account? A key factor is the vigour with which the US Department of Justice prosecutes its case(s). In the run-up to the 2020 election, the Democrats in Congress displayed an encouraging enthusiasm for tackling tech monopolies, but Joe Biden’s choices for top staff in his administration include a depressing proportion of former tech company stalwarts. And his vice-president-elect, Kamala Harris, consistently turned a blind eye to the anti-competitive acquisitions of the Silicon Valley giants throughout her time as California’s attorney general. So if people are hoping for antitrust zeal from the new US government, they may be in for disappointment.Interestingly, Stoller suggests that another approach (inspired by the way trust-busters in the US acted in the 1930s) could have useful leverage on corporate behaviour from now on. Monopolisation isn’t just illegal, he points out, “it is in fact a crime, an appropriation of the rights and property of others by a dominant actor. The lengthy trial is essentially akin to saying that bank robbers getting to keep robbing banks until they are convicted and can probably keep the additional loot.”Since a basic principle of the rule of law is that crime shouldn’t pay, an addition of the possibility of criminal charges to the antitrust actions might, like the prospect of being hanged in the morning (pace Dr Johnson), concentrate minds in Facebook, Google, Amazon and Apple. As an eternal optimist, I cannot think of a nicer prospect for 2021 than the sight of Mark Zuckerberg and Sundar Pichai in the dock – with Nick Clegg in attendance, taking notes. Happy new year!What I’ve been readingWho knew?What We Want Doesn’t Always Make Us Happy is a great Bloomberg column by Noah Smith.Far outIntriguing piece on how investors are using real-time satellite images to predict retailers’ sales (Stock Picks From Space), by Frank Partnoy on the Atlantic website.An American dream Lovely meditation on Nora Ephron’s New York, by Carrie Courogen on the Bright Wall/Dark Room website. More

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      US lawmakers demand Jeff Bezos testify over Amazon’s 'possibly criminally false' statements

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      House lawmakers said they could subpoena CEO to testify in antitrust investigation if he doesn’t appear voluntarily House lawmakers are asking Amazon CEO Jeff Bezos to testify to address possible misleading statements by the company on its competition practices. Photograph: Charles Krupa/AP A bipartisan group of House lawmakers investigating Amazon for possible antitrust violations have […] More