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

    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

    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

    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