The most recent round of Amazon criticisms reveals how the company has taken Walmart's spot as a symbol for everything wrong with American big business (AMZN, WMT)
- In a clear reference to Amazon founder and CEO
- The bad press mirrors what
If there was any doubt that Amazon is increasingly being painted as the biggest villain in American capitalism, it died last week with the introduction of the Stop BEZOS Act.
On September 5, Sen. Bernie Sanders introduced the Stop Bad Employers by Zeroing Out Subsidies (BEZOS) Act. The bill, a clear reference to Amazon founder and CEO Jeff Bezos, would create a welfare tax for large employers with workers who receive federal benefits such as food stamps.
Sanders' office singled out Amazon in the press release, citing a report from The New Food Economy that found one in three Amazon workers in Arizona depend on food stamps.
Sanders' office's press release also mentioned Walmart, citing a 2014 report from the grassroots group Americans for Tax Fairness that the retailer costs American tax payers $6.2 billion a year due to workers' reliance on food stamps, Medicaid, and public housing. At the time when the report came out, Walmart called it "inaccurate and misleading," noting that the percentage of Walmart workers who use government benefits is similar to that of other retailers.
To be sure, Sanders' proposed bill would affect Walmart, too. But Amazon was still the focus.
A growing problem
Amazon's reputation woes were put into concrete form when the Reputation Institute issued its annual RepTrak ranking of companies on Thursday. Amazon notably lost the top spot to Barnes & Noble in the retail category.
Among all companies globally, Amazon fell from 18th to 23rd place.
The company's reputation fell in all categories of reputation, but it was hit especially hard with relation to — how it gives back to its community — and how it treats its workers.
The haves and have-nots of Amazon
"Today, millions of small and medium-sized businesses from around the world are selling on Amazon and more than a million of them are based in the US," an Amazon representative told Business Insider in July.
The search for Amazon's new second headquarters, known as HQ2, has helped put a microscope on Amazon's local impact. Skyrocketing housing prices, unrelenting traffic, and overcrowding have inspired residents to dub Seattle "Armageddon." Local businesses have been forced out as prices increase and Amazon's headquarters expands into "Amazonia."
In response to criticism, Amazon has touted its investments in Seattle and how the HQ2 deal could pay off for the city that becomes home to its new headquarters.
In July, Bezos became the richest man in modern history. As of Monday, he has an estimated net worth of $159.2 billion, according to Forbes.
Warehouse workers have protested long hours and poor working conditions. Employees told Business Insider earlier this year that they were constantly under surveillance while working in Amazon warehouses, with intense targets that don't even allow for bathroom breaks.
"The metrics are brutally aggressive, and most of my colleagues are in a state of constant anxiety that we could be fired at any moment for not meeting metrics," one current US employee said. "Jeff Bezos has become the richest man in the world off the backs of people so desperate for work that we tolerate the abuse."
Amazon defends its working conditions strenuously.
"We encourage anyone to compare our pay and benefits to other retailers," an Amazon representative said in August, noting that the average hourly wage for full-time workers in fulfillment centers was over $15 an hour before overtime. "Amazon is proud to have created over 130,000 new jobs last year alone. These are good jobs with highly competitive pay and full benefits."
Walmarts past problems look a lot like Amazons current ones
Amazon isn't the only company to face criticism for its CEO's wealth, its ruthlessness in the face of competition, or its treatment of workers. But because it is such a visible company — with the richest CEO — it becomes a target for criticism that could be applied to many retailers.