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Newsom Signs Bill That Could Push Amazon to Change Labor Practices

  • September 23, 2021

But business groups strongly opposed the bill, arguing that it would lead to an explosion of litigation and hamper the distribution of goods.

“We are disappointed Governor Newsom signed A.B. 701, which will exacerbate our current supply chain issues, increase the cost of living for all Californians and eliminate good-paying jobs,” Rachel Michelin, the president of the California Retailers Association, said in a statement.

Ms. Michelin previously expressed concern that the bill would effectively punish an entire industry for the purported excesses of one company.

Two separate studies, including one by a group backed by labor unions, have shown that the rate at which Amazon workers suffer serious injuries was nearly double that of the rest of the warehousing industry last year.

Industry analysts have said reining in productivity quotas at Amazon is more likely to affect its costs than its famously rapid delivery times, pointing out that the company could simply hire more workers to make up for somewhat lower productivity per employee.

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