It was a soothing day for Amazon.com, Inc. (NASDAQ:AMZN) as the online retailer registered a win against its workers demanding extra pay for going through the security checkpoint process. The decision will help the online retailer to save up to $100 million in additional payments and it is a relief in a time when the company is facing multiple legal issues.
The workers of Amazon.com filed a lawsuit against the company in October 2014 claiming additional pay for the time wasted in security checks, which takes roughly 30 minutes. However, the U.S. Supreme Court dismissed the claim citing that the workers have no federal right to demand extra payment for post-shift security checks.
This ruling is not just a relief for Amazon.com, Inc. (NASDAQ:AMZN) but for the entire major online as well as offline store owners including Apple Inc (NASDAQ:AAPL), Ross Stores Inc (NASDAQ:ROST), and CVS Health Corp (NYSE:CVS).
If the online retailer had lost the case, it would have to pay extra wages amounting to $100 million to its 400,000 employees. At the same time, spokeswoman for Amazon.com, Inc. (NASDAQ:AMZN), said, “Data shows that employees typically walk through security with little or no wait, and Amazon has a global process that ensures the time employees spend waiting in security is less than 90 seconds.”
In addition to the other legal troubles, the workers at a German site owned by the Amazon declared a strike for increasing wages up to the retail industry standards. The strike is announced at a strategic moment when the company is receiving higher volume of orders because of the holiday season.
In its defense, Amazon.com, Inc. (NASDAQ:AMZN) is claiming that these are logistics sites and the retailer is paying its employees accordingly. Verdi, service sector union, is heading the strike and has claimed to add more pressure if demands are not met.
This article has been written by Prakash Pandey.