Amazon has announced a new contract option for parents and grandparents employed in its warehouses, allowing them to work exclusively during term-time.

Under this arrangement, individuals with childcare responsibilities will have the opportunity to take six weeks of holiday during the summer, as well as two weeks off at Easter and Christmas.

While the introduction of flexible working is seen as a positive step, the GMB union, currently battling for recognition from Amazon, argues that workers primarily desire improved wages.

According to the GMB, workers claim that their current pay is insufficient to sustain a decent standard of living.

In response, Amazon’s regional operations director, Neil Travis, expressed his hope that the introduction of flexible contracts would encourage more individuals to join the workforce. He also emphasized that the new contracts would not compromise full-time benefits for employees.

How are parents currently managing?

Claire McCartney, an expert at the Chartered Institute of Personnel and Development, highlighted that only 4 percent of workers currently have access to term-time working arrangements.

McCartney believes that this new contract option could positively impact attraction and retention, especially as organisations struggle with skills shortages and the challenges of childcare costs and availability. The timing of Amazon’s offering of the new contract coincides with their resistance against the GMB’s bid to become the first recognized trade union in Europe by the company. With over 70,000 employees in the UK, Amazon asserts that it prefers direct communication with its workforce rather than going through a union.

Strikes have been occurring

Recently, workers at the Amazon warehouse in Coventry have engaged in a 16-day strike, demanding an increase in their hourly wage to £15. Amanda Gearing, the GMB’s senior organizer, acknowledged the positive aspect of flexible contracts but emphasised that improved pay remains the workforce’s priority.

Meanwhile, Amazon argues that its pay rates are competitive and mentions a recent 10 percent wage increase. The GMB claims that a majority of workers at the Coventry warehouse seek union representation and has formally applied for statutory recognition to the Central Arbitration Committee (CAC). According to the union, around 800 Coventry employees have become members, representing a majority of the workforce.

When asked about the possibility of recognizing the GMB if they could prove majority support among Coventry workers, Neil Travis declined to comment, stating that the company is engaged in the application process with the CAC. Amazon intends to continue direct engagement with its employees and emphasizes its attractive pay rates and comprehensive benefits package. The decision-making process at the CAC is expected to take several weeks. Amazon may challenge the GMB’s calculation of the number of workers at the warehouse in its submission to the CAC, potentially influencing the committee’s decision on union recognition.

Martin Williams, head of employment and partner at Mayo Wynne Baxter, says:

“The problem with introducing term-time working for parents and grandparents, is that at present Amazon is a target for criticism about alleged poor working practices and its wider operating model.

“Any attempt to appear flexible will be met with scepticism from those who wish to pour scorn on the behemoth that Amazon is.

“An employer may want to make a certain offer to fill a gap in its own recruitment drive and it may also want to seem altruistic by being flexible in the terms it presents.

“In principle, term-time working contracts can be a good idea when trying to engage with workers more flexibly, however, some flexible arrangements can also be seen as less secure.

“Security and fair pay is what most workers want at a minimum. Getting it is another thing.”

Amelia Brand

Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.