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Amazon.com Inc. has no doubt made Christmas shopping a bit easier than in years past, especially for those who flock to the web for deals and avoid lines at the mall. But ask a German worker, and the Seattle web giant might actually be this year's Grinch.

Hundreds of Amazon workers are on strike in Germany this week, not coincidentally the peak Christmas shipping time for the e-commerce titan. The strikes, which workers voted Wednesday to extend, are just the latest in a string of disputes over pay and working conditions in Amazon warehouses, suggesting that Amazon's business model – and the jobs it creates – are not so different from the retail dinosaurs they're replacing, after all.

The labour dispute stems from a disagreement over how these workers should be classified. Amazon says its warehouse staff is part of the logistics industry, and should be subject to warehouse wages. Unions disagree, arguing that the workers are retail employees, and ought to earn the higher wages employees receive at department stores in Germany.

German unions say Amazon's wages represent a clash of cultures. "We are not going to let a big American company come here and play Wild West," said Frank Bsirske, head of Verdi union, during a strike in June at Amazon's Leipzig plant. Germany is Amazon's second largest market, representing one third of total sales in 2012.

Amazon has achieved a considerable reputation for innovation, in no small part due to CEO Jeff Bezos's wacky ideas. The company has undeniably revolutionized shopping, offering seductive convenience, unprecedented choice and low prices, and placed Mr. Bezos among the old-school tech elites alongside figureheads such as the late Steve Jobs and Bill Gates. Meanwhile, Wal-Mart Stores Inc., Target Corp., and other, more traditional outlets are struggling to keep pace with the online superstore.

But behind the shiny veil of innovation lies a darker, more familiar story: Warehouses filled with over-worked, under-paid temporary employees; economies of scale rivals simply can't compete with; and scandals over paying too little tax while they eliminate mom-and-pop competitors. Amazon is churning out goods with a steely efficiency not seen since, well, the rise of Wal-Mart.

Wal-Mart, arguably Amazon's biggest competitor, is no stranger to bad publicity. A cloud of negative press has surrounded Wal-Mart in recent years over pay discrimination, poor working conditions, and bribery allegations. Wal-Mart's brand perception among college-educated adults dropped 50 per cent between 2011 and 2012, according to the Wall Street Journal. The company even recently launched a multi-million-dollar advertising campaign to rescue its reputation.

With Amazon's share price up 57 per cent this year, and sales up 24 per cent over the year, labour action doesn't appear to be hitting the company's sales at the moment. But profits continue to lag. Amazon's price-equity ratio is a whopping 1,372. Compare this with 15 times for Wal-Mart, or 25 for eBay Inc.

Brand equity is essential to Amazon's success. Its presence as a sleek tech company continues to churn out buy signals for the stock, despite being arguably over-valued. Amazon is the future of shopping, and thanks to its international reach, also the future of retail work.

But the brutal reality remains that it's still a retail company and faces significant logistics costs. As operating expenses to store and deliver products rise, Jeff Bezos will continue to fight to keep costs down, and no amount of drone-talk or futuristic ideas can change that.

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Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 4:00pm EDT.

SymbolName% changeLast
AMZN-Q
Amazon.com Inc
+0.31%180.38
EBAY-Q
Ebay Inc
+1.66%52.78
MT-N
Arcelormittal ADR
-0.83%27.58
T-N
AT&T Inc
+0.28%17.6
T-T
Telus Corp
+0.37%21.67
TBB-N
AT&T Inc 5.350% Global Notes Due 2066
-2.65%23.5
TGT-N
Target Corp
+1.45%177.21
TU-N
Telus Corp
+0.63%16.01
WMT-N
Walmart Inc
-0.91%60.17

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