Rise Of The Machines At Boohoo In Sheffield

[SheffieldForum 981]

The Tribune today has an in depth look at controversial automation at Boohoo/Pretty Little Thing’s distribution warehouse on Shepcote Lane, which has led to swathes of redundancies. Here’s a snippet:
 

“In 2021, the warehouse employed an army of ‘pickers’ — staff employed to collect items from around the 615,000 square foot or 14-acre warehouse and hand them to other employees to pack ready for distribution. However, following a £150 million investment in the facility, many of these picker jobs have been automated. “When the warehouse opened in 2018, everything was manual,” says one staff member. Now, paid staff have been replaced by a conveyor belt system. “It brings stuff to you rather than you having to go and get it,” they add.

“On the one hand, this makes it “a lot easier” to pick, the staff member says, but it also means they need far fewer workers. The warehouse shed 300 jobs last September, with another 90 earlier this year. The man I’m speaking to works in the hygiene team, cleaning the vast warehouse ready for a new shift to start. This, he adds, is “better than picking” — but not by much. “[Boohoo]’s got a bad name, and it deserves it,” he says. “It’s just ****. You are just like a number; anonymous. They don’t care about you or do anything for you.””

 

Here’s a link to the whole thing (it’s worth subscribing, The Tribune is a fantastic outlet for quality local journalism!).

 

And here’s a video of the new automation in action 😮:

 

 

[ECCOnoob 1,054]

I'm afraid it's nothing earth shattering. It's what is being driven by the ever increasing shift in us consumers demanding instant this, instant that,  at the click of a button and all at rock bottom prices.

 

Those fleshy parts previously fetching and carrying cost continual wages. They take sick days. They take holidays. They need constant supervision and management and discipline and training which costs even more money. They are subject to National insurance payments and pension payments and demand annual increases..

 

Doesn't take much for the number crunchers to work out the investment/maintenance cost of the machinery versus the benefits versus cost of X number of human staff and do the maths. 

 

If people want to cling on to human touch, they have to be prepared to pay more on the price tag.

Edited April 18 by ECCOnoob

[SheffieldForum 981]

25 minutes ago, ECCOnoob said:

I'm afraid it's nothing earth shattering. It's what is being driven by the ever increasing shift in us consumers demanding instant this, instant that,  at the click of a button and all at rock bottom prices.

 

Those fleshy parts previously fetching and carrying cost continual wages. They take sick days. They take holidays. They need constant supervision and management and discipline and training which costs even more money. They are subject to National insurance payments and pension payments and demand annual increases..

 

Doesn't take much for the number crunchers to work out the investment/maintenance cost of the machinery versus the benefits versus cost of X number of human staff and do the maths. 

 

If people want to cling on to human touch, they have to be prepared to pay more on the price tag.

Theres actually a good argument by a PhD Researcher in the full article linked that automation is currently proving uneconomical for many businesses:

 

“Cowman-Sharpe says the investment needed to retrofit an entire factory likely means the effect of automation hasn’t been that big so far. “£150 million is a lot of money,” he says. “Given the cost of energy at the moment, it could be cheaper for a lot of places to actually continue to pay a workforce.””

 

Over time, and as global prices adjust it may change of course.

[Draggletail 64]

3 hours ago, SheffieldForum said:

Over time, and as global prices adjust it may change of course.

I really hope so...

[ECCOnoob 1,054]

3 hours ago, SheffieldForum said:

Theres actually a good argument by a PhD Researcher in the full article linked that automation is currently proving uneconomical for many businesses:

 

“Cowman-Sharpe says the investment needed to retrofit an entire factory likely means the effect of automation hasn’t been that big so far. “£150 million is a lot of money,” he says. “Given the cost of energy at the moment, it could be cheaper for a lot of places to actually continue to pay a workforce.””

 

Over time, and as global prices adjust it may change of course.

Interesting.   Maybe the tide will eventually turn then.  

 

However, these corporations dont usually make such investments likely.    The £150m is a lot of money but lets say those 390 axed or potentially axed workers were all earning current national minimum wage level (obviously some roles likely to be above this anyway)  that would give a  full time equivalent bill of over £8.7m in just base wages alone.  That's before the additional costs of training, supervision, holidays, sick pay, other benefits.      

 

Given the NMW usually has increments every year too, it soon adds up.  A decade ago it was at £6.50 for a adult.   Its now £11.44.   A 75% increase.  

I guess any cost/benefit will depend on the outlay for ongoing maintenance, repair and life expectancy of the machinery but one wonders if costs of the physical objects over human wages would increase 75% over 10 years...