bernie sanders

amazon-facing-strike-threats-as-senate-report-details-hidden-widespread-injuries

Amazon facing strike threats as Senate report details hidden widespread injuries


“Obsessed with speed and productivity”

Amazon ignores strike threats, denies claims of “uniquely dangerous warehouses.”

Just as Amazon warehouse workers are threatening to launch the “first large-scale” unfair labor practices strike at Amazon in US history, Sen. Bernie Sanders (I-Vt.) released a report accusing Amazon of operating “uniquely dangerous warehouses” that allegedly put profits over worker safety.

As chair of the Senate Committee on Health, Education, Labor, and Pensions, Sanders started investigating Amazon in June 2023. His goal was “to uncover why Amazon’s injury rates far exceed those of its competitors and to understand what happens to Amazon workers when they are injured on the job.”

According to Sanders, Amazon “sometimes ignored” the committee’s requests and ultimately only supplied 285 documents requested. The e-commerce giant was mostly only willing to hand over “training materials given to on-site first aid staff,” Sanders noted, rather than “information on how it tracks workers, the quotas it imposes on workers, and the disciplinary actions it takes when workers cannot meet those quotas, internal studies on the connection between speed and injury rates, and the company’s treatment of injured workers.”

To fill in the gaps, Sanders’ team “conducted an exhaustive inquiry,” interviewing nearly 500 workers who provided “more than 1,400 documents, photographs, and videos to support their stories.” And while Amazon’s responses were “extremely limited,” Sanders said that the Committee was also able to uncover internal studies that repeatedly show that “Amazon chose not to act” to address safety risks, allegedly “accepting injuries to its workers as the cost of doing business.”

Perhaps most critically, key findings accuse Amazon of manipulating workplace injury data by “cherry-picking” data instead of confronting the alleged fact that “an analysis of the company’s data shows that Amazon warehouses recorded over 30 percent more injuries than the warehousing industry average in 2023.” The report also alleged that Amazon lied to federal regulators about injury data, discouraged workers from receiving outside care to hide injuries, and terminated injured workers while on approved medical leave.

“This evidence reveals a deeply troubling picture of how one of the largest corporations in the world treats its workforce,” Sanders reported, documenting “a corporate culture obsessed with speed and productivity.”

Amazon disputed Sanders’ report

In a statement, Amazon spokesperson Kelly Nantel disputed the report as “wrong on the facts.”

Sanders’ report allegedly “weaves together out-of-date documents and unverifiable anecdotes to create a pre-conceived narrative that he and his allies have been pushing for the past 18 months,” Nantel said. “The facts are, our expectations for our employees are safe and reasonable—and that was validated both by a judge in Washington after a thorough hearing and by the State’s Board of Industrial Insurance Appeals, which vacated ergonomic citations alleging a hazardous pace of work.”

Nantel said that Sanders ignored that Amazon has made “meaningful progress on safety—improving our recordable incident rates by 28 percent in the US since 2019, and our lost time incident rates (the most serious injuries) by 75 percent.”

But Sanders’ report anticipated this response, alleging that “many” workers “live with severe injuries and permanent disabilities because of the company’s insistence on enforcing grueling productivity quotas and its refusal to adequately care for injured workers.” Sanders said if Amazon had compelling evidence that refuted workers’ claims, the company failed to produce it.

“Although the Committee expects Amazon will dispute the veracity of the evidence those workers provided, Amazon has had eighteen months to offer its own evidence and has refused to do so,” Sanders reported.

Amazon Labor Union preparing to strike

In August, the National Labor Relations Board (NLRB) determined that Amazon is a joint employer of contracted drivers hired to ensure the e-commerce giant delivers its packages when promised. The Amazon Labor Union (ALU)—which nearly unanimously voted to affiliate with the International Brotherhood of Teamsters this summer—considered this a huge win after Amazon had long argued that it had no duty to bargain with driver unions and no responsibility for alleged union busting.

Things seemed to escalate quickly after that, with the NLRB in October alleging that Amazon illegally refused to bargain with the union, which reportedly represents thousands of drivers who are frustrated by what they claim are low wages and dangerous working conditions. As the NLRB continues to seemingly side with workers, Amazon allegedly is “teaming up with Elon Musk in a lawsuit to get the NLRB declared unconstitutional,” workers said in an email campaign reviewed by Ars.

Now, as the holidays approach and on-time deliveries remain Amazon’s top priority, the ALU gave the tech company until Sunday to come to the bargaining table or else “hundreds of workers are prepared to go on strike” at various warehouses. In another email reviewed by Ars, the ALU pushed for donations to support workers ahead of the planned strike.

“It’s one of the busiest times of year for Amazon,” the email said. “The threat of hundreds of workers at one of its busiest warehouses walking out has real power.”

In a statement provided to Ars, Amazon spokesperson Eileen Hards said that Sanders refused to visit Amazon facilities to see working conditions “firsthand” and instead pushed a “pre-conceived narrative” that Amazon claims is unsupported. Her statement also seemed to suggest that Amazon isn’t taking the threat of workers striking seriously, alleging that the ALU also pushes a “false narrative” by supposedly exaggerating the number of workers who have unionized. (Amazon’s full statement disputing Sanders’ claims in-depth is here.)

“For more than a year now, the Teamsters have continued to intentionally mislead the public—claiming that they represent ‘thousands of Amazon employees and drivers,’” Hards said. “They don’t, and this is another attempt to push a false narrative. The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union.”

Workers seem unlikely to be quieted by such statements, telling Sanders that Amazon allegedly regularly ignores their safety concerns, orders workers to stay in roles causing them pain, denies workers’ medical care, and refuses to accommodate disabilities. Among the support needed for workers preparing to walk out are medical care and legal support, including “worker retaliation defense funds,” the union’s campaign said.

While Amazon seemingly downplays the number of workers reportedly past their breaking point, Sanders alleged that the problem is much more widespread than Amazon admits. According to his report, Amazon workers over “the past seven years” were “nearly twice as likely to be injured as workers in warehouses operated by the rest of the warehousing industry,” and “more than two-thirds of Amazon’s warehouses have injury rates that exceed the industry average.”

Amazon allegedly refuses to accept these estimates, even going so far as repeatedly claiming that “worker injuries were actually the result of workers’ ‘frailty’ and ‘intrinsic likelihood of injury,'” Sanders reported, rather than due to Amazon’s fast-paced quotas.

Laws that could end Amazon’s alleged abuse

On top of changes that Amazon could voluntarily make internally to allegedly improve worker safety, Sanders recommended a range of regulatory actions to force Amazon to end the allegedly abusive practices.

Among solutions is a policy that would require Amazon to disclose worker quotas that allegedly “force workers to move quickly and in ways that cause injuries.” Such transparency is required in some states but could become federal law, if the Warehouse Worker Protection Act passes.

And likely even more impactful, Sanders pushed to pass the Protecting America’s Workers Act (PAWA), which would increase civil monetary penalties for violations of worker safety laws.

In his report, Sanders noted that Amazon is much too big to be held accountable by current maximum penalties for workplace safety violations, which are just over $16,000. Penalties for 50 violations for one two-year period were just $300,000, Sanders said, which was “approximately 1 percent of Amazon CEO Andy Jassy’s total compensation in 2023.”

Passing PAWA would spike the maximum penalty for willful and repeated violations to $700,000 and is necessary, Sanders advocated, to “hold Amazon accountable for its failure to protect its workers.”

Additional legal protections that Congress could pass to protect workers include laws protecting workers’ rights to organize, banning Amazon from disciplining workers based on automated systems allegedly “prone to errors,” and ending Amazon’s alleged spying, partly by limiting worker surveillance.

In his report, Sanders suggested that his findings align with workers’ concerns that have become “the basis of efforts to organize warehouses in New York, Kentucky, Florida, Alabama, Missouri, and beyond.” And as many workers seem ready to strike at Amazon’s busiest time of year, instead of feeling optimistic that Amazon will bargain with workers, they’re bracing for suspected retaliation and planning to hit Amazon where it hurts most—the e-commerce giant’s bottom line.

In an email Monday, the campaign suggested that “Amazon only speaks one language, and that’s money.”

“We’re ready to withhold our labor if they continue to ignore their legal obligation to come to the table,” the email said, noting that when it comes to worker well-being, “our message is clear: We can’t wait anymore.”

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

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eli-lilly-raises-price-of-zepbound-while-trumpeting-discount-on-starter-vials

Eli Lilly raises price of Zepbound while trumpeting discount on starter vials

Pharma misdirection —

Cost for insured patients without coverage for the drug rises from $550 to $650 a month.

An Eli Lilly & Co. Zepbound injection pen arranged in the Brooklyn borough of New York, US, on Thursday, March 28, 2024.

Enlarge / An Eli Lilly & Co. Zepbound injection pen arranged in the Brooklyn borough of New York, US, on Thursday, March 28, 2024.

Pharmaceutical giant Eli Lilly earned praise this week with an announcement that it is now selling starter dosages of its popular weight-loss drug tirzepatide (Zepbound) at a price significantly lower than before. But the cheers were short-lived as critics quickly noticed that Lilly also quietly raised the price on current versions of the drug—a move that was notably missing from the company’s press release this week.

In the past, Lilly sold Zepbound only in injectable pens with a list price of $1,060 for a month’s supply. Several dosages are available—2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg, or 15 mg—and patients progressively increase their dosage until they reach a maintenance dosage. The recommended maintenance dosages are 5 mg, 10 mg, or 15 mg. The higher the dose, the more the weight loss. For instance, people using the 15 mg doses lost an average of 21 percent of their weight over 17 months in a clinical trial, while those on 5 mg doses only lost an average of 15 percent of their weight.

On Tuesday, Lilly announced that it will now sell Zepbound in vials, too. And a month’s supply of vials with the 2.5 mg doses will cost $399, while a month’s supply of 5 mg doses is priced at $549—a welcome drop from the $1,060 price tag. These prices are for a self-pay option, meaning that patients with a valid, on-label prescription can buy them directly from Lilly if they have no insurance or have insurance that does not cover the drug.

“This new option helps millions of adults with obesity access the medicine they need,” Lilly said in its announcement of the vials and their prices.

The company also included a quote from James Zervos, chief operating officer of the nonprofit Obesity Action Coalition. “Expanding coverage and affordability of treatments is vital to people living with obesity,” Zervos said. “We commend Lilly for their leadership in offering an innovative solution that brings us closer to making equitable care a reality.” Even President Biden chimed in on social media, saying he was “pleased” by the discount, though he urged drug companies to cut prices “across the board.”

“No rational reason, other than greed”

But, that wasn’t the end of the news. When Lilly released its press release, people noticed that the company had also increased the price of Zepbound pens for those who have insurance plans that don’t cover the drug. In the past, Lilly offered a “savings card” that allowed these patients to buy a month’s supply of any dosage of Zepbound pens for $550. Now the price is $650, a nearly 20 percent increase.

Lilly did not respond to Ars’ request for comment or questions about why the company increased the price for some patients.

Sen. Bernie Sanders (I-Vt.), a longtime critic of the pharmaceutical industry and their drug pricing, was quick to weigh in. He called the vial prices a “modest step forward” but noted that, even with the price reduction, millions of Americans still won’t be able to pay for the drug. At $549 a month, the price of the drug is a little over the average monthly payment for a used car, which was $523 in the first quarter of this year, according to Experian. As for the increase in pen pricing, Sanders called it “bad news.”

“In addition, Eli Lilly has still refused to lower the outrageous price of Mounjaro that Americans struggling with diabetes desperately need,” Sanders went on. “There is no rational reason, other than greed, why Mounjaro should cost $1,069 a month in the United States but just $485 in the United Kingdom and $94 in Japan.”

In May, a Senate committee report concluded that uptake of such weight-loss and diabetes drugs stands to “bankrupt our entire health care system,” given the high prices and large demand in the US. The report was produced by the Senate’s Health, Education, Labor, and Pensions (HELP) committee, which is chaired by Sanders.

Eli Lilly raises price of Zepbound while trumpeting discount on starter vials Read More »

drugmaker-to-testify-on-why-weight-loss-drugs-cost-15x-more-in-the-us

Drugmaker to testify on why weight-loss drugs cost 15x more in the US

On second thought —

Bernie Sanders cancels subpoena vote.

Lars Fruergaard Jorgensen, chief executive officer Novo Nordisk A/S, during an interview at the company's headquarters in Bagsvaerd, Denmark, on Monday, June 12, 2023.

Enlarge / Lars Fruergaard Jorgensen, chief executive officer Novo Nordisk A/S, during an interview at the company’s headquarters in Bagsvaerd, Denmark, on Monday, June 12, 2023.

After some persuasion from Sen. Bernie Sanders (I-Vt.), the CEO of Novo Nordisk will testify before lawmakers later this year on the “outrageously high cost” of the company’s diabetes and weight-loss drugs—Ozempic and Wegovy—in the US.

CEO Lars Jørgensen will appear before the Senate Committee on Health, Education, Labor, and Pensions (HELP), which is chaired by Sanders, in early September. The agreement came after a conversation with Sanders in which the CEO reportedly “reconsidered his position” and agreed to testify voluntarily. As such, Sanders has canceled a vote scheduled for June 18 on whether to subpoena Novo Nordisk to discuss its US prices, which are considerably higher than those of other countries.

The independent lawmaker has been working for months to pressure Novo Nordisk into lowering its prices and appearing before the committee. In April, Sanders sent Jørgensen a letter announcing an investigation into the prices and included a lengthy set of information requests. In May, the committee’s investigation released a report suggesting that Novo Nordisk’s current pricing threatens to “bankrupt our entire health care system.”

Sanders has repeatedly hammered not only the high prices of Novo Nordisk’s two blockbuster drugs but also the huge disparity between US prices and those in other countries.

Up to 15x more in the US

“Novo Nordisk currently charges Americans with type 2 diabetes $969 a month for Ozempic, while this same exact drug can be purchased for just $155 in Canada and just $59 in Germany,” Sanders wrote in April. “Novo Nordisk also charges Americans with obesity $1,349 a month for Wegovy, while this same exact product can be purchased for just $140 in Germany and $92 in the United Kingdom.”

Yale researchers, meanwhile, published a study in JAMA in March estimating that both drugs could be manufactured for less than $5.

In May, Novo Nordisk responded with a letter to Sanders, arguing that blame for high prices in the US lies with the country’s complex health system and with middle managers who take cuts, according to Bloomberg. Novo Nordisk said in the letter that it is prepared to address “systemic issues so that everyone who can benefit from its medicines is able to get them,” the outlet reported. The company also said it has spent over $10 billion on research and development to bring Wegovy and Ozempic to the market.

Still, that number is small in comparison to the projected revenue from the drugs. Bloomberg noted that analysts estimate that Novo Nordisk will make $27 billion from the two drugs this year alone. The May analysis by the HELP committee found that if just half of the adults in the US with obesity start taking a new weight-loss drug, such as Wegovy, the collective cost would be around $411 billion per year. Another report by the Congressional Budget Office found that the drugs’ costs are so high that they will not be offset by any financial gains from improved health outcomes.

“The Committee looks forward to Mr. Jørgensen explaining why Americans are paying up to 10 or 15 times more for these medications than people in other countries,” Sanders said last week.

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“outrageously”-priced-weight-loss-drugs-could-bankrupt-us-health-care

“Outrageously” priced weight-loss drugs could bankrupt US health care

Collision course —

Prices would need to be dramatically slashed to avoid increasing the national deficit.

Packaging for Wegovy, manufactured by Novo Nordisk, is seen in this illustration photo.

Enlarge / Packaging for Wegovy, manufactured by Novo Nordisk, is seen in this illustration photo.

With the debut of remarkably effective weight-loss drugs, America’s high obesity rate and its uniquely astronomical prescription drug pricing appear to be set on a catastrophic collision course—one that threatens to “bankrupt our entire health care system,” according to a new Senate report that modeled the economic impact of the drugs in different uptake scenarios.

If just half of the adults in the US with obesity start taking a new weight-loss drug, such as Wegovy, the collective cost would total an estimated $411 billion per year, the analysis found. That’s more than the $406 billion Americans spent in 2022 on all prescription drugs combined.

While the bulk of the spending on weight-loss drugs will occur in the commercial market—which could easily lead to spikes in health insurance premiums—taxpayer-funded Medicare and Medicaid programs will also see an extraordinary financial burden. In the scenario that half of adults with obesity go on the drug, the cost to those federal programs would total $166 billion per year, rivaling the programs’ total 2022 drug costs of $175 billion.

In all, by 2031, total US spending on prescription drugs is poised to reach over $1 trillion per year due to weight-loss drugs. Without them, the baseline projected spending on all prescription drugs would be just under $600 billion.

The analysis was put together by the Senate’s Health, Education, Labor, and Pensions (HELP) committee, chaired by staunch drug-pricing critic Bernie Sanders (I-Vt). And it’s quick to knock down a common argument about the high prices for smash-hit weight-loss drugs. That is, with their high effectiveness, the drugs will improve people’s health in wide-ranging ways, including controlling diabetes, improving cardiovascular health, and potentially more. And, with those improvements, people won’t need as much health care, generally, lowering health care costs across the board.

But, while the drugs do appear to have wide-ranging, life-altering benefits for overall health, the prices of the drugs are still set too high to be entirely offset by any savings in health care use. The HELP committee analysis cited a March Congressional Budget Office (CBO) report that found: “at their current prices, [anti-obesity medicines] would cost the federal government more than it would save from reducing other health care spending—which would lead to an overall increase in the deficit over the next 10 years.” Moreover, in April, the head of the CBO said that the drugmakers would have to slash prices of their weight-loss drugs by 90 percent to “get in the ballpark” of not increasing the national deficit.

The HELP committee report offered a relatively simple solution to the problem: Drugmakers should set their US prices to match the relatively low prices they’ve set in other countries. The report focused on Wegovy because it currently accounts for the most US prescriptions in the new class of weight-loss drugs (GLP-1 drugs). Wegovy is made by Denmark-based Novo Nordisk.

In the US, the estimated net price (after rebates) of Wegovy is $809 per month. In Denmark, the price is $186 per month. A study by researchers at Yale estimated that drugs like Wegovy can be profitably manufactured for less than $5 per month.

If Novo Nordisk set its US prices for Wegovy to match the Danish price, spending to treat half of US adults with obesity would drop from $411 billion to $94.5 billion, a roughly $316.5 billion savings.

Without a dramatic price cut, Americans will likely face either losing access to the drugs or shouldering higher overall health care costs, or some of both. The HELP committee report highlighted how this recently played out in North Carolina. In January, the board of trustees for the state employee health plan voted to end all coverage of Wegovy and other GLP-1 drugs due to the cost. Estimates found that if the plan continued to cover the drugs, the state would need to nearly double health insurance premiums to offset the costs.

“Outrageously” priced weight-loss drugs could bankrupt US health care Read More »

big-pharma-spends-billions-more-on-executives-and-stockholders-than-on-r&d

Big Pharma spends billions more on executives and stockholders than on R&D

Greed —

Senate report points to greed and “patent thickets” as key reasons for high prices.

Big Pharma spends billions more on executives and stockholders than on R&D

When big pharmaceutical companies are confronted over their exorbitant pricing of prescription drugs in the US, they often retreat to two well-worn arguments: One, that the high drug prices cover costs of researching and developing new drugs, a risky and expensive endeavor, and two, that middle managers—pharmacy benefit managers (PBMs), to be specific—are actually the ones price gouging Americans.

Both of these arguments faced substantial blows in a hearing Thursday held by the Senate Committee on Health, Education, Labor and Pensions, chaired by Sen. Bernie Sanders (I-Vt.). In fact, pharmaceutical companies are spending billions of dollars more on lavish executive compensation, dividends, and stock buyouts than they spend on research and development (R&D) for new drugs, Sanders pointed out. “In other words, these companies are spending more to enrich their own stockholders and CEOs than they are in finding new cures and new treatments,” he said.

And, while PBMs certainly contribute to America’s uniquely astronomical drug pricing, their profiteering accounts for a small fraction of the massive drug market, Sanders and an expert panelist noted. PBMs work as shadowy middle managers between drugmakers, insurers, and pharmacies, setting drug formularies and consumer prices, and negotiating rebates and discounts behind the scenes. Though PBMs practices contribute to overall costs, they pale compared to pharmaceutical profits.

Rather, the heart of the problem, according to a Senate report released earlier this week, is pharmaceutical greed, patent gaming that allows drug makers to stretch out monopolies, and powerful lobbying.

On Thursday, the Senate committee gathered the CEOs of three behemoth pharmaceutical companies to question them on the drug pricing practices: Robert Davis of Merck, Joaquin Duato of Johnson & Johnson, and Chris Boerner of Bristol Myers Squibb.

“We are aware of the many important lifesaving drugs that your companies have produced, and that’s extraordinarily important,” Sanders said before questioning the CEOs. “But, I think, as all of you know, those drugs mean nothing to anybody who cannot afford it.”

America’s uniquely high prices

Sanders called drug pricing in the US “outrageous,” noting that Americans spend by far the most for prescription drugs in the world. A report this month by the US Department of Health and Human Services found that in 2022, US prices across all brand-name and generic drugs were nearly three times as high as prices in 33 other wealthy countries. That means that for every dollar paid in other countries for prescription drugs, Americans paid $2.78. And that gap is widening over time.

Focusing on drugs from the three companies represented at the hearing (J&J, Merck, and Bristol Myers Squibb), the Senate report looked at how initial prices for new drugs entering the US market have skyrocketed over the past two decades. The analysis found that from 2004 to 2008, the median launch price of innovative prescription drugs sold by J&J, Merck, and Bristol Myers Squibb was over $14,000. But, over the past five years, the median launch price was over $238,000. Those numbers account for inflation.

The report focused on high-profit drugs from each of the drug makers. Merck’s Keytruda, a cancer drug, costs $191,000 a year in the US, but is just $91,000 in France and $44,000 in Japan. J&J’s HIV drug, Symtuza, is $56,000 in the US, but only $14,000 in Canada. And Bristol Myers Squibb’s Eliquis, used to prevent strokes, costs $7,100 in the US, but $760 in the UK and $900 in Canada.

Sanders asked Bristol Myers Squibb’s CEO Boerner if the company would “reduce the list price of Eliquis in the United States to the price that you charge in Canada, where you make a profit?” Boerner replied that “we can’t make that commitment primarily because the prices in these two countries have very different systems.”

The powerful pharmaceutical trade group PhRMA, published a blog post before the hearing saying that comparing US drug prices to prices in other countries “hurts patients.” The group argued that Americans have broader, faster access to drugs than people in other countries.

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