Amazon Workers Strike for Contract Negotiations Ahead of Holiday Season
Workers at seven Amazon (NASDAQ:AMZN).com facilities across the U.S. walked off the job early Thursday in an effort to push the retail giant into contract negotiations with their unions. According to the International Brotherhood of Teamsters, the strike, which involves warehouse employees in cities such as New York, Atlanta, and San Francisco, was described as the "largest" strike against Amazon. The union represents about 10,000 workers across 10 of Amazon's facilities.
Teamsters General President Sean O'Brien criticized Amazon late Wednesday, stating that any delays in packages during the holiday season would stem from the company’s “insatiable greed.” O'Brien emphasized that the union clearly communicated December 15 as the deadline for Amazon to initiate negotiations. However, Amazon ignored this deadline, leading to the strike.
Prior to the strike, warehouse workers had voted to authorize the action. In response, Amazon stated that it did not expect significant disruptions to its operations. A company spokesperson accused the union of misleading the public and attempting to coerce its employees and third-party drivers into joining the strike.
The facilities participating in the strike account for only 1% of Amazon’s hourly workforce. Additionally, the presence of multiple warehouses and smaller delivery centers in areas like New York City may help Amazon mitigate the strike’s impact. Observers suggested that Amazon might abstain from entering negotiations as it could encourage more union actions.
The company, which employs over 1.5 million people globally, has expressed a preference for direct relationships with its workforce. Despite the strike, Amazon's stock rose slightly in pre-market hours, indicating that investors do not expect significant disruptions from the strike.
Earlier this year, Amazon announced a $2.1 billion investment to increase wages for logistics and shipping workers in the U.S. This led to a minimum wage increase of at least $1.50 for employees, resulting in an average hourly wage of about $22, which represents approximately a 7% increase.