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AMAZON'S SUCCESS THREATENED BY STRIKES

AdrianHancu / iStock Editorial via Getty Images
Douglas A. McIntyre
Published: December 18, 2024 8:15 am


Unions have used work stoppages at Amazon.com Inc. (NASDAQ: AMZN) more than once
in an attempt to improve pay and benefits. As recently as Black Friday and Cyber
Monday, workers staged strikes in over 20 countries. Labor is about to hit the
company again in the middle of the year’s busiest e-commerce shipping week.


24/7 WALL ST. KEY POINTS:

 * Strikes are about to hit Amazon.com Inc. (NASDAQ: AMZN) in the middle of the
   year’s busiest e-commerce shipping week.

 * Amazon’s e-commerce revenue is most at risk during the holiday season.

 * Take this quiz to see if you’re on track to retire. (sponsored)


THE STRIKE

vanhoosear / Flickr
Teamsters target Staten Island shipping warehouse.

The huge Teamsters union, the largest union in America, represents a portion of
Amazon’s workers. However, the union does not have a large enough presence to
hamper its business nationwide, but it has a presence in key locations. Among
these is the shipping warehouse in the New York City borough of Staten Island.



The company has downplayed a potential labor action as an inconvenience. But,
this may not be true. According to CNN, “It’s also a sign that organized labor
is trying new strategies to represent workers at Amazon, America’s second
largest private sector employer.”

The Teamster strategy is twofold. The first part is an attempt to negotiate a
deal directly with the company. The other is to shame Amazon in public. Part of
this public aspect is statements that include the company’s unwillingness to pay
workers enough to “put food on the table.”

Amazon has claimed that some of the workers involved in the potential labor
stoppage cannot be members of the Teamsters because they are parts of other
labor negotiations. An NLRB ruling appears to state otherwise.

A union action could spread if management will not talk to labor at the Staten
Island facility. According to The Guardian, “Thousands of Amazon workers are
gearing up to strike from Thursday, days before Christmas, over the tech giant’s
refusal to begin negotiations over a contract.”

Amazon’s e-commerce revenue is most at risk during the holiday season. Labor
means hitting Amazon as hard as possible before those holidays end.

Amazon Stock (AMZN) Price Prediction and Forecast 2025-2030


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card issuers.


Read more: Retail, Amazon strike

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Contact the 24/7 Wall St. editorial team.




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