Amazon could face strike in U.S. during busy holiday season
Teamsters—a labor union group—said that Amazon (NASDAQ:AMZN) will face its largest strike in U.S., starting Thursday, amidst a busy holiday season.
The workers are demanding better wages and working conditions amid claims that the retailer (AMZN) failed to negotiate effectively with the union. Workers at the facility said a union contract should include minimum pay of $30 per hour and better safety protections.
“If your package is delayed during the holidays, you can blame Amazon’s insatiable greed. We gave Amazon a clear deadline to come to the table and do right by our members. They ignored it,” said Teamsters General President Sean M. O’Brien.
Teamsters said that the strike will impact several major cities, including New York City, Atlanta, San Francisco, and Skokie, Illinois. Workers from multiple facilities will join picket lines.
The union claims to represent approximately 10,000 workers at 10 Amazon (AMZN) facilities across country, which makes up about 1% of its hourly workforce.
“These greedy executives had every chance to show decency and respect for the people who make their obscene profits possible. Instead, they’ve pushed workers to the limit, and now they’re paying the price. This strike is on them,” added O’Brien.
The strike threatens to disrupt the e-commerce giant’s (AMZN) operations at one of its busiest times of the year.
While the company has multiple warehouses that may mitigate some impacts, the scale of the strike could still lead to potential delays in order fulfillment and delivery. Amazon did not immediately respond to Seeking Alpha’s request for comment.
“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.’ They don’t, and this is another attempt to push a false narrative,” an Amazon spokesperson told ABC News, adding that the Teamsters have illegally coerced workers to join the union.
“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.” Amazon spokesperson Kelly Nantel said.
The spokesperson added that the company has increased the minimum starting wage by 20% for workers in fulfillment centers and for transportation, and in September increased the average base wage to $22 per hour.
The retailer has garnered a 47% share price gain this year, and its stock price is marginally higher, up 0.39%, to $221.38 per share during after-hours trading on Wednesday.