By Sara Ashley O'Brien,
April 1, 2022
(CNN Business)Amazon (AMZN) warehouse workers at a facility in New York City have voted to form the first US union in the tech giant's 27-year history, marking a stunning victory for a bootstrapped effort led by a fired employee.
In a closely watched election, workers at a Staten Island, New York, facility known as JFK8 voted in favor of forming a union with a newly-established organization called Amazon Labor Union (ALU), which was started by current and former warehouse employees.
There were 2,654 votes in favor of unionizing and 2,131 votes against it by the end of the second and final day of public vote counting on Friday. Out of approximately 8,325 eligible voters, 4,785 votes were counted and another 67 were challenged. Seventeen ballots were voided.
The parties have five business days to file any objections.
In a statement after the vote, Amazon indicated that it is exploring various legal channels to fight the results. "We're disappointed with the outcome of the election in Staten Island because we believe having a direct relationship with the company is best for our employees," Amazon said in the statement. "We're evaluating our options."
The staggering result could prove to be a milestone moment for Amazon and the broader labor movement in the United States. The union vote has the potential to upend how Amazon, the country's second largest private employer, engages with some members of its vast workforce. It could also add fuel to organizing both within the company's own sprawling empire, where some efforts are already underway such as at an Amazon Fresh store in Seattle, as well as at other companies across the country.
Shortly after the tally was complete, Christian Smalls, the president of ALU who is largely the face of the organization, joined a crowd of other ALU organizers and members of other labor groups that had gathered in downtown Brooklyn to celebrate the win. Sipping from a bottle of champagne and wearing pants emblazoned with the brand name "Billionaire Boys Club," Smalls gave a brief history of his contentious relationship with the company.
"Two years ago, my life changed forever," said Smalls, who was fired from his job at the facility in March 2020 after leading a walkout to protest pandemic related health and safety concerns. (Smalls says he was retaliated against; Amazon says he was terminated for violating its policy that required him to quarantine after being notified of a possible Covid-19 exposure.) "I only wanted to do the right thing and speak up for workers behind me," he said
In his speech, he also mentioned a widely reported suggestion by an Amazon executive in 2020 to disparage Smalls as "not smart or articulate." At the time, the executive said his comments were "personal and emotional," and that he'd allowed his emotions to "get the better of me."
"It's not about me. Amazon tried to make it about me from day one," Smalls said. "It's always going to be Amazon versus the people and today, the people said they wanted a union."
At the gathering, some handed out fliers that read, "Vote Yes For The Union. Despite what Amazon tells you, the union isn't some outside organization. It's a legal recognition of our right to have a say at work — as a group instead." Members of another pro-labor group held a large sign that read: "Amazon and Starbucks: Stop Union Busting! Recognize the union and negotiate now!"
The results of a separate do-over election at a facility in Bessemer, Alabama were too close to call. A total of 875 workers at the facility voted for joining a union and 993 voted against it, according to the tally, which was also conducted on Thursday. But another 416 ballots were challenged. The National Labor Relations Board expects to hold a hearing on the matter in the next few weeks to determine whether any of the challenged ballots will be opened and counted.
A bootstrapped push succeeds while an established union stumbled
Both union efforts were borne out of worker frustrations with Amazon's treatment of workers amid the pandemic and were also motivated in part by increased national attention to racial justice issues and labor rights. But there are key differences between the two.
The Alabama effort was done in coordination with the Retail, Wholesale and Department Store Union (RWDSU), an 85-year-old labor union, which has organized tens of thousands of workers. By contrast, the Staten Island push is not aligned with an existing labor union but rather is trying to create its own.
A demonstrator during the vote count to unionize Amazon workers outside the National Labor Relations Board offices in the Brooklyn borough of New York, U.S., on Friday, April 1, 2022.
He has sought to differentiate his organizing effort from the one in Bessemer, stating that having an independent union led by current and former employees of the facility "was working and resonated with the workers." (ALU has also garnered enough signatures for an NLRB election at a nearby Amazon facility in Staten Island later this month.)
The two union pushes are also unfolding in two very different parts of the country. The RWDSU drive occurred in Alabama, a right-to-work state, where union membership is low. New York, on the other hand, has the second highest union membership in the nation. Amazon's starting wage for workers of at least $15 an hour also fares differently in Alabama where the minimum wage is $7.25, compared to New York City's $15.
"They're enormously important elections. [Amazon] is a company that is not just retail, it is not just logistics, it cuts across almost every sector of the economy," Logan said.
"I think lots of pro-union Amazon workers will take inspiration from this. There's nothing exceptional about Staten Island to suggest that you can win at Amazon there but not somewhere else," Logan said, "All of a sudden, organizing at Amazon no longer seems futile."
Logan credits the initial RWDSU Bessemer drive one year ago, which was celebrated by a number of celebrities and politicians alike, with broadly creating "energy and enthusiasm amongst young people interested in organizing themselves." While the results of that election favored Amazon, a do-over was called for after the company was deemed to have illegally interfered. (An Amazon spokesperson called the decision "disappointing" at the time.)
Labor experts have repeatedly said that organizing Amazon workers is an incredibly difficult task given current labor law and the company's opposition to such efforts. Amazon's anti-union campaigns included signage inside its warehouses, text messages, and meetings that workers were required to attend before the election periods kicked off.
Amazon has previously said its "employees have always had the choice of whether or not to join a union" and that it is focused on "working directly with our team to make Amazon a great place to work."
For more on the biggest and most important technology companies of our time, watch Land of the Giants: Titans of Tech on CNN+. This exclusive new series investigates the complicated history and meteoric rise of Meta (formerly Facebook), Apple, Amazon, Netflix and Google.
Catherine Thorbecke and Clare Duffy contributed to this report
In a six-day election, warehouse workers in Staten Island, New York, voted to join the Amazon Labor Union.
Laura Hautala
April 1, 2022
Amazon Labor Union organizer Chris Smalls at an Amazon facility in Staten Island, New York. The union became the first to win an election at a US Amazon facility on Friday.
In a first for the Amazon's US facilities, warehouse workers in Staten Island, New York, have voted in favor of joining a union. The union's win, if certified by the federal labor board, adds momentum to an organizing movement that's been gaining steam around the country.
The tally of 2,654 yes votes to 2,131 no votes came after six days of in-person voting at the warehouse and an intense campaign. In the leadup to the vote, the union filed complaints to the National Labor Relations Board alleging that Amazon engaged in unfair labor practices.
The Amazon Labor Union, a new group that was formed by current and former Amazon workers, emerged from workers' efforts to demand better COVID-19 protections in 2020. The group eventually began an organizing bid after some workers involved in planning walkouts were disciplined or fired. That included fired worker Chris Smalls, who caught the attention of Amazon's top leadership. In a memo that was later leaked, Amazon's general counsel, David Zapolsky, said the company should try to make him the face of the movement because he's "not smart or articulate."
In a tweet Friday, Smalls said Amazon got what it hoped for. "Amazon wanted to make me the face of the whole unionizing efforts against them.... welp there you go!" he wrote, addressing the comments to Zapolsky and Jeff Bezos.
Separately, a vote on unionization at an Amazon facility in Alabama failed on Thursday, though the result could be affected when hundreds of challenged ballots are resolved.
Amazon said in a statement that it's disappointed with the results of the Staten Island vote: "We believe having a direct relationship with the company is best for our employees."
The statement went on to say that Amazon would evaluate its options for filing objections to the election based on "inappropriate and undue influence by the NLRB." Amazon didn't respond to a follow-up question from CNET about what that alleged influence involved.
"The NLRB is an independent federal agency that Congress has charged with enforcing the National Labor Relations Act," said NLRB spokesperson Kayla Blado in a statement. "All NLRB enforcement actions against Amazon have been consistent with that Congressional mandate."
At a briefing with reporters, White House press secretary Jen Psaki said President Joe Biden "was glad to see workers ensure their voices are heard with respect to important workplace decisions." She added, "He believes that every worker in every state must have a free and fair choice to join a union and the right to bargain collectively with their employer."
The Staten Island victory defied predictions of labor experts, who noted before the election that the union only secured support from 30% of workers when they formally requested a union election. Amazon expressed skepticism that the workers' group had even achieved that benchmark but agreed to move ahead with the election. ALU also won in the face of Amazon's extensive campaign urging workers to vote no, including mandatory meetings with consultants describing downsides to unions and messages sent to phones and posted around work spaces.
"It's very, very difficult to win in any circumstances, and especially against an employer with unlimited resources," said Rebecca Givan, an associate professor of labor relations at Rutgers University.
A new union strategy
Connor Spence, vice president of membership at ALU, said turning in signatures from just over 30% of workers was a strategic move. By the time organizers got 50% of signatures, many of the people who signed on would likely have stopped working at the facility because turnover is so high. Instead, the union's team of about 20 core organizers worked to file for an election as quickly as possible and focus on the existing group of workers while they were still employed at the warehouse.
"That's the only strategy that will work at Amazon," Spence said, adding it was especially true for a union with limited resources.
A single unionized warehouse is unlikely to have an effect on customer experience or Amazon's bottom line. Still, it could inspire further organizing, said Sucharita Kodali, a retail analyst at Forrester, which is one reason for Amazon's aggressive approach.
"It's been something that Amazon has been advocating against for a long time," she said.
The company is also facing higher labor and logistics costs at a time of rising wages, after having spent the pandemic growing its capacities with new facilities that need staffing.
Amazon has said it thinks unions will get in the way of communication between managers and workers, slowing things down. The company spent $4.3 million on anti-union consultants in 2021, according to a report Thursday from HuffPost. It's not known how much the company has spent so far this year fighting organizing drives at Staten Island as well as in Bessemer, Alabama, where a separate union drive culminated in a vote that was also counted Thursday.
In the Alabama election, workers voted not to join the Retail, Wholesale and Department Store Union. However, the results can't be finalized until more than 400 challenged ballots are resolved.
ALU secured an early lead when counting began Thursday at the NLRB office in Brooklyn, New York, widening to more than 300 votes by the end of the day. Counting resumed Friday morning. A separate warehouse in Staten Island has also petitioned for a union vote.
Spence, ALU's vice president of membership, said the union is still getting used to the feeling of victory.
Still, he said, "Failure was never an option."
First published on April 1, 2022
Jon Skolnik, Salon
April 01, 2022
Representative Alexandria Ocasio Cortez speak about the importance of a Green New Deal at a town hall organized by the Sunrise Movement.
Rep. Alexandra Ocasio-Cortez, R-N.Y., is in hot water for promoting an employee-led organizing effort at Amazon after critics noted that she backed out of a speaking engagement with those same employees during a union rally last summer.
The spat played out over Twitter on Thursday, when the Amazon Labor Union, which recently held a successful union vote at an Amazon facility in New York City's Staten Island, revealed that it was winning by 400-vote margin.
About an hour later, Ocasio-Cortez expressed solidarity with the union. But that comment did not sit well with some leftist commentators, including most notably, Krystal Ball, a host of the "Breaking Points" podcast.
"Here's the guy who organized the union drive talking about how you left them high and dry," Ball responded, tweeting a video of her interview with Amazon labor organizer Christian Smalls. "These are your constituents and you couldn't be bothered to show up until they're on the cusp of victory."
For his part, Smalls also piled on Ocasio-Cortez, who represents parts of Queens and the Bronx.
"So what exactly is the insinuation here?" the progressive lawmaker shot back. "That we are secretly in the tank for Amazon? That we're 'sellouts' despite leading congressional investigations into Amazon, taking huge blowback to call out the scam HQ2 deal, meeting with workers in our district warehouses? It's reaching."
RELATED: Biden just backed a union drive in Alabama but didn't mention Amazon. Here's why that's a good thing
The exchange appears to stem from an incident last August when Ocasio-Cortez was slated to appear for a speech at a rally held by the Amazon Labor Union. Before the event, however, the progressive lawmaker unexpectedly canceled her appearance over "scheduling conflicts" and "security concerns."
"Security was an issue as well. 2021 included a lot of high level threats on my life, which limited what activities I was able to do, especially those outside," as Ocasio-Cortez explained over Twitter. "The combination of that + when we are able to get resources/time to secure them creates scheduling + logistical conflicts."
On Friday, the Amazon Labor Union in Staten Island officially voted to unionize, marking one of the biggest labor victories in modern American history. According to the National Labor Relations Board, the union vote won by more than 10 percentage points with 2,654 votes for the Amazon Labor Union and 2,131 against. The Staten Island facility, which employs roughly 6,000 workers, is now the first Amazon facility in the company's history to join a union.
During the leadup to the union drive, Amazon aggressively fought to stamp out the organizing effort, posting anti-union signage in its facility, holding mandatory weekly meetings about the alleged ills of unionization, and hiring a Democratic consultancy to advise them on various union avoidance tactics.
RELATED: Amazon election: Why union votes are so tough for labor to win
The Amazon Labor Union was led by Smalls, a former Stand Island Amazon worker who alleges he was fired back in 2020 for organizing protests against the company's non-observance of social distancing amid the spread of COVID-19.
"I say what I say and that's what got me here," Smalls told Bloomberg before the election. "The same thing with the union: It represents what the workers want to say."
On Friday, the House of Representatives opened a federal probe into Amazon's unfair labor practices. Leaders of the inquiry, which includes Ocasio-Cortez, have demanded that the company hand over documents related to its labor policies and procedures, particularly when it comes to severe weather events like the Illinois tornado that ripped through an Amazon warehouse back in January, killing six workers who were told to stay despite fearing for their safety. She also joined Rep. Carolyn Maloney, D-N.Y., in a letter to Amazon demanding more information about its worker safety protocols.
Brad Reed
April 01, 2022
Jim Cramer (CNBC/screen grab)
CNBC host Jim Cramer does not appear enthused about the historic win for organized labor that occurred on Friday when an Amazon warehouse in State Island voted to unionize.
While discussing the victory on CNBC, Cramer complained that Amazon will no longer be allowed to order their workers at the State Island warehouse to show up whenever they're needed.
"If you can't tell your employees when they work, then you're really not able to have much of an ability to move product," he said. “The unions will be in charge of time that you need to work, and that would be dreadful!"
Cramer did acknowledge unions do exist in other companies and that those companies are still profitable, but he then pivoted back to griping about unions being able to set schedules for workers.
"No one wants to work certain shifts," he said. "So you can just say, 'Listen I'm not going to work that shift.' And Amazon would not be able to say, 'Yes you must work it!' So that's what's at stake with unions."
Cramer also added that "one reason why Amazon works so well is that people must work when Amazon says you must work."
Watch the video below.