Tuesday, October 18, 2022

 Amazon warehouse workers in NY state vote against union


·Senior Reporter

Amazon (AMZN) workers at a warehouse near Albany, New York voted against joining the Amazon Labor Union (ALU), in a blow to a union that had a historic victory at JFK8 in Staten Island earlier this year.

The final count was 406 against the union, and 206 for the union, with 31 challenged ballots. The warehouse, which is at Castleton-on-Hudson, represented the ALU's first attempt at organizing outside New York City, coming after its win in Staten Island.

"This isn't a surprising outcome — unions have long been reluctant to take on companies like Amazon because you're so unlikely to win," said John Logan, director of labor studies at San Francisco State University.

Amazon workers in New York haven't been alone in expressing dissatisfaction with the company. Last week, Amazon workers participated in high-profile walkouts and strike actions at Amazon facilities in CaliforniaIllinois, and Georgia. The California walkout took place at an air facility in San Bernardino — less than 20 miles from Moreno Valley, where workers looking to be represented by the ALU almost simultaneously filed for an election with the NLRB.

"The difficulty at Amazon is that getting the 30% support to trigger an election is already a victory, especially given the incredible rate of turnover at Amazon facilities," Logan said.

The reality is this, Logan said: A win near Albany would have made a huge difference.

"This would have been a huge boost, each one of these victories do inspire young workers," Logan added. "It's going to be tough, there's no doubt. This loss does partly show that there are benefits to an established union — setbacks like this can be difficult to manage, and resources to push on can make a difference."

For its part, Amazon has been making moves to boost its reputation as an employer. The company announced plans last month to spend $1 billion raising pay for its warehouse and delivery workers, putting the starting wage for most of those employees at $19 an hour. The company's minimum wage for hourly workers remains at $15 an hour, about twice the national minimum wage and roughly aligning with the state minimum wages in New York and California.

“We’re glad that our team in Albany was able to have their voices heard, and that they chose to keep the direct relationship with Amazon as we think that this is the best arrangement for both our employees and customers," Amazon spokesperson Kelly Nantel said. "We will continue to work directly with our teammates in Albany, as we do everywhere, to keep making Amazon better every day."

What comes next

For the warehouse near Albany, it's possible that the ALU may back off in the near-term because it doesn't have many options. For one, the 31 challenged ballots are off the table from here.

"The labor board will only litigate challenges as to individual voters if it's outcome-determinative," said Andrew MacDonald, labor and employment partner at Fox Rothschild. "Because the challenges aren't outcome-determinative here, that avenue is closed off."

Objections are also possible, but a huge investment of time and money.

"As an independent union, it's unclear if it'll be worth it to the ALU to offer up those resources," said MacDonald. "It's unclear how to read an independent union as opposed to a more established union, where you can look at long-term trends."

There's reason to suspect that the Amazon Labor Union might turn its attention to a Moreno Valley, C.A. warehouse where workers recently petitioned for an election, seeking representation by the ALU.

"I think if you're the ALU, and you have a new petition, you invest more of your energy in California," said MacDonald.

However, the petition phase can be a fragile one, said MacDonald.

"The union is constantly testing its support, and can pull the petition if they feel support is dwindling," he told Yahoo Finance.

Still, it's fairly likely a vote will come to pass where a petition is filed, as is the case in Southern California.

"In most cases if a petition is filed, there will be an election," said MacDonald.

From here, there are also opportunities for data-gathering and strategizing on both sides, who will be operating with the expectation that these labor fights will continue, according to Syracuse University professor Lynne Vincent.

"From here, ALU can try to determine the major factors in employee decisions and see how they can address those for future campaigns," she said. "For Amazon, it means that their campaign countering union organization still works. Amazon may try to answer some of the same questions that ALU needs to answer. What are the differentiating factors for the different warehouses, and how do we leverage those?"

Ultimately, despite this setback, it's unlikely that organizing and union activity will stop at Amazon, or its counterparts like Apple (AAPL) and Starbucks (SBUX), despite an increasingly challenging macroeconomic environment, according to Vincent.

"With the current economic and political undercurrents, employee discontent and frustrations are not going to dissipate," Vincent said. "This union movement surge has been building for a long time, and I do not believe that we have seen its peak."

An Amazon Labour Union (ALU) organizer greets workers outside Amazon’s LDJ5 sortation center, as employees begin voting to unionize a second warehouse in the Staten Island borough of New York City, U.S. April 25, 2022. REUTERS/Brendan McDermid.

The ALU hasn't returned Yahoo Finance's request for comment, but ALU president Chris Smalls issued a statement on Tuesday, suggesting this is far from over.

“Most of all, we are filled with resolve to continue and expand our campaign for fair treatment for all Amazon workers," the statement reads. "You miss 100% of the shots you don’t take.”

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