Amazon Hit By Workers

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By Douglas A. McIntyre Published
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Amazon Hit By Workers

© Amazon Prime Delivery Trucks (CC BY-SA 2.0) by Todd Van Hoosear

2022 may be the year of unionization at some of America’s largest companies. Some Amazon, Apple, and Starbucks workers have tried, and in some cases, had success unionizing stores. However, the results of the efforts have been mixed. The huge public corporations have fought back aggressively. As is often the case, a major step of unionization is strikes. Amazon faces a huge one.
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According to Bloomberg, Amazon workers will stage walkouts in warehouses across 40 countries. They will likely be most widespread in Germany and France. The reasons for the strikes are the same as they have been for decades. Workers are paid too little. Their work conditions are poor. This could be dangerous conditions at facilities. Their vacation time is too short.

The effort to unionize at Amazon’s warehouses in the U.S. has been spotty. The Amazon Labor Union’s most recent target was in upstate New York. In that case, workers voted against the union. The same group had a victory in Staten Island.

Amazon says it pays workers well. Payscale reports that the average hourly pay is just below $18. While this is higher than Starbucks and McDonald’s, it may be too little to cover daily living expenses, particularly as inflation rises.

Amazon’s Achilles heel is its warehouse system. The huge facilities are the distribution hubs and they store goods for Amazon’s huge army of trucks and those it uses from FedEx and UPS. Any one of these that is shut down could disrupt delivery across a large geographic area. That significantly affects Amazon’s revenue, particularly during the holiday season.
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Is this the year labor posts significant headway against Amazon? At this point, the walkouts don’t appear widespread enough. Unionization movements often take time. There is always next year.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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