Amazon’s Success Threatened by Strikes

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By Douglas A. McIntyre Published

Quick Read

  • 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.

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Amazon’s Success Threatened by Strikes

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Unions have used work stoppages at Amazon.com Inc. (NASDAQ: AMZN | AMZN Price Prediction) 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.

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

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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