Amazon’s Big Problem Gets Bigger

In a boxing match, both opponents know that each round may be the last. But they often assume that the first rounds are moments of observation to try to destabilize the adversary; see if the lessons learned from the sparring partner were the right ones. Both opponents also know that if they take a violent uppercut it could just be the end of the fight. In any case, an uppercut or a knockout will send a clear message to future opponents: they are vulnerable. 

Amazon  (AMZN) – Get Amazon.com, Inc. Report has just taken one such hit in its standoff to avoid the formation of unions within the company.

Workers at an Amazon warehouse in New York just voted  to join an upstart union, a historic victory for organized labor union. But in doing so, they inflicted a resounding defeat on Amazon, which did everything to block their efforts.

This vote is the first entry of unions at Amazon in the United States and it is likely an encouraging message and a positive signal for workers seeking to organize themselves at other companies like Apple  (AAPL) – Get Apple Inc. Report.

A first in The United States Since The Creation of Amazon in 1994

The vote took place in the Amazon warehouse on Staten Island in New York,  known as JFK8. Besides the defeat, what is also worrying for the e-commerce giant is that the result was not close.

The vote count gave 2,654 “Yes” to join the union and 2,131 “No.” There were 67 challenged ballots, which means that even by classifying them in the No, the vote in favor of unionization prevails. Approximately 8,325 workers were eligible to vote whether to become part of the Amazon Labor Union. 

The results still need to be formally certified by the National Labor Relations Board (NRLB).

By voting in the Amazon Labor Union (ALU), Staten Island workers could challenge the company’s current labor model, which is the backbone of its Prime two-day shipping promise, according to CNBC. Unions stand to disrupt the level of control that Amazon exerts over its warehouse and delivery employees, such as its ability to unilaterally set the pace of work and hourly wages.

Unless the company can get the result overturned, Amazon will have to start contract negotiations that potentially could affect the organization of work. The company has until April 8 to dispute the results.

Basically, Amazon will now negotiate with ALU regarding wages, benefits and working conditions with the union in this warehouse, one of the largest of the group founded by Jeff Bezos.

“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,” the company said in a statement. “We’re evaluating our options, including filing objections based on the inappropriate and undue influence by the NLRB that we and others (including the National Retail Federation and U.S. Chamber of Commerce) witnessed in this election.”

Other Amazon Warehouses May Follow

Amazon did everything to prevent the Yes victory. The group has even set up a special website: “We invest in the full you – your wellness, your career, and your life,” the company wrote.

“@amazon wanted to make me the face of the whole unionizing efforts against them…. welp there you go! @JeffBezos @DavidZapolsky CONGRATULATIONS,” Christian Smalls, one of the leaders of union activism at Amazon, rejoiced on Twitter. “@amazonlabor We worked had fun and made History ‼️✊🏾 #ALU # ALUfortheWin welcome the 1st union in America for Amazon.”

Smalls, a former JFK8 manager, who was fired by Amazon in 2020 because he violated social distancing rules, the company said. Smalls said he was fired in retaliation for staging a protest in the early weeks of the coronavirus pandemic to call for stronger safety measures.

Amazon faces a second union drive at a Bessemer, Alabama warehouse. The company won rejection of a union last year, but the National Labor Relations Board held that it had acted improperly and ordered a revote. The result of that vote is not yet officially known because there are  enough ballots in dispute  to change the outcome. A court hearing on the ballot challenges is expected later this month.

Meanwhile, public pressure to push companies to make room for unions continues to mount. Unionization votes have been won at Starbucks  (SBUX) – Get Starbucks Corporation Report restaurants and even at Google  (GOOGL) – Get Alphabet Inc. Class A Report Fiber contractors in Kansas City, Missouri.

“For the very first time, workers at @amazonlabor were successful in organizing a union at an Amazon facility. I congratulate them on their extraordinary victory,” U.S. senator Bernie Sanders wrote on Twitter. “I believe it’s going to be a shot in the arm for this country’s labor movement.”

The unions’ victory at Amazon Staten Island could galvanize workers at other big companies because the e-commerce giant has fought so hard to block union organizing efforts so far.

Groups at at least two Apple retail stores are backed by major national unions and are preparing to file paperwork with NLRB in the near future