Amid peak holiday shopping, Amazon.com
What Happened: Workers at seven Amazon facilities in the U.S. initiated a strike on Thursday. The action is part of a push to engage the company in contract negotiations with their union.
The International Brotherhood of Teamsters, representing approximately 10,000 Amazon workers across 10 facilities, labeled this as the "largest" strike against the company. Employees from cities such as New York, Atlanta, and San Francisco are participating in the walkout, Reuters reported on Thursday.
Despite the strike occurring during the peak holiday shopping period, Amazon has stated that it anticipates no disruptions to its operations. The company accused the Teamsters of misleading the public and attempting to coerce employees and drivers into joining the strike.
Unions represent a mere 1% of Amazon's workforce, which is one of the largest in the U.S. by market value. The union had set a deadline of December 15 for Amazon to commence negotiations, following a vote by warehouse workers to authorize the strike.
Why It Matters: The strike threat was initially announced on Dec. 16, when the Amazon Teamsters declared their readiness to strike over what they described as unfair labor practices. The union emphasized the need for Amazon to negotiate a union contract addressing issues such as low pay and unsafe working conditions.
This labor action follows a vote by workers at two New York City facilities, JFK8 and DBK4, to authorize a strike, setting a Dec. 15 deadline for Amazon to engage in contract talks. The ongoing labor dispute highlights the growing tension between Amazon and its workforce, as the company continues to face scrutiny over its labor practices.
Price Action: Amazon was up by 1.40% during pre-market hours on Thursday, according to Benzinga Pro.
