If you have delayed your Christmas shopping until now, hoping to rely on Amazon for your gift-giving pursuits, you might be in store for bad luck – maybe. At the peak of the holiday season, Amazon workers walked off the job and hit the picket line across several US facilities. This continues the labor-strife trend occurring over the last couple of years amid elevated living costs. Like their predecessors, will the thousands of Amazon workers succeed?
Amazon Workers Delivering Holiday Anxiety
On Dec. 19, Amazon workers went on strike across seven facilities throughout California, Georgia, Illinois, and New York in pursuit of higher wages, enhanced benefits, and safer working conditions. The strike, organized by the International Brotherhood of Teamsters, was deemed the largest in Amazon's US history. It was designed to apply pressure on the $2 trillion company at the negotiating table. The union initially gave the retail juggernaut until Dec. 21 to agree to bargaining dates for a contract.
Since it is Amazon's busiest time of the year and a tsunami of retailers and vendors utilize the platform, it was undoubtedly quite the opportunity to gain a bargaining chip ahead of discussions.
Teamsters President Sean O’Brien blamed Amazon for any shipment delays. “If your package is delayed during the holidays, you can blame Amazon’s insatiable greed,” he said in a statement. “We gave Amazon a clear deadline to come to the table and do right by our members. They ignored it.”
An Amazon spokesperson, Kelly Nantel, told the press that the Teamsters union has engaged in a campaign to "intentionally mislead the public," adding that the protesters at the sites are "almost entirely outsiders." The company added: “The truth is that they were unable to get enough support from our employees and partners and have brought in outsiders to harass and intimidate our team, which is inappropriate and dangerous." Amazon will now shift its focus to ensuring customers receive their Christmas orders.
According to the Teamsters, approximately 10,000 Amazon workers have enrolled in the union. This accounts for fewer than 1% of the corporation's 1.53 million-strong workforce.
Meanwhile, the union has alleged for the past year that Amazon’s objective of speed and efficiency at its factories can result in injuries. The world’s second-largest private employer—Walmart is at the top of the employment mountain—has denied these assertions, stating that it pays industry-leading wages and has installed automated practices to mitigate repetitive stress.
It is unclear how much impact this strike could have. Amazon does not believe it will influence operations, though industry experts warn that a prolonged strike could delay shipments in major urban centers.
Investors were little concerned by the latest labor dispute. The stock rose more than 1% during the Dec. 19 trading session, topping $223 per share. It was slightly down in after-hours trading.
A Year of Labor Disputes
With 2024 coming to an end, it is a time of reflection. One of the main stories of the last 12 months was the various labor disputes that unfolded nationwide and in different sectors. The US was potentially on the cusp of economic catastrophe when the International Longshoremen’s Association walked off the job. The strike was resolved in just three days. Boeing factory workers participated in job action, contributing to the worst jobs report since December 2020. Hundreds of culinary workers in Las Vegas went on strike in November.
For the last couple of years, the United States economy has endured a tidal wave of union-led protests unseen in 50 years. Americans should not be surprised, considering that when inflation spirals out of control and eats away at 20% of the public’s paycheck, struggling employees will rise up and demand more from multi-billion-dollar, multi-national corporations. The Big Three automakers, Hollywood studios, and casinos witnessed this firsthand.
Will 2025 be any different? It all depends on how inflation is managed over the next 12 months.
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