Workers at Amazon Strike Amid Holiday Rush

Workers at seven Amazon.com (NASDAQ:AMZN) facilities across the U.S. initiated a walkout early Thursday to push the retail giant into contract discussions with their union.

The strike involves warehouse employees from cities including New York, Atlanta, and San Francisco, and has been characterized as the "largest" against Amazon by the International Brotherhood of Teamsters, which represents approximately 10,000 workers across 10 of Amazon's facilities.

Union Criticism

Teamsters' General President Sean O'Brien criticized Amazon on Wednesday, stating that any holiday package delays are a result of Amazon's "insatiable greed." He highlighted that the union had set a Dec. 15 deadline for negotiations, which Amazon ignored, leading to the strike.

Strike Authorization

Prior to the strike, warehouse workers voted to authorize it. In response, Amazon claimed it does not expect significant operational disruption and accused the union of misleading the public and trying to coerce employees and third-party drivers to join the strike.

Impact and Negotiations

The affected facilities represent only 1% of Amazon's hourly workforce. Amazon’s extensive network of warehouses and delivery depots in places like New York City may limit the strike's impact. Observers suggest Amazon might refrain from negotiations to avoid encouraging more union actions.

The company, which has over 1.5 million global employees, prefers direct relationships with its workforce.

Market Reaction

Despite the strike, Amazon's shares saw a slight increase in premarket trading, indicating that investors do not anticipate major disruptions.

Earlier in the year, Amazon announced a $2.1 billion investment to raise pay for its U.S. fulfillment and transportation employees, increasing base wages by at least $1.50, bringing the average hourly wage to around $22, reflecting a roughly 7% rise.

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