Will Amazon’s Union Crackdown Backfire? Judge Rules Against Labor Practices – Amazon.com (NASDAQ:AMZN)


Amazon Found Guilty of Violating Federal Labor Laws at JFK8 Warehouse

Amazon.com Inc (NASDAQ: AMZN) has recently been found guilty by an NLRB judge of violating federal labor laws at its JFK8 warehouse in New York. The violations occurred between May and October 2021. This ruling comes at a time when union activities at Amazon are gaining traction, including the historic vote in April 2022 where JFK8 employees joined the Amazon Labor Union (ALU), making it Amazon’s first unionized facility in the United States.

Judge Lauren Esposito found that Amazon interfered with union activities, which included confiscating organizing materials, surveilling employees, and retaliating against pro-union employees. CNBC reports that Amazon employee Daequan Smith was dismissed in November 2021, likely due to his union support. The judge also noted that Amazon’s hired “union avoidance” consultant, Bradley Moss, illegally threatened employees by stating that unionization efforts would be futile. In 2022 alone, Amazon spent $14 million on such consultants.

As a result of the ruling, Amazon is required to post worker rights notices at JFK8 and DYY6 facilities and compensate Smith for lost earnings and benefits. Moss’s racially disparaging remarks about union organizers, comparing them to “thugs” and downplaying another union campaign at Amazon’s Bessemer, Alabama facility as a “Black Lives Matter protest,” were also highlighted in the judgment.

Despite the ruling, Amazon spokesperson Eileen Hards expressed disagreement with certain aspects, particularly the reinstatement of the terminated employee. Amazon continues to face scrutiny over its labor practices, with 240 open or settled unfair labor practice charges in 26 states. The company is also challenging the unionization results at JFK8.

Despite Amazon’s efforts to improve worker pay and conditions, unionization efforts persist, illustrating ongoing tensions. The company has faced similar accusations in other countries, such as the recent allegations of anti-union practices at Apple.

In terms of stock performance, AMZN shares traded lower by 0.56% at $146.21 premarket on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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