Workers at seven Amazon (AMZN) fulfilment centres in the U.S. have gone on strike during the busy year-end holidays to pressure the company into contract talks with their union.
Warehouse workers in cities from New York to San Francisco are taking part in the job action against Amazon, according to the International Brotherhood of Teamsters, which represents about 10,000 workers at 10 of the e-commerce company’s facilities.
Amazon, which is based in Seattle, said it doesn’t expect any impact on its operations because of the strike, despite it occurring during the busiest time of the year for the company.
Only about 1% of Amazon’s workforce is represented by the Teamsters union, and it has multiple fulfillment centres in most metropolitan areas across America.
The union is trying to pressure Amazon to enter collective bargaining with its warehouse workers, something it has so far refused to do.
Amazon has previously said that the Teamsters “intentionally misled the public” and have “threatened, intimidated and attempted to coerce” employees to join them.
Analysts say that Amazon is unlikely to bargain with the Teamsters as that would likely open the door to more union actions.
Amazon currently employs more than 1.5 million people globally and has said it prefers direct relationships with its workers.
To date, Amazon has responded to the union actions with lawsuits and legal challenges.
Earlier in 2024, Amazon announced a $2.1 billion U.S. investment to raise pay for fulfillment and transportation employees in the U.S., increasing base wages by 7% to $22 U.S. per hour.
The stock of Amazon has risen 47% this year and currently trades at $220.52 U.S. per share.