Amazon faces high-stakes Alabama union vote after 'radically different' campaign

In This Article:

Vote tallying began on Monday in a historic union election at an Amazon (AMZN) warehouse in Bessemer, Alabama, where a labor victory among more than 5,000 workers could upend the business model at the e-commerce giant and intensify a surge of organizing underway at major companies like Starbucks (SBUX) and Disney (DIS).

The election arrives roughly one year after the overwhelming defeat of an initial union drive led by the Retail, Wholesale and Department Store Union (RWDSU) at the Bessemer facility — a result that was later nullified by a ruling that Amazon had illegally interfered with the labor campaign.

Alongside the revote in Bessemer, warehouse workers at a 6,000-person facility on Staten Island are casting their ballots in a union election that ends on Wednesday.

Both elections could deliver results by the end of the week, with victories dealing a sudden and significant blow to Amazon, which has opposed the labor campaigns at both facilities. But twin union defeats could tarnish the perception of organizing at the company nationwide, discouraging workers beyond Amazon and affirming the company's previous contention that criticism of the work environment at its warehouses is overblown.

RWDSU President Stuart Appelbaum, as well as pro-union Amazon workers, told Yahoo Finance that a different strategy and a new set of grievances have energized the campaign, feeding optimism that the union will prevail in the second election at the plant.

Labor experts acknowledged the significance of a potential victory at the nation’s second-largest employer, especially among a predominantly Black segment of its workforce at a facility in the labor-unfriendly South.

Moreover, the election at Amazon coincides with a nationwide wave of organizing as emboldened workers draw leverage from a tight labor market. Starbucks workers in recent months have unionized eight stores, with more likely to come as over 100 stores across more than 25 states have filed for union elections; and employees at Disney captured attention last week with a walkout to protest the company's posture toward a controversial Florida law.

But the experts cautioned that the bottomless resources and anti-union messaging of a corporate giant like Amazon make the organizing drive a difficult feat.

The election is “symbolic because Amazon is sort of looked at as the wave of the future in terms of the business world, the globalized economy, and the high-tech economy,” says Paul Clark, a labor relations professor at Pennsylvania State University. “There was a great disappointment when the first vote was not even close, so this would be a big deal.”