Amazon workers strike during holiday season, demanding contract talks

Investing.com -- Workers at seven Amazon.com (NASDAQ:AMZN ) facilities across the U.S. walked off their jobs early Thursday amid the holiday shopping rush, intending to push the retail giant into contract discussions with their union.

The strike, which includes warehouse employees from cities such as New York, Atlanta, and San Francisco, has been labeled as the "largest" against Amazon, according to the International Brotherhood of Teamsters. This union represents approximately 10,000 workers at 10 of Amazon's facilities.

The Teamsters' General President, Sean O'Brien, criticized Amazon late Wednesday, stating that if packages are delayed during the holidays, it's due to Amazon's "insatiable greed." O'Brien emphasized that the union had provided Amazon with a clear Dec. 15 deadline to initiate negotiations.

However, Amazon ignored this deadline, leading to the strike.

Prior to the strike, warehouse workers had voted in favor of authorizing it. In response, Amazon stated that it does not anticipate any significant disruption to its operations. A company spokesperson accused the union of misleading the public and attempting to coerce employees and third-party drivers to join the strike.

The facilities involved in the strike constitute just 1% of Amazon's hourly workforce. Additionally, areas like New York City have several warehouses and smaller delivery depots, which may help Amazon mitigate the impact of the strike. Observers suggested that Amazon might not engage in negotiations as it could encourage more union actions.

The company, which employs over 1.5 million people globally, has expressed preference for direct relationships with its workforce.

Despite the strike, Amazon's shares traded slightly higher in premarket hours, indicating that investors do not foresee a major disruption from the strike.

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

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Source: Investing.com