A large number of Amazon ( (AMZN) employees at the staten Island warehouse in the behemoth voted against joining the union in a surprise move.
Another Staten Island fulfillment center was the first to unionize and founded the Amazon Labor Union, a win for the online retailer.
The employees at the LDJ5 warehouse were approved 618 in opposition to becoming a member of the union, according to officials. The National Labor Relations Board will certify the votes.
Another nearby Amazon warehouse known as JFK8 to employees, purchased the opportunity to participate in the company''s first U.S. union, theAmazon Labor Union (ALU).
According to CNBC, Seth Goldstein, an attorney who served the union on a pro bono basis, said the ALU will challenge the election outcome.
Employees are seeking increased wage and working conditions as the online retailer expands and builds expanded mammoth warehouses to fulfill online orders. They are seeking paid sick leave, paid time off work for injuries, and longer breaks.
According to US Department of Labor filings, workers at theJFK8 Staten Island warehouse decided to form a union in April, a blow to the company that spent $4.3 million in 2021 to pay labor consulting firms to fight efforts to create a union.
Efforts to Unionize Will Continue
The Amazon Labor Union has agreed to increase wages to a minimum of $30 an hour for theLDJ5 employees. Amazon has stated that the average hourly wage is $18 an hour at its fulfillment centers in the United States, but it also wants longer breaks and other benefits.
According to activists, Amazon forced employees to participate in anti-union meetings at the LDJ5 facility. They paid a Democratic pollster, according to the Global Strategy Group, which was extremely important.
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Christian Smalls, who was named the face of the Amazon Labor Union and has served as the country''s president, responded to today''s loss on Twitter. He stated that the people who led the unionization efforts should be pleased with their work.
"Despite today''s outcome Im proud of the LDJ5 employees and managers. After their victory at JFK8, our leads should be extremely proud to have given their coworkers a right to join a Union.Nothing changes we organize! don''t be discouraged or sad be upset and talk to your coworkers will continue to organize and so should all of you."
He said there were still 28,300 employees to "succeed at getting a contract for a lot of work."
When Smalls staged the demonstration, Amazon sought retaliation. He said there should be better safety measures.
TheLDJ5 warehouse is mostly owned by part-time employees, similar to theJFK8 facility, which employs around 6,000 people and is the largest Amazon fulfillment facility in New York.
Workers in many industries across the United States have begun unionizing and working together to improve working conditions and higher salaries as inflation has increased and eroded the take-home pay of those who have faced higher rental payments, food, energy bills, and gasoline costs.
The tight labor market is putting pressure on unionization, and workers have resigned and changed their positions in the past two years.
Amazon''s stock is recovering from a nearly $4 billion loss.
The online retailer''s first quarter earnings last week was a disappointment, sending shares down. Amazon reported a $3.8 billion first quarter loss, bringing Wall Street back to a good start.
Amazon''s stock had fallen back in the red on Monday, owing to its highest one-day decline since 2006. Despite the company''s first revenue of 7% to $116.30 billion in the year, the company has reported the most modest increase in over a decade, with its total operating expenses estimated to be $112.78 million.
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