Before Christmas, in the week leading up to Christmas, workers at four Amazon distribution centers in Southern California have been on strike since December 19th, which is expected to result in delays in shipments. The strike was initiated by the International Brotherhood of Teamsters (IBT), with workers from seven Amazon distribution centers across the United States joining in.
According to a press release from the International Brotherhood of Teamsters, the union announced on the 17th that its members in Palmdale and Industry in Los Angeles County, as well as in Victorville and San Bernardino in San Bernardino County, voted to approve the strike. The strike began at 3 a.m. on the 19th and picket lines may be set up.
One distribution center in Skokie, Illinois, and two in New York City have also gone on strike with the aim of bringing Amazon to the negotiation table to seek better wages, benefits, and working conditions.
The union stated that this is the “largest strike in history against Amazon in the United States,” sparked by the company ignoring the union’s set deadline of December 15th for negotiations. The union claims to represent nearly 10,000 workers at 10 Amazon distribution centers, just a fraction of the 800,000 employees at all Amazon distribution centers.
IBT President Sean M. O’Brien stated in a release, “Greed-driven executives are pushing tens of thousands of hardworking Americans to the breaking point. Amazon is making more money than anyone; they mistreat and abuse workers, falsely claim they are not the lawful employer of nearly half their workforce. This system of exploitation cannot continue.”
Established in 1903, the International Brotherhood of Teamsters represents around 1.3 million workers in the United States, Canada, and Puerto Rico. O’Brien took office as the president in March 2022, pushing for amendments to the union’s bylaws, requiring a simple majority to veto or pass proposals rather than the previous two-thirds vote needed.
According to Reno News, Amazon spokesperson Kelly Nantel stated in a release, “For over a year, IBT has been deliberately misleading the public – claiming to represent ‘thousands of Amazon employees and drivers,’ which they do not. This is yet another false narrative… The fact is IBT actively threatens, intimidates, and tries to force Amazon employees and third-party drivers to join them, which is illegal.”
Nantel added, “Almost everyone you see here is from the outside; they are not Amazon employees or partners… They could not garner enough support from our employees and partners. Introducing outsiders to harass and intimidate our team is inappropriate and dangerous.”
Regarding the impact on Christmas and New Year deliveries, the company stated that they expect the strike not to affect operations but prolonged strikes could delay shipments in some metropolitan areas. Nantel mentioned that the company will set up sites near customers, arrange shipment windows, and collaborate with other major carriers like UPS for deliveries, “We believe in the strength of our network and contingency plans, and will try to minimize operational costs and potential impacts.”
In July 2023, the IBT union secured a victory in negotiations with one of America’s largest parcel delivery services, UPS, securing raises for 340,000 workers. Under a five-year agreement, the minimum hourly wage for existing and part-time employees was raised to $21, with gradual wage increases over the contract period.
O’Brien described it as the “most lucrative contract in labor history,” stating, “We got more money, higher wages than ever before, and significant non-economic gains,” setting a precedent for the entire labor movement.
Though UPS CEO Carol Tomé viewed it as a “win-win-win” agreement for the IBT leadership, employees, and the company, noting it offered leading industry wages and benefits to both full-time and part-time workers, the company lowered revenue targets due to decreased delivery volumes during labor negotiations.
Amazon is now the next target for IBT. The union pointed out that Amazon’s profits soared during and post-COVID pandemic, with a market value exceeding $2.3 trillion, making it the second-largest private employer in the U.S. behind Walmart; in the third quarter of this year, Amazon reported a net income of $15.3 billion.
Amazon handles millions of customer orders every day, but much of it is outsourced, such as delivery through partnerships with over 3,000 delivery service companies. Under current labor laws, outsourced delivery drivers, even if wearing Amazon delivery vests and driving similar trucks, are not considered direct employees. According to CapitalOne Shopping, UPS derived 11.8% of its revenue in 2023 from Amazon delivery services.
In May 2023, IBT filed unfair labor practice charges against Amazon with the National Labor Relations Board (NLRB) Region 31, including illegal threats to workers, refusal to recognize the union as the exclusive bargaining representative, and failure to negotiate with the union. The charges argue that Amazon should be considered the sole or joint employer of over eighty delivery drivers and dispatchers for Battle Tested Strategies, a subcontractor. Amazon maintains that subcontracted driver’s are not their employees and have refused to negotiate with the union.
In August of this year, a federal labor prosecutor classified Amazon as a “joint employer” of subcontracted drivers. In November, Amazon’s lawyers (who also represent Elon Musk’s SpaceX) argued in the New Orleans-based Fifth Circuit Court of Appeals that the NLRB’s decision is unconstitutional. The case could potentially escalate to the Supreme Court. ◇