What happens next after Amazon workers voted to join a union?

• For the first time at one of its U.S. facilities, Amazon workers at a Staten Island warehouse have voted to unionize.
• The Amazon Labor Union, a recently formed organization, must now begin working to negotiate a collective bargaining agreement with Amazon.
• Amazon needs to reevaluate its labor relations strategy, according to Tom Kochan, a professor at the MIT Sloan School of Management.

A group of workers on Staten Island in New York have made history by being the first to vote in favor of unionizing at a U.S. facility owned by the largest e-commerce company in the country.

Despite Amazon's efforts to prevent unionization, the vote at the Staten Island warehouse, JFK8, resulted in a major defeat for the company, with 2,654 votes in favor of joining the union and 2,131 opposed, and 67 ballots being challenged.

Change may not happen overnight at the fulfillment center, but the wheels are turning towards unionization.

Here’s what happens next:

Delays, challenges and negotiations

The Amazon Labor Union, which was established last year through a crowdfunding campaign, is now responsible for negotiating a collective bargaining agreement on behalf of approximately 6,000 employees at Amazon's largest fulfillment center in New York.

Christian Smalls, a former JFK8 manager, was fired by Amazon in 2020 for violating social distancing rules.

Amazon will now have to negotiate pay, benefits, and working conditions with union leadership for its JFK8 facility.

Amazon and the ALU may commence contract negotiations soon, but it's uncertain if they will reach an agreement.

According to David Rosenfeld, a labor lawyer at Weinberg, Roger and Rosenfeld, and a lecturer at the University California at Berkeley School of Law, Amazon will delay taking action on a union contract. Rosenfeld stated that Amazon is not willing to do the right thing because it could encourage organizing in other places. Instead, they will take every possible step to avoid a contract, and the resulting fight will be long and bitter.

On average, it takes 409 days for CBAs to be signed between employers and their newly unionized workers, according to a June analysis published by Bloomberg Law.

Amazon has the ability to hire top lawyers and consultants due to its unlimited resources. The company has expressed its dissatisfaction with the outcome and is considering its options, including filing objections based on the inappropriate and undue influence of the National Labor Relations Board. Although Amazon did not provide specific examples of improper interference, the National Retail Federation and Chamber of Commerce observed the same behavior.

The NLRB regional office will investigate any objections filed by either Amazon or the union over conduct during the election by April 8. If there is sufficient evidence, a hearing will be scheduled where each side can present its case.

The NLRB board in Washington can hear escalated complaints from either side if they are dissatisfied with the regional director's decision.

Why wait?

Amazon's main priority is precedent, with JFK8 being one of over 100 fulfillment centers in the U.S. Despite this, there are numerous truckers and delivery drivers who are not part of these facilities. In Bessemer, Alabama, workers recently held a second vote on unionizing, which saw a closer count than the first vote last year, although the effort ultimately failed.

Amazon is not interested in the movement gaining more traction and the company believes it is unnecessary. The starting pay at Amazon's fulfillment center is $18 per hour, which is above the minimum wage in every U.S. state. Additionally, Amazon provides health insurance, paid parental leave, and educational opportunities.

Many workers have been attracted to that type of package, especially in areas where traditional industries have declined and well-paying blue-collar jobs are hard to find. However, Amazon's warehouse model is not focused on retention. According to a report in The New York Times last year, the company has adopted a strategy that involves high employee turnover.

If employees are unhappy, they can walk out the door. Adding a union to the mix changes that dynamic completely, because employees get bargaining power and a seat at the table.

Anastasia Christman, a senior policy analyst at the National Employment Law Project in New York, stated that Amazon has the chance to accept that reality.

Christman stated that workers have the option to either continue fighting negatively or allow workers to voice their concerns about workforce issues.

The labor movement is gaining support as public pressure increases, despite the limited enforcement mechanisms facing Amazon.

In late March, contractors in Kansas City, Missouri, became the first workers with bargaining rights under the Alphabet Workers Union after voting to unionize.

On Friday, Vermont Sen. Bernie Sanders expressed his congratulations and stated that the Amazon vote would give a boost to the country's labor movement.

Over the past 29 years, Amazon has flourished in the U.S. without unions. However, in recent years, the company has faced criticism from politicians, regulators, and workers for allegedly engaging in anti-competitive behavior, paying low taxes, and mistreating employees.

Professor Tom Kochan of the Massachusetts Institute of Technology's Sloan School of Management suggested that it may be in the company's best interest to cooperate and avoid a prolonged conflict.

Kochan, an expert on work and employment policies, stated that Amazon's first union victory would prompt them to reevaluate their labor relations strategy and engage in good faith negotiations to reach an agreement. If Amazon continues to resist negotiations as they have during the organizing phase, they will only inflame the situation.

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