Home Money & Business Business Workers at Amazon and Starbucks are striking, and Trump could play a role in it.

Workers at Amazon and Starbucks are striking, and Trump could play a role in it.

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Amazon delivery personnel and Starbucks employees are staging strikes in several U.S. cities as they push for recognition as union members or demand progress on their first labor contracts. These protests began on Thursday and Friday, escalating a series of confrontations between corporate entities and organized labor. Noteworthy labor unions had achieved significant employer concessions this year, thanks to strikes led by Boeing workers, dockworkers at East and Gulf Coast ports, as well as other workers, including video game performers and those in the Las Vegas hotel and casino industry.

However, employees at Starbucks, Amazon, and a few other major consumer firms are still grappling with the challenge of negotiating their inaugural contracts. Amazon has been resistant to recognizing the unionization attempts of its drivers and warehouse personnel, despite many workers voting for unionization and being represented by the influential Teamsters union. On the other hand, Starbucks initially opposed unionizing efforts but has now committed to negotiating a contract by the conclusion of the year.

The timing of these strikes is particularly significant. Conducting strikes during the holiday season, when economic activity peaks, provides unions with enhanced leverage in negotiations and fosters solidarity among workers and supportive consumers. Following the COVID-19 pandemic, awareness around the struggles facing front-line workers and issues of economic inequality intensified, prompting organizing efforts at businesses where unions are uncommon. Successful campaigns emerged at certain Apple, Trader Joe’s, and REI storefronts, yet transforming these victories into binding contracts remains a hurdle.

Amazon and Starbucks, which were non-unionized pre-pandemic, have yet to settle an agreement with their employees. John Logan, who oversees labor and employment studies at San Francisco State University, expresses concern that workers at these companies are “desperate” for advancements before President-elect Donald Trump appoints a Republican majority to the National Labor Relations Board (NLRB), suggesting such a change would likely be less favorable to unions. He notes that these unions strive to keep their disputes in the public eye to exert political pressure on the corporations involved. If negotiations lag into the following year and rely predominantly on the labor board and judiciary, he believes that unions and workers will ultimately face defeat.

Interestingly, Trump has shown signs of possibly adopting a more labor-friendly stance in his upcoming term compared to his previous one. For instance, he recently appointed Oregon Representative Lori Chavez-DeRemer, who enjoys union support, to lead the Department of Labor. This can signal potential changes in the relationship between labor and the government moving forward.

Regarding the Teamsters, they have organized strikes at seven Amazon delivery stations located in Southern California, San Francisco, New York City, Atlanta, and Skokie, Illinois, as the company neglected to respond to a negotiation deadline set by the union. As of midnight Saturday, the Teamsters will extend their strike actions at a significant New York warehouse affiliated with the Amazon Labor Union, which was formed in 2022.

The Teamsters’ focus lies on securing higher wages, better benefits, and enhanced safety conditions for Amazon workers, most of whom face economic hardships despite the company’s $2.3 trillion valuation. However, the exact number of striking Amazon employees has not been disclosed. The union primarily aims at organizing delivery drivers, which Amazon claims are not its direct employees since they are hired through contractors. This structure provides Amazon with some insulation from unionization efforts, particularly in sectors historically dominated by the Teamsters.

Conversely, Amazon has accused the Teamsters of perpetuating a “false narrative” regarding the group’s representation claims and emphasizes its compensation strategy, which includes a base wage of $22 per hour along with benefits for warehouse and transportation workers. To add to that, they also increased hourly wages for independent delivery operators recently.

In September, the NLRB, which has shifted to a pro-labor stance under President Biden, ruled that certain drivers should be considered joint employees of Amazon and cited the company for allegedly withholding contract negotiations with the Teamsters. The Teamsters union claims to represent numerous Amazon warehouse workers, including those at the New York City fulfillment center who voted in favor of the Amazon Labor Union’s representation.

Amazon disputes the outcome of the 2022 election at the warehouse, claiming that both the Amazon Labor Union and the federal labor board compromised the integrity of the vote. Additionally, a regional NLRB director has accused Amazon of legal violations for refusing to negotiate with the union. In reaction, Amazon is contesting the constitutionality of the NLRB in federal court, similar to SpaceX, owned by Elon Musk. The Supreme Court recently complicated the NLRB’s ability to obtain administrative orders in labor disputes by siding with Starbucks over a related case.

In contrast to Amazon, Starbucks has engaged in ongoing contract negotiations. Nevertheless, Starbucks Workers United reports that the company has not fulfilled its promise made in February to secure a labor agreement within the year. The union is also demanding that Starbucks resolve outstanding legal issues, including numerous unfair labor practice complaints filed with the NLRB.

Strikes initiated on Friday in cities like Chicago, Los Angeles, and Seattle demonstrate workers’ frustration as Workers United criticizes the economic package proposed by Starbucks, which includes no immediate wage raises for unionized baristas. The strike actions have since expanded to locations in Denver, Pittsburgh, and Columbus, Ohio, with plans for further participation from workers in New Jersey, New York, Philadelphia, and St. Louis. Labor leaders have indicated that dozens of Starbucks outlets have been affected by the ongoing strikes.

Starbucks has responded by asserting that Workers United prematurely terminated a bargaining session and claims that it already provides a comprehensive pay and benefits structure, amounting to $30 per hour for baristas working a minimum of 20 hours weekly. Starbucks workers have previously walked off the job on two occasions last year, and Workers United has warned that these strikes could potentially escalate to hundreds of stores nationwide ahead of Christmas.

Patricia Campos-Medina, a recent Democratic candidate for the U.S. Senate in New Jersey and director at Cornell University’s Worker Institute, predicts a surge of union activities before the inauguration of Trump. She emphasizes that Trump’s forthcoming responses will allow the public to gauge his commitment to working-class interests.