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'Lighting a fuse': Amazon vote may spark more union pushes – Business News – Castanet.net

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What happens inside a warehouse in Bessemer, Alabama, could have major implications not just for the country’s second-largest employer but the labour movement at large.

Organizers are pushing for some 6,000 Amazon workers there to join the Retail, Wholesale and Department Store Union on the promise it will lead to better working conditions, better pay and more respect. Amazon is pushing back, arguing that it already offers more than twice the minimum wage in Alabama and workers get such benefits as health care, vision and dental insurance without paying union dues.

The two sides are fully aware that it’s not just the Bessemer warehouse on the line. Organizers hope what happens there will inspire thousands of workers nationwide — and not just at Amazon — to consider unionizing and revive a labour movement that has been waning for decades.

“This is lighting a fuse, which I believe is going to spark an explosion of union organizing across the country, regardless of the results,” says RWDSU president Stuart Appelbaum.

The union push could spread to other parts of Amazon and threaten the company’s profits, which soared 84% last year to $21 billion. At a time when many companies were cutting jobs, Amazon was one of the few still hiring, bringing on board 500,000 people last year alone to keep up with a surge of online orders.

Bessemer workers finished casting their votes on Monday. The counting begins on Tuesday, which could take days or longer depending on how many votes are received and how much time it takes for each side to review. The process is being overseen by the National Labor Relations Board and a majority of the votes will decide the final outcome.

What that outcome will be is anyone’s guess. Appelbaum thinks workers who voted early likely rejected the union because Amazon’s messaging got to them first. He says momentum changed in March as organizers talked to more workers and heard from basketball players and high-profile elected officials, including President Joe Biden.

For Amazon, which employs more than 950,000 full- and part-time workers in the U.S. and nearly 1.3 million worldwide, a union could lead to higher wages that would eat into its profits. Higher wages would also mean higher costs to get packages to shoppers’ doorsteps, which may prompt Amazon to raise prices, says Erik Gordon, a professor at the University of Michigan’s Ross School of Business.

In a statement, Amazon says it encouraged all its employees to vote and that “their voices will be heard in the days ahead.”

Any push to unionize is considered a long shot, since labour laws tend to favour employers. Alabama itself is a “right-to-work” state, which allows workers in unionized shops to opt out of paying union dues even as they retain the benefits and job protection negotiated by the union.

Kent Wong, the director of the UCLA Labor Center, says companies in the past have closed stores, warehouses or plants after workers have voted to unionize.

“There’s a history of companies going to great lengths to avoid recognizing the union,” he says.

Walmart, the nation’s largest retailer and biggest private employer, has successfully fought off organizing efforts over the years. In 2000, it got rid of butchers in 180 of its stores after they voted to form a union. Walmart said it cut the jobs because people preferred pre-packaged meat. Five years later, it closed a store in Canada where some 200 workers were close to winning a union contract. At the time, Walmart said demands from union negotiators made it impossible for the store to sustain itself.

The only other time Amazon came up against a union vote was in 2014, when the majority of the 30 workers at a Delaware warehouse turned it down.

This time around, Amazon has been hanging anti-union signs throughout the Bessemer warehouse, including inside bathroom stalls, and holding mandatory meetings to convince workers why the union is a bad idea, according to one worker who recently testified at a Senate hearing. It has also created a website for employees that tells them they’ll have to pay $500 in union dues a month, taking away money that could go to dinners and school supplies.

Amazon’s hardball tactics extend beyond squashing union efforts. Last year, it fired a worker who organized a walkout at a New York warehouse to demand greater protection against coronavirus, saying the employee himself flouted distancing rules. When Seattle, the home of its headquarters, passed a new tax on big companies in 2018, Amazon protested by stopping construction of a new high-rise building in the city; the tax was repealed four weeks later. And in 2019, Amazon ditched plans to build a $2.5 billion headquarters for 25,000 workers in New York after pushback from progressive politicians and unions.

Beyond Amazon is an anti-union culture that dominates the South. And unions have lost ground nationally for decades since their peak in the decades following World War II. In 1970, almost a third of the U.S. workforce belonged to a union. In 2020, that figure was 10.8%, according to the U.S. Bureau of Labor Statistics. Private sector workers now account for less than half of the 14.3 million union members across the country.

Advocates say a victory would signal a shift in the narrative about unions, helping refute the typical arguments from companies, including Amazon, that workers can win adequate compensation and conditions by dealing with management directly.

“It is because of unions that we have a five-day work week. It is because of unions that we have safer conditions in our places of work. It is because of unions that we have benefits,” says Rep. Terri Sewell, whose congressional district includes the Amazon facility. “Workers should have the right to choose whether they organize or not.”

Union leaders are circumspect about specific organizing plans after the Bessemer vote, and Appelbaum says he doesn’t want to tip off Amazon to any future efforts. But there is broad consensus that a win would spur workers at some of the 230 other Amazon warehouses to mount a similar union campaign.

It’s less clear whether any ripple effects would reach other prime targets like Walmart and the expansive auto industry that has burgeoned across the South in recent decades. Both have largely succeeded at keeping unions at bay.

The auto workers union has had some of the largest union pushes of the last decade, but their most intense and publicized efforts ended in failure. In 2017, a years-long campaign to unionize a Nissan plant in Canton, Mississippi, ended with a decisive 2,244-1,307 rejection of the union — the kind of margin that would be devastating in Bessemer. Two years later, however, Volkswagen workers in Tennessee had a much more evenly split vote, with 776 workers supporting unionization and 833 voting against it.

Besides the number of Amazon workers involved, the Alabama campaign has stood out because of how explicitly many advocates have linked the effort to the civil rights movement of the 20th century. The RWDSU estimates that more than 80% of the warehouse workers in Bessemer are Black.

Robert Korstad, a Duke Emeritus professor and labour history expert, says those dynamics could help in Bessemer.

“The history of the Black struggle in Alabama is pretty deeply entrenched in the social, political and religious institutions there,” he says. “We’re starting to see people rise up again. So this Amazon struggle is part of a larger struggle that’s gone on a long time.”

The question, Korstad says, is whether a win in Bessemer truly becomes a “ripple effect” that inspires workers across racial and ethnic lines elsewhere.

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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