Amazon's Unionization Would Hit Its Profitability, Morgan Stanley Says

Morgan Stanley analysts saw Amazon.com Inc's AMZN unionization decision driving costs, CNBC reports.
Morgan Stanley analysts saw Amazon's 2023 operating expenses increasing by $203 million on hiking JFK8 employees' hourly wages to $29. It served a tiny fraction of Amazon's annual operating costs, which reached $445 billion in 2021.
Every 1% of Amazon's front-line workforce that unionize would lead to an incremental $150 million of annual [operating expenses], the report cited the analysts.
Also Read: Read How Amazon's 2022 Warehouse Union Election Set It Apart From 2021
Amazon employed 750,000 workers across its U.S. fulfillment and transportation operations.
The Amazon Labor Union called for Amazon to increase hourly wages for all workers to a minimum of $30 an hour. The union also demanded more paid breaks and vacations.
The report noted that Amazon accused the National Labor Relations Board of improperly influencing the vote.
After a hard-fought election, the union will have to negotiate a contract with Amazon.
Price Action: AMZN shares traded higher by 2.03% at $3,337.13 on the last check Monday.
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