Will Amazon's Union Crackdown Backfire? Judge Rules Against Labor Practices

Amazon.Com Inc AMZN has been found guilty by an NLRB judge of violating federal labor laws at its JFK8 warehouse in New York between May and October 2021. 

This ruling comes amidst heightened union activities, including the historic April 2022 vote where JFK8 employees joined the Amazon Labor Union (ALU), marking Amazon's first unionized facility in the U.S. 

Judge Lauren Esposito determined Amazon illegally interfered with union activities, including confiscating organizing materials, surveilling employees, and retaliating against pro-union employees, CNBC reports.

For instance, employee Daequan Smith faced dismissal in November 2021, likely due to his union support.

The judge also found that Amazon's hired "union avoidance" consultant, Bradley Moss, illegally threatened employees, stating that unionization efforts would be futile. 

Amazon spent $14 million on such consultants in 2022. The company must post worker rights notices at JFK8 and DYY6 facilities and compensate Smith for lost earnings and benefits.

Moss's racially disparaging remarks about union organizers, likening them to "thugs" and downplaying another union campaign at Amazon's Bessemer, Alabama, facility as a "Black Lives Matter protest," were also noted in the judgment.

Despite the ruling, Amazon spokesperson Eileen Hards expressed disagreement with certain aspects, particularly the reinstatement of the terminated employee. 

Amazon continues to face scrutiny over its labor practices, with 240 open or settled unfair labor practice charges in 26 states, and continues to challenge the JFK8 unionization results.

Despite the company's efforts to improve worker pay and conditions, unionization efforts continue, highlighting ongoing tensions.

Also Read: Labor Board Accuses Apple Of Anti-Union Practices: Report

Price Action: AMZN shares traded lower by 0.56% at $146.21 premarket on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.