Staten Island showdown: NLRB orders Amazon to bargain with union

Grass roots union, now aligned with the Teamsters, won election in 2022

The NLRB has ordered Amazon to bargain with a New York City union. (Photo: Amazon)

Amazon has been ordered by the National Labor Relations Board to recognize and bargain with the union at a warehouse on Staten Island, New York.

The union there was originally known as the Amazon Labor Union, owing to the fact that when it was elected by the warehouse rank-and-file to represent it in April 2022, it was a standalone union not tied to any larger organization. It has since aligned with the Teamsters.

But Amazon has steadfastly refused to bargain with the union, leading to the workers bringing a complaint before the NLRB. 

The vote at the agency is notable because it comes from a board that for many months had no quorum to do anything. But it has since reached the minimum level of three members, yet still sided with the union despite it being a 2-1 Republican-dominated board.

The NLRB’s document and recap of the events since the union was elected in 2022 note that the board’s General Counsel and regional directors have consistently handed down dictums that Amazon be required to bargain with the union.

“(Amazon) denies that it has unlawfully refused to bargain,” the NLRB said in its document handing down the order against the company. “Rather, it asserts that it has no duty to bargain

and contests the validity of the certification of representative based on its contention that the union is not the exclusive collective-bargaining representative of any employee at its Fulfillment Center located on Staten Island.” 

That warehouse is known as JFK8. Staten Island is one of the five boroughs of New York City.

Union said Amazon wouldn’t bargain

In a recap of the back-and-forth between the NLRB and Amazon following the vote, the NLRB said the agency’s regional director for the New York area in January 2023 certified the union as “exclusive bargaining representative” for the workers at JFK8. Two weeks later, according to the document, the union filed a charge with the agency that Amazon was refusing to bargain. 

“That same day, the (NLRB) Region contacted (Amazon’s) counsel and asked whether (it) was testing certification by refusing to bargain with the union,” the NLRB said in its recap. “(Amazon’s) counsel confirmed that it was ‘testing certification, and intend[ed] to file a request for review’ of the Regional Director’s Decision and Certification of Representative.”

According to the NLRB, the union requested Amazon to begin bargaining on April 2, 2022. But since that date, the NLRB said, Amazon “has failed and refused to recognize and bargain with the Union as the exclusive collective-bargaining representative of the unit.”’ 

“We find that (Amazon’s) conduct constitutes an unlawful failure and refusal to recognize and bargain with the union,” the NLRB said.

The agency ordered Amazon to “cease and desist” from failing to recognize the union, and to begin bargaining with the union “as the exclusive collective-bargaining representative of the employees.”

Amazon will challenge

In a prepared statement, Amazon (NASDAQ: AMZN) said the NLRB certification of the election back in March 2022 “is wrong on the facts and the law, and the truth is that both the (Amazon Labor Union) and representatives of the NLRB improperly influenced this election.”

“This decision is just part of the process of challenging the underlying certification,” the statement continued. “We’re confident an unbiased court will overturn the original certification, and we look forward to the opportunity for our team to fairly voice their opinions.”

As of publication time, the Teamsters had not released a statement about the NLRB decision. 

They aren’t related, but the NLRB decision came one day after news of an agreement between Amazon and the Teamsters regarding financial penalties the company levies against workers who walk off the job as part of a unionization drive.

Spotty history of union success

The only other employees in the Amazon empire who have voted to unionize are at a Whole Foods outlet in Philadelphia. A closely-watched vote at an Amazon facility in Bessemer, Alabama failed in 2021. 

Workers at Direct Service Providers (DSPs) who deliver packages are employed by the owners of the DSPs, though the Teamsters refers to them as “Amazon Teamsters.” 

Some of the workers at DSPs have used the signing of authorization cards–also known as “card check”–to claim a unionization victory. But only one DSP recognized a union victory, Battle Tested Strategies in California, and it found itself out as a DSP soon after. (Amazon has said its dismissal was not related to the unionization vote and recognition. That dispute is now before the NLRB).  

Since unionization efforts started among various Amazon or Amazon-related employees, the company has touted its pay levels and benefits. It says its average base wage is $23 per hour and total compensation package with benefits averages $30 per hour. It says it has reduced health care premiums and copays, and health care benefits begin on the first day of employment.

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John Kingston

John has an almost 40-year career covering commodities, most of the time at S&P Global Platts. He created the Dated Brent benchmark, now the world’s most important crude oil marker. He was Director of Oil, Director of News, the editor in chief of Platts Oilgram News and the “talking head” for Platts on numerous media outlets, including CNBC, Fox Business and Canada’s BNN. He covered metals before joining Platts and then spent a year running Platts’ metals business as well. He was awarded the International Association of Energy Economics Award for Excellence in Written Journalism in 2015. In 2010, he won two Corporate Achievement Awards from McGraw-Hill, an extremely rare accomplishment, one for steering coverage of the BP Deepwater Horizon disaster and the other for the launch of a public affairs television show, Platts Energy Week.