Amazon.com Inc. AMZN spent over $3 million in 2023 on consultants to discourage unionization among its delivery network employees.
What Happened: The e-commerce giant, headquartered in Seattle, has been actively hiring “persuaders” to dissuade workers from forming unions. The company’s total spending on such consultants in 2023 exceeded $3.1 million, according to its filings with the Labor Department.
Amazon, which has become the largest warehouse employer in the U.S., is facing unionization efforts from various labor groups.
Mary Kate Paradis, an Amazon spokesperson, told HuffPost that the company is “proud to invest tens of billions of dollars in things like free college tuition, healthcare, good pay, and safety programs.”
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She added, “We also know that there are outside organizations working hard and spending heavily to spread inaccurate information about us to our teams. So ― like many other companies ― we also work to ensure our employees are fully informed about their rights and how decisions about outside representation could impact their day-to-day lives working at Amazon.”
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Amazon’s anti-union spending is notably down when compared to the previous two years – according to its official Labor Department filings, the company spent $14.2 million in 2022 and $4.3 million in 2021.
Two consultants reaped the most from Amazon's anti-unionization efforts in 2023 – Michigan-based Penne Familusi's Rayla Group received $1.33 million, while Massachusetts-based Katherine G Lev's Lev Labor received $1.05 million.
Why It Matters: Amazon’s anti-union activities have been a subject of controversy.
In 2023, the company was found guilty by a National Labor Relations Board (NLRB) judge of violating federal labor laws at its JFK8 warehouse in New York. The judge ruled that Amazon had unlawfully interrogated and threatened employees who were involved in union activities.
Despite this, Amazon continues to resist unionization efforts within its workforce.
Price Action: Amazon shares closed 0.31% up at $180.38 on Friday, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Joe Piette on Flickr
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