Amazon Nears First Ever Union as Historic Votes Are Counted

AMZN Stock - Amazon Nears First Ever Union as Historic Votes Are Counted

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Amazon (NASDAQ:AMZN) warehouse workers in Staten Island, New York have cast their votes for unionization at a distribution center, and ballots are being counted. As a result, Amazon could soon have its first union in the e-commerce giant’s history. Should the unionization efforts prove successful, AMZN stock might face downward pressure. 

Early indications are that the unionization efforts are paying off in the company’s Staten Island warehouse. There is no official result yet, but preliminary results suggest that the ballot has a strong chance to pass. And if it does after vote tallying resumes on Friday, it will be a historic moment for Amazon and unions.

As both sides await the results of the Staten Island vote to unionize, there is also news from Bessemer, Alabama, which houses another Amazon warehouse. A year earlier, a drive to unionize at the warehouse was roundly defeated. That vote came under some scrutiny, though, with sources alleging that Amazon’s anti-union resources had interfered. In fact, a federal agency later ruled that Amazon had indeed illegally interfered with the process. 

Nonetheless, that led to a revote, which coincided with the Staten Island vote. The Bessemer, Alabama Amazon union vote results are already in with 993 votes against unionizing and 875 votes in favor. But, similar to the situation a year ago, this revote was marked by controversy, with hundreds of votes having been challenged. Thus, that means the official ballot count has yet to be decided in the Bessemer, Alabama warehouse unionization efforts. 

Of course, there are obvious differences between the two unionization efforts. Alabama is a more anti-union state than New York. That said, given that the results in Alabama are close, that suggests the Staten Island efforts could very likely pass.   

Furthermore, it should be noted that Amazon isn’t the only large corporation dealing with union pressure at the moment. Earlier in March, Starbucks (NASDAQ:SBUX) workers continued to unionize with three locations in Buffalo deciding to unionize. In turn, SBUX stock slipped in the days following the news in Buffalo.

While I am not saying this is what will happen with AMZN stock, anything is possible. However, as this study concluded, stock price crash risk reduces significantly following unionization. Therefore, if this goes through, investors should keep an eye on AMZN stock.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.


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