The Amazon Case: The Return of Unions?

Shortly after the union victory that shocked labor organizers and observers across the nation, Chris Smalls, who helped coordinate the triumphant campaign against Amazon in Staten Island, New York, declared:

“The revolution is here.”

The union is a first for Amazon. Most experts thought it was impossible, especially since Smalls had no union experience and did not use the financial and legal resources of established unions. He truly beat the odds. A real-life David versus Goliath.  

Now, organizers from more than 50 Amazon warehouses have contacted Smalls, expressing interest in setting up their unions.    

Does this stunning win portend a comeback for organized labor?  

Let’s examine the facts. 

Union membership declining

In 2021, the U.S. Bureau of Labor Statistics reported the share of union members among all employees dropped to a record low of 10.3%, down from 10.8% in 2020.  That’s a decline of nearly a quarter-million workers to approximately 14.0 million. In 1983, the union rate was twice its current size and included 4 million more members – 18 million overall.         

For public sector employees, the union rate is substantially higher at 33.9% -- approximately five times higher than the private sector rate.  Union membership is highest for local government at 40.2%, which employs people in typically unionized occupations such as teachers, firefighters, and police officers.    

The private sector union rate stands at 6.1%, slightly lower than 2020 but down considerably from 17% in 1983 and 36% in 1953 (Bureau of Labor Statistics). The highest private sector rates include utilities (19.7%), the motion picture industry (17.3%), and transportation and warehousing (14.7%). The lowest rates occur in insurance (1.5%), finance (1.2%), and food services (1.2%)   

Top 3 private sector union membership

Among the states, New York ranks second at 22.2%, more than double the U.S. average. Nearly 2 million of the 14.0 million union members live in New York.  About 1 in 5 New Yorkers are therefore union members, which means most New Yorkers know a union member or have worked in a union setting.      

An unusual effort

Typically, union organizers seek the help of established unions. They leverage the resources and knowledge of well-known unions to enhance their efforts. The partnerships are crucial especially when confronting large companies like Amazon that spend millions on anti-union tactics.   

However, Smalls and his co-worker Derrick Palmer plotted a different course.  Mindful of the recent failure at the Amazon warehouse in Bessemer, Alabama, they founded the independent Amazon Labor Union (ALU).   Raising $120,000 through a GoFundMe page, they organized workers using unconventional methods and filed quickly for an election with only the legal minimum of eligible workers – 30%. 

Without the help of a recognized union, and without experienced organizers, the ALU prevailed.  By avoiding established unions, Smalls and Palmer effectively neutralized a lingering mistrust of unions among fellow workers.  Employees felt they were choosing between Amazon and a group of energized co-workers and friends.  It was not a decision between Amazon and a distant, bureaucratic, and often unaccountable third-party union.  The approach, the so-called worker-to-worker model, made the difference.     

Pandemic effects 

The pandemic boosted demand for warehouse workers. And while many employees across the nation were able to work remotely, Amazon warehouse workers risked exposure every day. They endured notable stresses related to a burgeoning workload, including longer shifts, time-task metrics, and mandatory overtime. Yet their concerns were ignored, which created additional agitation and a ripe context for union organization.  Indeed, they had been labeled “essential” but were treated as if they were disposable.   

Bottom line 

New York is a strong labor state. And unions are relatively successful in the transportation and warehousing industry. Relative to other places – and other industries, a breakthrough at the New York Amazon warehouse seems probable.   

Yet one win does not signify a trend. The victory is merely a toehold… and a precarious one.

Amazon fulfillment warehouses are located across the nation including 27 right to work states, which guarantee that workers cannot be forced as a condition of employment to join or pay dues to a labor union. This of course makes collective bargaining efforts more difficult.   

In addition, the worst of the pandemic is over. This removes an important and novel contributor to worker angst and dissatisfaction. Union organizers must now turn to conventional concerns to help unify workers.  

Finally, the Amazon Labor Union is narrowly tailored to New York labor and the Amazon warehouse. Its architects are two workers that have no union experience and little knowledge of union politics and practices. So far, they have only discussed assistance from larger unions like the Teamsters. It thus appears unlikely that ALU could scale and trigger a larger movement across the nation.      

To be sure, ALU’s victory is a great story – a genuine David beats Goliath. But the story has just begun. Goliath is not dead.    

Recall, that roughly 8,000 Staten Island workers were eligible to vote, yet only 4,785 voted – 2,654 for the union to 2,131 against. The union hoped for a much larger turnout and a greater margin of victory. The modest numbers could foreshadow problems going forward.     

For example, the union must still forge an agreement with Amazon and sign a contract. Then, union members must vote on that contract. The process will be lengthy. Amazon will find ways to stall. Some 30% of unions are never able to establish a contact within 3 years. In the process, unions can lose momentum; workers lose faith, and they can turn on the union and blame it for their problems.   

It’s a long and winding road with significant headwinds when it comes to Amazon unionizing.  

As one headline acknowledged, Congrats!  You formed a union.  Now comes the hard part.

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