Morgan Stanley analysts saw Amazon.com Inc’s unionization decision driving costs, CNBC reports.
Morgan Stanley analysts saw Amazon’s 2023 operating expenses increasing by $203 million on hiking JFK8 employees’ hourly wages to $29. It served a tiny fraction of Amazon’s annual operating costs, which reached $445 billion in 2021.
Every 1 percent of Amazon’s front-line workforce that unionize would lead to an incremental $150 million of annual [operating expenses], the report cited the analysts.
Amazon employed 750,000 workers across its U.S. fulfillment and transportation operations.
The Amazon Labor Union called for Amazon to increase hourly wages for all workers to a minimum of $30 an hour. The union also demanded more paid breaks and vacations.
The report noted that Amazon accused the National Labor Relations Board of improperly influencing the vote.
After a hard-fought election, the union will have to negotiate a contract with Amazon.
