State of the union

State of the union

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A week after Chris Smalls secured a landmark decision to form Amazon's (AMZN) first union at its Staten Island warehouse, Bezos and crew have pushed back. Amazon has decided to challenge the vote by claiming that the New York union organizers handed out marijuana to workers in a bid to secure unionization votes. The objection was one of several made by the e-commerce giant Friday as it seeks to overturn a vote that created the first union in the company's history. In the reports of the filing, Amazon's lawyers state that the Amazon Labour Union (ALU) secured votes by handing out cannabis to voters and as such, they cannot condone the ALU acquiring votes in such a manner. 

Elsewhere, Starbucks (SBUX) also has its hands full with unions, with 16 out of 17 cafes that voted for unionization now voting "yes." Since its first union victory in Buffalo in 2021, the organizing campaign has now spread to over 170 Starbucks stores nationwide. CEO Howard Shulz has come out and hit back against the unions, stating that companies are being ‘assaulted’ by unions. It comes as a wave of collective bargaining amongst workers has spread across the US.

Why it matters

Starbucks (SBUX) has seen its shares take a tumble after Shulz halted a buyback scheme and as the company battles on multiple fronts to deal with growing union noise. While Amazon also took a slight tumble amidst ongoing labor relation issues. 

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