Amazon (AMZN) warehouse employees in North Carolina have soundly rejected plans to unionize in a vote over the weekend. The National Labor Relations Board reported 3,276 votes against the warehouse workers joining the Carolina Amazonians United for Solidarity and Empowerment (CAUSE) union. That’s a major upset as only 829 of the facilities’ workers voted in favor of the change.
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Amazon celebrated the ballot results with a spokesperson saying the company is “glad that our team in Garner was able to have their voices heard” and that it will continue to “make this a great place to work together.”
CAUSE sang a different tune about the union vote, claiming Amazon took part in illegal activities to keep workers from voting in favor of unionization. A statement from it claims “Amazon may think it is above the law, but we will not accept a system that allows billionaires and corporations to play by a different set of rules.”
What This Union Vote Means for Amazon
Amazon warehouse employees voting against joining a union could discourage future unionization efforts. As it is, only two groups of AMZN workers have succeeded in unionizing. That includes a Staten Island warehouse in 2022 and the recent unionization of a Whole Foods location in Philadelphia.
It’s worth noting that Amazon might not appeal to unions, even if workers vote in favor of them. That’s been the case with the Staten Island workers as the union there has failed to engage Amazon in negotiations. This is despite growing pressure from Teamsters to reach contracts with Amazon on behalf of its employees in the U.S.
Is AMZN Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Amazon is Strong Buy based on 47 Buy and one Hold ratings over the past three months. With that comes an average price target of $268.91, a high of $306, and a low of $207. This represents a potential 17.59% upside for AMZN stock.
