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    Amazon Reaches Labor Deal, Giving Workers More Power to Organize

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    The agreement’s national scope and its concessions to organizing go further than any previous settlement that the e-commerce giant has made.SEATTLE — Amazon, which faces mounting scrutiny over worker rights, agreed to let its warehouse employees more easily organize in the workplace as part of a nationwide settlement with the National Labor Relations Board this month.Under the settlement, made final on Wednesday, Amazon said it would email past and current warehouse workers — likely more than one million people — with notifications of their rights and give them greater flexibility to organize in its buildings. The agreement also makes it easier and faster for the N.L.R.B., which investigates claims of unfair labor practices, to sue Amazon if it believes the company violated the terms.Amazon has previously settled individual cases with the labor agency, but the new settlement’s national scope and its concessions to organizing go further than any previous agreement.Because of Amazon’s sheer size — more than 750,000 people work in its operations in the United States alone — the agency said the settlement would reach one of the largest groups of workers in its history. The tech giant also agreed to terms that would let the N.L.R.B. bypass an administrative hearing process, a lengthy and cumbersome undertaking, if the agency found that the company had not abided by the settlement.The agreement stemmed from six cases of Amazon workers who said the company limited their ability to organize colleagues. A copy was obtained by The New York Times.It is a “big deal given the magnitude of the size of Amazon,” said Wilma B. Liebman, who was the chair of the N.L.R.B. under President Barack Obama.Amazon, which has been on a hiring frenzy in the pandemic and is the nation’s second-largest private employer after Walmart, has faced increased labor pressure as its work force has soared to nearly 1.5 million globally. The company has become a leading example of a rising tide of worker organizing as the pandemic reshapes what employees expect from their employers.This year, Amazon has grappled with organizing efforts at warehouses in Alabama and New York, and the International Brotherhood of Teamsters formally committed to support organizing at the company. Other companies, such as Starbucks, Kellogg and Deere & Company, have faced rising union activity as well.Compounding the problem, Amazon is struggling to find enough employees to satiate its growth. The company was built on a model of high-turnover employment, which has now crashed into a phenomenon known as the Great Resignation, with workers in many industries quitting their jobs in search of a better deal for themselves.Amazon has responded by raising wages and pledging to improve its workplace. It has said it would spend $4 billion to deal with labor shortages this quarter alone.“This settlement agreement provides a crucial commitment from Amazon to millions of its workers across the United States that it will not interfere with their right to act collectively to improve their workplace by forming a union or taking other collective action,” Jennifer Abruzzo, the N.L.R.B.’s new general counsel appointed by President Biden, said in a statement on Thursday.Amazon declined to comment. The company has said it supports workers’ rights to organize but believes employees are better served without a union.Amazon and the labor agency have been in growing contact, and at times conflict. More than 75 cases alleging unfair labor practices have been brought against Amazon since the start of the pandemic, according to the N.L.R.B.’s database. Ms. Abruzzo has also issued several memos directing the agency’s staff to enforce labor laws against employers more aggressively.A sign encouraging workers to cast a ballot in a union vote at an Amazon facility in Bessemer, Ala., in March.Charity Rachelle for The New York TimesLast month, the agency threw out the results of a failed, prominent union election at an Amazon warehouse in Alabama, saying the company had inappropriately interfered with the voting. The agency ordered another election. Amazon has not appealed the finding, though it can still do so.Other employers, from beauty salons to retirement communities, have made nationwide settlements with the N.L.R.B. in the past when changing policies.With the new settlement, Amazon agreed to change a policy that limited employee access to its facilities and notify employees that it had done so, as well as informing them of other labor rights. The settlement requires Amazon to post notices in all of its U.S. operations and on the employee app, called A to Z. Amazon must also email every person who has worked in its operations since March.In past cases, Amazon explicitly said a settlement did not constitute an admission of wrongdoing. No similar language was included in the new settlement. In September, Ms. Abruzzo directed N.L.R.B. staff to accept these “non-admission clauses” only rarely.The combination of terms, including the “unusual” commitment to email past and current employees, made Amazon’s settlement stand out, Ms. Liebman said, adding that other large employers were likely to take notice.“It sends a signal that this general counsel is really serious about enforcing the law and what they will accept,” she said.The six cases that led to Amazon’s settlement with the agency involved its workers in Chicago and Staten Island, N.Y. They had said Amazon prohibited them from being in areas like a break room or parking lot until within 15 minutes before or after their shifts, hampering any organizing.One case was brought by Ted Miin, who works at an Amazon delivery station in Chicago. In an interview, Mr. Miin said a manager had told him, “It is more than 15 minutes past your shift, and you are not allowed to be here,” when he passed out newsletters at a protest in April.“Co-workers were upset about being understaffed and overworked and staged a walkout,” he said, adding that a security guard also pressured him to leave the site while handing out leaflets.In another case on Staten Island, Amazon threatened to call the police on an employee who handed out union literature on site, said Seth Goldstein, a lawyer who represents the company’s workers in Staten Island.The right for workers to organize on-site during non-working time is well established, said Matthew Bodie, a former lawyer for the N.L.R.B. who teaches labor law at Saint Louis University.“The fact that you can hang around and chat — that is prime, protected concerted activity periods, and the board has always been very protective of that,” he said.Mr. Miin, who is part of an organizing group called Amazonians United Chicagoland, and other workers in Chicago reached a settlement with Amazon in the spring over the 15-minute rule at a different delivery station where they had worked last year. Two corporate employees also settled privately with Amazon in an agreement that included a nationwide notification of worker rights, but the agency does not police it.Mr. Goldstein said he was “impressed” that the N.L.R.B. had pressed Amazon to agree to terms that would let the agency bypass its administrative hearing process, which happens before a judge and in which parties prepare arguments and present evidence, if it found the company had broken the agreement’s terms.“They can get a court order to make Amazon obey federal labor law,” he said. More

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    Why Christmas Gifts Are Arriving on Time This Year

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    Fears that a disrupted supply chain could wreak havoc on the logistics industry over the holiday turned out to be wrong as many Americans ordered early and shopped in stores.The warnings started to stream in early this fall: Shop early or you may not get your gifts on time.Global supply chain problems that have led to long delays in manufacturing and shipping could ripple outward, slowing package deliveries to millions of Americans in the weeks and days before Christmas, experts warned. The prospect even became a talking point in conservative attacks on President Biden’s policies.Despite early fears, however, holiday shoppers have received their gifts mostly on time. Many consumers helped themselves by shopping early and in person. Retailers ordered merchandise ahead of time and acted to head off other bottlenecks. And delivery companies planned well, hired enough people and built enough warehouses to avoid being crushed by a deluge of packages at the last minute, as the Postal Service was last year.The vast majority of packages delivered by UPS, FedEx and the Postal Service this holiday season are gifts destined for residential addresses, according to ShipMatrix, a software company that services the logistics industry. And nearly all have arrived on time or with minimal delays, defined as a few hours late for express packages and no more than a day late for ground shipments. The UPS and the Postal Service delivered about 99 percent of their packages on time by that measure between Nov. 14 and Dec. 11, and FedEx was close behind at 97 percent, according to ShipMatrix.“The carriers have done their part. Consumers have done their part,” said Satish Jindel, president of ShipMatrix. “When they work together, you get good results.”That’s not to say the supply chain turmoil is over. About a hundred container ships are waiting off the West Coast to unload their cargo. Big-ticket items, such as new cars, are still hard to find because of a shortage of some critical parts like computer chips. And prices are up for all kinds of goods.But at least when it comes to items that are in stock, delivery companies have given consumers little to complain about. By some measures, in fact, they have done a better job this holiday season than even before the pandemic. In the two full weeks after Thanksgiving, it took about four days from the moment a package was ordered online for it to be delivered by FedEx, according to data from NielsenIQ, which tracks online transactions from millions of online shoppers in the United States. That compares with about 4.6 days for UPS and more than five days for the Postal Service.For UPS and FedEx, those figures are an improvement of about 40 percent from a similar post-Thanksgiving period in 2019, according to NielsenIQ. For the Postal Service, it was a 26 percent improvement.“There’s all these different moving parts that have collaborated to help us get through what might have been a perfect storm to cause problems,” Bill Seward, president of worldwide sales and solutions for UPS, said in an interview. “We feel really good about where we’re at right now.”The achievement is all the more notable given that Americans are on track to spend more this holiday season than the one before — up to 11.5 percent over 2020, according to the National Retail Federation, a trade group.But this year has been different in a critical way: Many people started shopping earlier.The vast majority of packages delivered by UPS, FedEx and the Postal Service this holiday season are gifts destined for residential addresses.Desiree Rios for The New York TimesConsumer surveys, including those commissioned by UPS and NPD Group, a market research firm, found that Americans accelerated their holiday shopping this year, motivated by shortages, shipping delays or earlier sales from retailers.Jennifer Grisham, who lives in Southern California with her husband and three young children, was among them. Concerned by news of supply chain disruptions, Ms. Grisham asked her children to draw up their Christmas wish lists before Halloween, weeks earlier than usual. She had finished shopping by the day after Thanksgiving, which is usually when she starts buying gifts.“I have three kids who still believe in Santa Claus,” she said. “I was not going to bookend these two really dramatic years for us with them suddenly not getting what they wanted.”Ms. Grisham said she had little trouble finding the big-ticket items she pursued: a Barbie Dreamhouse for one daughter, Lego sets for her son and a cat condo for her other daughter, who plans to use it as a home for her stuffed animals.“I’m happy that I got it done early, because I didn’t have to worry about the risk,” she said.Retailers enticed consumers to shop early. Amazon and Target, for example, began holiday deals in October. According to Mr. Seward at UPS, 26 of the company’s 30 largest retail customers started offering substantial deals before Black Friday.Many Americans also eased pressure on UPS and other delivery companies by doing more shopping in stores. After consumers switched to online shopping in droves when the pandemic took hold last year, in-store shopping bounced back strongly this year, according to retail and logistics experts. In September, in-store sales accounted for about 64 percent of retail revenue, up 12 points from its low point during the pandemic, but still somewhat below 2019 levels, according to NPD Group.“We miss people,” Katie Thomas, a top consumer analyst at Kearney, a consulting firm, said about the compulsion to visit stores rather than buy online. “There’s a pent-up demand. We’re seeing people want to dress up again.”Retailers and delivery companies also worked behind the scenes to make sure the supply chain disruptions did not wreak havoc on holiday packages. Retailers worked harder to forecast sales and moved inventory to areas where UPS, FedEx and others had more capacity to pick up packages. Companies that previously relied mostly or exclusively on a single delivery service started doing business with several companies.The delivery companies have spent the past two years building out capacity, too, in response to surging demand. UPS, which in the past did not make deliveries on Saturday in much of the country, has been expanding its weekend service for years. It now offers Saturday deliveries to about 90 percent of the U.S. population. FedEx has added nearly 15 million square feet of sorting capacity to its network since June. And, starting in the spring, the Postal Service, which processes more mail and packages than the other delivery businesses, started leasing additional space and installing faster package-sorting machines around the country.A post office distribution center in Los Angeles last month was already in the holiday swing.Mario Tama/Getty ImagesThe companies have also responded by raising rates, imposing surcharges for larger packages that could slow down their networks, limiting the number of packages they will accept at busy times and penalizing retailers that ship many more or many fewer packages than they had forecast.“We used to think that every package was the same,” Carol Tomé, UPS’s chief executive, told financial analysts in October, explaining her strategy of focusing on quality over quantity. “We don’t think that anymore. So for some shippers, we’re no longer delivering their packages, and that’s OK with us.”The Postal Service doesn’t have the luxury of easily turning away business, but even it has done a better job of managing expectations for holiday package deliveries. Despite the introduction of its first-ever holiday surcharge last year, its delivery performance suffered. This year, however, it has fared much better, thanks to 13 million square feet of new processing space, 112 new high-speed processing machines and the decision to hire peak-season workers earlier.“U.S.P.S. is maybe the most exciting story of all,” said Josh Taylor, senior director of professional services at Shipware, a consulting firm. “The fact that they’re not overwhelmed, that their network can continue to deliver on time, it’s a great development for consumers.”But the holiday crunch does not end on Christmas. Online returns will keep delivery companies busy for weeks.And the pandemic is not yet over. Fear over the spread of the Omicron variant of the coronavirus could drive consumers back to online shopping in the months to come, which would impose new pressures on delivery companies and retailers. More

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    At Amazon Site, Tornado Collided With Company’s Peak Delivery Season

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    Amazon, which has its highest employment during the holiday shopping season, said the tornado formed at the site’s parking lot.Nearly every day as Christmas nears, Amazon’s share of online sales typically rises, as customers turn to the e-commerce giant to quickly deliver packages. To make that happen, Amazon hires hundreds of thousands of additional workers, both full-time employees and contractors, and runs its operations at full tilt.One of them, Alonzo Harris, drove his cargo van into Amazon’s delivery depot in Edwardsville, Ill., after 8 p.m. on Friday after a full day delivering packages north of St. Louis. Suddenly, an alarm blared on his work phone. Someone yelled that this was not a drill. Mr. Harris, 44, ran into a shelter on Amazon’s site and heard a loud roar.“I felt like the floor was coming off the ground,” he said. “I felt the wind blowing and saw debris flying everywhere, and people started screaming and hollering and the lights went out.”One of the tornadoes that roared through Kentucky, Arkansas, Illinois and other states on Friday had plowed straight into Amazon’s delivery station in Edwardsville. The toll was grim: Six people died, with 45 making it out alive, according to the Illinois governor, J.B. Pritzker.At least six people died after a tornado tore through an Amazon warehouse in Edwardsville, Ill., on Friday.MaxarOn Sunday, the authorities said that there were no additional reports of missing people but that search efforts were continuing. It was initially unclear how many people had been at Amazon’s site and what safety measures could have been taken to minimize the loss of life. The tornado was ferocious, ripping off the building’s roof. Two of the structure’s 40-foot-high concrete walls collapsed.The tornado coincided with a peak in the company’s work force. Americans’ reliance on Amazon soon turned the deaths at the delivery depot into a focus of the public as the tornadoes’ toll became clear over the weekend.At a church service on Sunday at Thrive Church in Granite City, Ill., about 15 miles from the destroyed Amazon site, clergy and congregants tried to make sense of the disaster and the company’s response.“It’s not lost on me, Lord, that this was an Amazon warehouse, and I, like so many other people in this country, get irritated if I can’t get my Christmas gifts in three days from Amazon,” Sharon Autenrieth, the pastor, said during the service.That logistical peak also complicated the rescue effort in Edwardsville. The more than 250,000 drivers like Mr. Harris who fuel Amazon’s delivery network do not work directly for the company but instead are employed by over 3,000 contractor companies. On Saturday, Mike Fillback, the police chief in Edwardsville, said the authorities had “challenges” in knowing “how many people we actually had at that facility at the time because it’s not a set staff.”Only seven people at Amazon’s site were full-time employees, said a Madison County commissioner who declined to give his name. He said most were delivery drivers in their 20s who work as contractors.The delivery center sits in a flat industrial expanse with low-slung warehouses, parked semi-trucks and muddy fields a few miles east of St. Louis and the Mississippi River. An Amazon fulfillment center almost directly across the street from the delivery station was largely untouched. On the front windows there, next to images of snowflakes and Christmas trees, were the words “Peak 2021” and “Our Time To Shine.”On Sunday, Kelly Nantel, an Amazon spokeswoman, said about 190 people worked at the delivery station across all of its shifts but declined to comment on how many were full-time workers. She said the tornado formed in the parking lot, hit and then dissipated.The tornado struck at the end of a shift, as drivers returned their vans, unloaded items and headed home. Contract drivers are not required to clock into the building, Ms. Nantel said.Workers there sheltered in two places, she said, and one of those areas was directly struck. These areas are typically fortified, though it was unclear if they were built to withstand a direct tornado strike. Based on preliminary interviews, Ms. Nantel added, the company calculated that about 11 minutes lapsed between the first warning of a tornado and when it hit the delivery station.The six victims ranged in age from 26 to 62 years old, the Edwardsville police department said on Sunday.Amazon’s model of using contractors is part of a huge push that the company started in 2018 to expand its own deliveries, rather than rely solely on shipping companies like UPS. The company built a network of delivery stations, like the one Edwardsville, which are typically cavernous, single-story buildings.Unlike Amazon’s massive, multistory fulfillment centers where it stores inventory and packs items into individual packages, the delivery stations employ fewer people. Amazon employees sort packages for each delivery route in one area. Then, drivers working for contractors bring vans into another area, where the packages are rolled over in carts, loaded into the vans and driven out.Amazon had about 70 delivery stations in the United States in 2017 and now has almost 600, with more planned, according to the industry consultant MWPVL International. Globally, the company delivers more than half of its own packages, and as much a three-quarters of its packages in the United States.Most drivers work for other companies under a program called Delivery Service Partners. Amazon has said the contracting arrangement helps support small businesses that can hire in their communities. But industry consultants and Amazon employees directly involved in the program have said it lets the company avoid liability for accidents and other risks, and limits labor organizing in a heavily unionized industry.Sucharita Kodali, an analyst at Forrester Research, said that while the holiday season is critical for all retailers, it is particularly intense for Amazon. “They promise these delivery dates, so they are likely to experience the most last-minute purchases,” she said.The Edwardsville delivery station, which Amazon calls DLI4, opened last year and had room for 60 vans at once, according to planning documents.On Friday, a tornado warning was in effect for Edwardsville as of 8:06 p.m., according to the National Weather Service. At 8:27 p.m., the county emergency management agency reported a partial roof collapse at Amazon’s delivery depot and that people were trapped inside.Aerial footage of the wreckage showed dozens of vans, many of which had Amazon’s logo, underneath the rubble. Some of the vans were U-Hauls, which the contractors sometimes rent to serve demand during busy periods.Carla Cope and her husband, said their son, Clayton Cope, 29, was a maintenance mechanic contracting for Amazon. They spoke to him by phone on Friday night when he was at work, they said, and he assured them that he and other workers were on their way to the tornado shelter on site.About 10 minutes later, the tornado struck. The Copes tried numerous times to reach their son again by phone. They eventually drove to the warehouse from their home in Brighton, Ill., a half-hour away.“When we pulled up to the building it was pretty devastating,” Ms. Cope said. “There were trucks and rescue vehicles everywhere, a lot of chaos.”When her husband saw the damage, he immediately feared the worst, Ms. Cope said. Mr. Cope works the same job as a maintenance mechanic that their son did, splitting the night shifts except on Wednesdays when the two work together. He knew that their son was likely to have been in the part of the building that collapsed, she said.The couple waited at the building until 4:30 a.m., when officials informed them that they had recovered their son’s body.“There’s just really no words to describe it when they tell you your son’s dead,” said Ms. Cope, her voice cracking. “It’s surreal, unbelievable, devastating.”Mr. Harris, the delivery driver who survived the storm, said that after the tornado passed, he saw a green tornado shelter sign still hanging above Amazon’s shelter.“I doubt anything man-made can withstand Mother Nature’s force,” he said. “I think it was an act of God that our shelter remained secure.”Robert Chiarito More

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    Teamsters Vote for Sean O'Brien, a Hoffa Critic, as President

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    Sean O’Brien scored a decisive victory among union members after criticizing the current leadership as too timid in UPS talks and Amazon organizing.Sean O’Brien was a rising star in the International Brotherhood of Teamsters in 2017 when the union’s longtime president, James P. Hoffa, effectively cast him aside.But that move appears to have set Mr. O’Brien, a fourth-generation Teamster and head of a Boston local, on a course to succeed Mr. Hoffa as the union’s president and one of the most powerful labor leaders in the country.A Teamsters vice president who urged a more assertive stand toward employers like the United Parcel Service — as well as an aggressive drive to organize workers at Amazon — Mr. O’Brien has declared victory in his bid to lead the nearly 1.4 million-member union.According to a tally reported late Thursday on an election supervisor’s website, he won about two-thirds of the votes cast in a race against the Hoffa-endorsed candidate, Steve Vairma, another vice president. He will assume the presidency in March.The result appears to reflect frustration over the most recent UPS contract and growing dissatisfaction with Mr. Hoffa, who has headed the union for more than two decades and whose father did from 1957 to 1971. The younger Mr. Hoffa did not seek another five-year term.In an interview, Mr. O’Brien said success in organizing Amazon workers — a stated goal of the Teamsters — would require the union to show the fruits of its efforts elsewhere.“We’ve got to negotiate the strongest contracts possible so that we can take it to workers at Amazon and point to it and say this is the benefit you get of being in a union,” he said.David Witwer, an expert on the Teamsters at Pennsylvania State University at Harrisburg, said it was very rare for the Teamsters to elect a president who was not an incumbent or backed by the incumbent and who was sharply critical of his predecessor, as Mr. O’Brien was of Mr. Hoffa.Since the union’s official founding in 1903, Dr. Witwer said in an email, “there have been only two national union elections that have seen an outside reformer candidate win election as president.”During the campaign, Mr. O’Brien, 49, railed against the contract that the union negotiated with UPS for allowing the company to create a category of employees who work on weekends and top out at a lower wage, among other perceived flaws.“If we’re negotiating concessionary contracts and we’re negotiating substandard agreements, why would any member, why would any person want to join the Teamsters union?” Mr. O’Brien said at a candidate forum in September in which he frequently tied his opponent to Mr. Hoffa.Mr. O’Brien has also criticized his predecessor’s approach to Amazon, which many in the labor movement regard as an existential threat. Although the union approved a resolution at its recent convention pledging to “supply all resources necessary” to unionize Amazon workers and eventually create a division overseeing that organizing, Mr. O’Brien said the efforts were too late in coming.“That plan should have been in place under our warehouse director 10 years ago,” he said in the interview, alluding to the position of warehouse division director that his opponent, Mr. Vairma, has held since 2012.The outcome appears to reflect frustration over the union’s growing dissatisfaction with the tenure of James P. Hoffa.Calla Kessler/The New York TimesIn an interview, Mr. Hoffa said that the union was broke and divided when he took over and that he was leaving it “financially strong and strong in every which way.”He said he was proud of the recent UPS contract, calling it “the richest contract ever negotiated” and pointing out that it allows many full-time drivers to make nearly $40 an hour.He said Mr. O’Brien’s critique of the union’s efforts on Amazon was unfair. “No one was doing it a decade ago,” Mr. Hoffa said. “It’s more complex than just going out and organizing 20 people at a grocery store. He sounds like it’s so simple.”Mr. O’Brien did not elaborate on his own plans for organizing Amazon, saying he wanted to solicit more input from Teamsters locals, but suggested that they would include bringing political and economic pressure to bear on the company in cities and towns around the country. The union has taken part in efforts to deny Amazon a tax abatement in Indiana and to reject a delivery station in Colorado.Mr. O’Brien, who once worked as a rigger, transporting heavy equipment to construction sites, was elected president of a large Boston local in 2006. Within a few years, he appeared to be ensconced in the union’s establishment wing.In a 2013 incident that led to a 14-day unpaid suspension, Mr. O’Brien threatened members of Teamsters for a Democratic Union, a reform group, who were taking on an ally of his in Rhode Island. “They’ll never be our friends,” he said of the challengers. “They need to be punished.”Mr. O’Brien has apologized for the comments and points out that the reform advocate who led the challenge in Rhode Island, Matt Taibi, is now a supporter who ran on his slate in the recent election.The break with Mr. Hoffa came in 2017. Early that year, the longtime Teamsters president appointed Mr. O’Brien to a position whose responsibilities included overseeing the union’s contract negotiation with UPS, where more than 300,000 Teamsters now work.Understand Amazon’s Employment SystemCard 1 of 6A look inside Amazon. More

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    Sean O'Brien, a Hoffa Critic, Claims Victory in Teamster Vote

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    The head of a Boston local who urged a more assertive stand toward employers like the United Parcel Service — and an aggressive drive to organize workers at Amazon — declared victory Thursday in his bid to lead the International Brotherhood of Teamsters.If the result is confirmed, the victory by Sean O’Brien, an international vice president of the Teamsters, would put a new imprint on the nearly 1.4 million-member union after more than two decades of leadership by James P. Hoffa, who did not seek another five-year term.The outcome appears to reflect frustration over the union’s most recent contract with UPS and a growing dissatisfaction with the tenure of Mr. Hoffa, whose father ran the union from 1957 to 1971.With about 90 percent of the ballots tallied, Mr. O’Brien had more than two-thirds of the vote in his race against Steve Vairma, a fellow international vice president who had been endorsed by Mr. Hoffa. The election was conducted by mail-in ballots that were due Monday.Mr. O’Brien, 49, railed against the contract that the union negotiated with UPS — where more than 300,000 Teamsters work — for allowing the company to create a category of employees who work on weekends and top out at a lower wage, among other perceived flaws.“If we’re negotiating concessionary contracts and we’re negotiating substandard agreements, why would any member, why would any person want to join the Teamsters union?” Mr. O’Brien said at a candidate forum in September in which he frequently tied his opponent to Mr. Hoffa.Mr. O’Brien has also criticized Mr. Hoffa’s approach to Amazon, which many in the labor movement regard as an existential threat. Although the union approved a resolution at its recent convention pledging to “supply all resources necessary” to unionize Amazon workers and eventually create a division overseeing that organizing, Mr. O’Brien said the efforts were too late. More

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    Retailers Scramble to Attract Workers Ahead of the Holidays

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    Signing bonuses, higher wages, even college tuition. Companies are using perks to entice new employees in an industry that has been battered by the pandemic.Macy’s is offering referral bonuses of up to $500 for each friend or family member that employees recruit to join the company. Walmart is paying as much as $17 an hour to start and has begun offering free college tuition to its workers. And some Amazon warehouse jobs now command signing bonuses of up to $3,000.Retailers, expecting the holiday shopping season to be bustling once again this year after being upended by the coronavirus in 2020, are scrambling to find enough workers to staff their stores and distribution centers in a tight labor market. It is not proving easy to entice applicants to an industry that has been battered, more than most, by the pandemic’s many challenges, from fights over mask wearing to high rates of infection among employees. Willing retail workers are likely to earn larger paychecks and work fewer hours, while consumers may be greeted by less inventory and understaffed stores.“Folks looking to work in retail have typically had very little choice — it’s largely been driven by geography and availability of hours,” said Mark A. Cohen, the director of retail studies at Columbia University’s business school. “Now they can pick and choose who’s got the highest, best benefits, bonuses and hourly rates. And as we’ve seen, the escalation has been striking.”Or as Jeff Gennette, the chief executive of Macy’s, which plans to hire 76,000 full- and part-time employees this season, put it in a recent interview: “Everyone’s experiencing this — there’s a war for talent at the front lines. My sense is we all have to raise our game.”While some of the most generous perks, like tuition reimbursement, are being offered mainly to long-term workers, even seasonal workers will see higher pay than usual. It’s especially critical for retailers to hire temporary help this year because existing employees are already strained from nearly two years of pandemic conditions. The National Retail Federation, an industry group, is anticipating record holiday sales and has forecast that retailers will hire 500,000 to 665,000 seasonal workers, significantly more than the 486,000 in 2020.It’s especially critical for retailers to hire temporary help this year to assist existing employees already strained from nearly two years of pandemic conditions.Jeenah Moon for The New York Times“The biggest risk to retailers and distributors is that they are working their current work force too much,” said Scott Mushkin, who founded the financial consultant R5 Capital, based in New Canaan, Conn. “Overtime can only go so far. The work force is tired out.”Mr. Mushkin experienced firsthand just how eager retailers are for workers during a visit last month to a Home Depot in Naperville, Ill.“I was looking at a sign listing open positions at the store when I was basically accosted by a manager asking if I was interested in applying,” Mr. Mushkin said.Mr. Mushkin said he was struck not only by the manager’s desperation but also by the number of positions available. “Basically every job in that store is open,” he said. “So who is doing those jobs now? Who is picking up the slack?”Those pressures may explain why large retailers like Walmart are looking to hire 150,000 additional workers to supplement its current staff this season. For several years leading up to the pandemic, Walmart offered existing workers extra hours at the holidays but did not start a large hiring blitz. (Existing employees can still sign up for additional hours.) It recently raised its minimum wage to $12 an hour, and in some stores it is offering new workers $17 an hour.A recruiter for Amazon at a job fair in Virginia last month. It is looking for an additional 150,000 people this holiday season.Andrew Caballero-Reynolds/Agence France-Presse — Getty ImagesAmazon is also looking for an additional 150,000 people this holiday season, which follows a push to expand its permanent work force by 125,000. With giant retailers gobbling up many of the job candidates, enticing new employees is that much harder for others.Many retailers, like Saks Off 5th, reiterated commitments to remain closed on Thanksgiving this year, a welcome shift for workers after a yearslong trend of shopping invading the holiday. Demanding that employees work in stores that day would probably be a particularly tough sell this year.Nordstrom, which is aiming to hire 28,600 seasonal and regular employees, said it had increased bonus and incentive pay to as much as $650 for hourly and overnight store workers, from as much as $400 last year.Saks Off 5th said in October that it was raising its minimum base wage for hourly store workers to $15 per hour — more than double the federal minimum wage — and that it would not offer extended holiday shopping hours this year so that staff could have more flexibility.Best Buy is allowing job applicants to submit videos rather than coming in physically for a first round of interviews, saying in a recent statement that the videos “can be recorded and reviewed without the need to go back and forth on scheduling.”The scramble by retailers comes as the American economy is gaining strength, adding 531,000 jobs in October, a sharp rebound from the previous month. But even as unemployment dropped to 4.6 percent from 4.8 percent, the labor participation rate — which measures the share of the working-age population employed or looking for a job — was flat last month, at 61.6 percent. That signals that the pool of available workers remains tight.“We’re coming out of a crisis we have no experience in dealing with, in which millions of people were furloughed or laid off or removed from the work force, and to think they’ll all show up on certain date to come back to work is kind of silly,” Mr. Cohen said. “Some people are still fearful about coming back to work, especially in a job in which they would be exposed to large numbers of the public.”While fear of the Delta variant may be keeping some workers away, the retail industry had been loath to impose vaccine mandates for fear that store workers might leave and that it might become even harder to find seasonal employees. A new vaccinate-or-test requirement for companies with 100 or more employees announced by the Biden administration on Thursday essentially forced their hands, though it is not scheduled to take effect until Jan. 4 and was temporarily blocked on Saturday by a federal appeals court in Louisiana. (The mandate does instruct employers to require unvaccinated workers to wear masks by Dec. 5.)The National Retail Federation was critical of the mandate, saying it imposes “burdensome new requirements on retailers during the crucial holiday shopping season.”L.L. Bean’s chief executive said that it has been “incredibly challenging” to hire hourly employees, especially for its 54 stores.Karsten Moran for The New York TimesStephen Smith, the chief executive of L.L. Bean, the outdoor retailer based in Maine, said it has been “incredibly challenging” to hire hourly employees, especially for its more than 50 stores. The chain is not offering bonuses, but it has given priority to new forms of flexibility to attract workers. For example, jobs at its domestic call center are now fully remote.In stores, Mr. Smith said, “we have changed our shift structure so you can do two- or four-hour shifts” in an attempt to “make it a lot easier if you’re juggling family responsibilities.”The company has also sought to emphasize its unique benefits, including several paid days off for employees to pursue outdoor experiences.The challenge of finding workers has put a spotlight on how difficult many retail jobs are and on the short shrift given to many store workers during the worst of the pandemic. They were regularly exposed to Covid-19 and involved in customer conflicts around wearing masks, and they were inconsistently offered hazard pay or other compensation for their efforts. Many retail workers said that they were not properly informed when they were exposed to the virus in stores.Anthony Stropoli, a personal shopper at Bergdorf Goodman, holds one of the lucrative, client-facing jobs that have been fading in retail in recent years and he noted that luxury retail was a different ballgame. He previously worked at Barneys New York, which filed for bankruptcy in 2019.“A lot of people do not want to work in retail right now — I really, really see it,” Mr. Stropoli said. “People are not feeling appreciated or fairly compensated, and I think this whole Covid thing has made them really rethink that. They want to feel valued.”It all means that workers have more leverage this season than they have in the past. Joel Bines, global co-leader of the retail practice at the consulting firm AlixPartners, said if retailers want to find enough workers this season, they need to pay them more and fundamentally improve working conditions.“For retailers, who have treated their workers as dispensable cogs in order to increase the bottom line, to say they are shocked that they can’t find people to work for them is hard to believe,” Mr. Bines said.“The thing that the industry needs to realize is that workers have agency now,” he added. “They have agency in a way they never have before.”Contact Sapna Maheshwari at sapna@nytimes.com and Michael Corkery at michael.corkery@nytimes.com. More

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    California Senate Passes Bill Reining In Amazon Labor Model

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    The bill would curb production quotas at Amazon and other companies that critics say are excessive and force workers to forgo bathroom breaks.In the latest sign of the growing scrutiny of Amazon’s labor practices, the California State Senate on Wednesday approved a bill that would place limits on production quotas for warehouse workers.The bill, which passed the Senate 26-to-11, was written partly in response to high rates of injuries at Amazon warehouses. The legislation prohibits companies from imposing production quotas that prevent workers from taking state-mandated breaks or using the bathroom when needed, or that keep employers from complying with health and safety laws.The Assembly, which passed an initial version in May, is expected to approve the Senate measure by the end of the state’s legislative session on Friday.“In the Amazon warehouse space, what we’re trying to take on is this increased use of quotas and discipline based on not meeting the quotas, without a human factor in dealing with a reason why a worker might not make a quota,” Assemblywoman Lorena Gonzalez, the bill’s author, said in an interview last week.Gov. Gavin Newsom had not indicated before the vote whether he would sign the bill, but his staff was involved in softening certain provisions that helped pave the way for its passage.Experts said the bill was novel in its attempts to regulate warehouse quotas that are tracked by algorithms, as at Amazon, and make them transparent.“I believe one of Amazon’s biggest competitive advantages over rivals is this ability to monitor their work force, prod workers to work faster and discipline workers when they fail to meet quotas,” said Beth Gutelius, research director at the Center for Urban Economic Development at the University of Illinois Chicago.“It’s unprecedented for a bill to intervene like this in the ways that technology is used in the workplace,” added Dr. Gutelius, who focuses on warehousing and logistics.Business groups have strongly opposed the bill, complaining that it will lead to costly litigation and hamstring the entire industry even though it is primarily intended to address labor practices at a single company.Amazon has not commented on the bill but has said that it tailors performance targets to individual employees over time based on their experience level and that the targets take into account employee health and safety. The company has emphasized that fewer than 1 percent of terminations are related to underperformance.The bill would require Amazon and other warehouse employers to disclose productivity quotas to workers and regulators, and would allow workers to sue to eliminate quotas that prevent them from taking breaks and following safety protocols.While it is unclear how big an impact the bill would have on Amazon’s operations, limiting the company’s hourly productivity quotas would probably affect its costs more than its ability to continue next-day and same-day delivery.“I think it’s all about money, not about what the system is set up to handle,” said Marc Wulfraat, president of the supply-chain and logistics consulting firm MWPVL International. “If you said to me, ‘Bring the rate down from 350 to 300 per hour,’ I’d say, ‘OK, we need to add more people to the operation — maybe we need 120 people instead of 100.’”A report by the Strategic Organizing Center, a group backed by four labor unions, shows that Amazon’s serious-injury rate nationally was nearly double that of the rest of the warehousing industry last year.“They would say, ‘Always pivot, never twist,’ all this stuff you’re supposed to do,” said Nathan Morin, who worked in an Amazon warehouse in California for more than three years packing and picking items before leaving in December. “But it’s oftentimes impossible to follow the proper body movements while also making rate.”The company has vowed to improve worker safety and said it had spent more than $300 million this year on new safety measures.Amazon is under growing pressure from unions and other groups over its labor practices. A regional office of the National Labor Relations Board has indicated that it is likely to overturn a failed union election at an Amazon warehouse in Alabama on the grounds that the company improperly interfered with the voting.The objections to the election were brought by the Retail, Wholesale and Department Store Union, which spearheaded the organizing campaign.The International Brotherhood of Teamsters, which backed the California bill and whose local officials have helped to derail a tax abatement for Amazon in Indiana and approval for an Amazon facility in Colorado, has committed to providing “all resources necessary” to unionize Amazon workers.“This is a historic victory for workers at Amazon and other major warehouse companies,” Ron Herrera, a Teamsters official who is president of the Los Angeles County Federation of Labor, said in a statement. “These workers have been on the front lines throughout the pandemic, while suffering debilitating injuries from unsafe quotas.” More

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    California Bill Could Alter Amazon Labor Practices

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    The bill would rein in production quotas at warehouses that critics say are excessive and force workers to forgo bathroom breaks.Among the pandemic’s biggest economic winners is Amazon, which nearly doubled its annual profit last year to $21 billion and is on pace to far exceed that total this year.The profits flowed from the millions of Americans who value the convenience of quick home delivery, but critics complain that the arrangement comes at a large cost to workers, whom they say the company pushes to physical extremes.That labor model could begin to change under a California bill that would require warehouse employers like Amazon to disclose productivity quotas for workers, whose progress they often track using algorithms. “The supervisory function is being taken over by computers,” said Assemblywoman Lorena Gonzalez, the bill’s author. “But they’re not taking into account the human factor.”The bill, which the Assembly passed in May and the State Senate is expected to vote on this week, would prohibit any quota that prevents workers from taking state-mandated breaks or using the bathroom when needed, or that keeps employers from complying with health and safety laws.The legislation has drawn intense opposition from business groups, which argue that it would lead to an explosion of costly litigation and that it punishes a whole industry for the perceived excesses of a single employer.“They’re going after one company, but at the same time they’re pulling everyone else in the supply chain under this umbrella,” said Rachel Michelin, the president of the California Retailers Association, on whose board Amazon sits.California plays an outsize role in the e-commerce and distribution industry, both because of its huge economy and status as a tech hub and because it is home to the ports through which much of Amazon’s imported inventory arrives. The Inland Empire region, east of Los Angeles, has one of the highest concentrations of Amazon fulfillment centers in the country.Kelly Nantel, an Amazon spokeswoman, declined to comment on the bill but said in a statement that “performance targets are determined based on actual employee performance over a period of time” and that they take into account the employee’s experience as well as health and safety considerations.“Terminations for performance issues are rare — less than 1 percent,” Ms. Nantel added.The company faces growing scrutiny of its treatment of workers, including an expected ruling from a regional director of the National Labor Relations Board that it unlawfully interfered in a union vote at an Alabama warehouse. The finding could prompt a new election there, though Amazon has said it would appeal to preserve the original vote, in which it prevailed.In June, the International Brotherhood of Teamsters passed a resolution committing the union to provide “all resources necessary” to organize Amazon workers, partly by pressuring the company through political channels. Teamsters officials have taken part in successful efforts to deny Amazon a tax abatement in Indiana and approval for a facility in Colorado and are backers of the California legislation.Both sides appear to regard the fight over Amazon’s quotas as having high stakes. “We know that the future of work is falling into this algorithm, A.I. kind of aspect,” said Ms. Gonzalez, the bill’s author. “If we don’t intervene now, other companies will be the next stage.”Ms. Michelin, the retail association president, emphasized that the data was “proprietary information” and said the bill’s proponents “want that data because it helps unionize distribution centers.”A report by the Strategic Organizing Center, a group backed by four labor unions, shows that Amazon’s serious-injury rate nationally was almost double that of the rest of the warehousing industry in 2020 and more than twice that of warehouses at Walmart, a top competitor.Asked about the findings, Ms. Nantel, the Amazon spokeswoman, did not directly address them but said that the company recently entered into a partnership with a nonprofit safety advocacy group to develop ways of preventing musculoskeletal injuries. She also said that Amazon had invested over $300 million this year in safety measures, like redesigning workstations.Amazon employees have frequently complained that supervisors push them to work at speeds that wear them down physically.“There were a lot of grandmothers,” one worker said in a study underwritten by the Los Angeles County Federation of Labor, another backer of the California bill. Managers would “come to these older women, and say, ‘Hey, I need you to speed up,’ and then you could see in her face she almost wants to cry. She’s like, ‘This is the fastest my body can literally go.’”Yesenia Barrera, a former Amazon worker in California, said that managers told her she needed to pull 200 items an hour from a conveyor belt, unbox them and scan them. She said she was usually able to reach this target only by minimizing her bathroom use.“That would be me ignoring using restroom-type things to be able to make it,” Ms. Barrera said in an interview for this article. “When the bell would ring for a break, I felt like I had to do a few more items before I took off.”An employee sorted items at a Staten Island warehouse in May. Workers have complained that supervisors push them to work at speeds that wear them down.Chang W. Lee/The New York TimesEdward Flores, faculty director of the Community and Labor Center at the University of California, Merced, says repetitive strain injuries have been a particular problem in the warehousing industry as companies have automated their operations.“You’re responding to the speed at which a machine is moving,” said Dr. Flores, who has studied injuries in the industry. “The greater reliance on robotics, the higher incidence of repetitive motions and thus repetitive injuries.” Amazon has been a leader in adopting warehouse robotics.Ms. Gonzalez said that when she met with Amazon officials after introducing a similar bill last year, they denied using quotas, saying that they relied instead on goals and that workers were not punished for failing to meet them.During a meeting a few days before the Assembly passed this year’s bill, she said, Amazon officials acknowledged that they could do more to promote the health and safety of their workers but did not offer specific proposals beyond coaching employees on how to be more productive.At one point during the more recent meeting, Ms. Gonzalez recalled, an Amazon official raised concerns that some employees would abuse more generous allotments of time for using the bathroom before another official weighed in to de-emphasize the point.“Someone else tried to walk it back,” she said. “It’s often said quietly. It’s not the first time I’ve heard it.”The bill’s path has always appeared rockier in the State Senate, where amendments have weakened it. The bill no longer directs the state’s occupational safety and health agency to develop a rule preventing warehouse injuries that result from overwork or other physical stress.Instead, it gives the state labor commissioner’s office access to data about quotas and injuries so it can step up enforcement. Workers would also be able to sue employers to eliminate overly strict quotas.Ms. Gonzalez said she felt confident about the Senate vote, which must come by the close of the legislative session on Friday, but business groups are still working hard to derail it.Ms. Michelin, the retailer group president, said that the Senate committees’ changes had made the bill more palatable and that her members might support a measure that gave more resources to regulators to enforce health and safety rules. But she said they had serious concerns about the way the bill empowers workers to sue their employers.As long as that provision remains in the bill, she said, “we will never support it.” More