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    Amazon Labor Fight: Wages May Not Ward Off Union

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    Recent organizing campaigns in the South suggest the company’s wage scale may have left it vulnerable to a union.In making the case against a union at its warehouse in Bessemer, Ala., Amazon has touted its compensation package. The company notes that base pay at the facility, around $15.50 an hour for most rank-and-file workers, is more than twice the local minimum wage, and that it offers comprehensive health insurance and retirement benefits.But to many of Amazon’s Bessemer employees, who are voting this month on whether to unionize, the claims to generosity can ring hollow alongside the demands of the job and local wage rates. The most recent figure for the median wage in greater Birmingham, a metropolitan area of roughly one million people that includes Bessemer, was nearly $3 above Amazon’s pay there, according to the Bureau of Labor Statistics.“If you go into certain rural areas in the South, where wages are suppressed and there’s no industry, that may seem attractive,” said Joshua Brewer of the Retail, Wholesale and Department Store Union, who is the campaign’s lead organizer. “For our folks here in Bessemer and Birmingham, it’s barely enough to keep the lights on. To tote it in front of them like it’s something to be prized is mildly offensive.”It is common for employers facing a union vote to emphasize the generosity of their wages and to suggest that workers could be worse off if they unionize. But the message takes on added resonance in the South, where incomes are lower and jobs with good pay can be harder to find. As a result, organizers say, employers and their surrogates in the region often use such tactics more aggressively.A commercial during a 2017 union campaign at a Boeing plant in South Carolina showed a casino boss urging workers to roll dice at a craps table to make the point that joining a union could put their livelihood at risk. Union campaigns at a Nissan plant in Canton, Miss., and a Volkswagen plant in Chattanooga, Tenn., featured similar appeals.The catch is that wages at these plants tended to be substantially higher than the typical wage in their areas, reinforcing workers’ sense that they had something valuable to lose.Veteran production workers made $23.50 an hour at the Volkswagen plant in 2019, the year of the most recent campaign there. The comparable figure was $23 at Boeing’s South Carolina facility when workers voted on a union and $26 at Nissan’s Mississippi plant during the vote there, also in 2017. The union lost in all three cases.“The global manufacturing companies took more steps to pre-empt unionization by offering better pay,” Richard Bensinger, a former organizing director for the United Automobile Workers and the A.F.L.-C.I.O., said in an email.Mr. Bensinger, who was involved in the Nissan and Volkswagen campaigns and is helping workers organize at other Amazon facilities, held up Mercedes-Benz as a telling example. The U.A.W. tried to organize the company’s plant in Vance, Ala., about 25 miles from Bessemer, for several years during the last decade. But it could never quite get a majority of workers to sign cards, Mr. Bensinger said, partly because wages at the plant were so high — $28 an hour for veteran workers, and even more today.“They paid U.A.W. scale to try to keep the U.A.W. out,” Mr. Bensinger said. (Mercedes, like other automakers, also used temporary workers whom it paid far less.)By contrast, unions have been successful when companies have held down wages. During the first half the 2010s, workers unionized at several auto parts suppliers in Alabama and elsewhere in the South, often citing low pay and benefits as the impetus.In 2015, employees at Commercial Vehicle Group in Piedmont, Ala., which made seats for trucks, voted to join the U.A.W. by a roughly two-to-one ratio. Workers at the plant complained of wages that started as low as $9.70 an hour for temporary workers and topped out at $15.80 for full-time employees. The company laid off many of the workers when it later consolidated its operations.“Workers always say this: It’s about respect, recognition,” said Gary Casteel, the U.A.W.’s former second-ranking official, who helped oversee much of its organizing in the South. “That’s not the case. It is about the money. Everybody wants to get paid more.”Darryl Richardson, an Amazon worker in Alabama, has seen the power of a union to raise wages.Lynsey Weatherspoon for The New York TimesDarryl Richardson, an Amazon employee in Alabama, knows firsthand the catalyzing effect of low wages. In 2012, he was part of a group of workers that voted overwhelmingly to unionize at Faurecia Interior Systems in Cottondale, Ala., which made seats for the nearby Mercedes plant.Mr. Richardson said that he had made around $12.50 an hour when he started at the plant but that, thanks to the union, his hourly pay had nearly doubled by the time he left in 2019, after the plant lost its contract with Mercedes. He said several of his co-workers at Faurecia were now working at Amazon and had seen the power of a union to raise wages.“From Faurecia to Amazon, it’s a big pay difference,” said Mr. Richardson, who now makes $15.55.Heather Knox, an Amazon spokeswoman, said that workers in Bessemer were eligible for raises every six months and that they had received a $2-an-hour bonus during much of last spring. Full-time rank-and-file employees received $300 bonuses during the holiday season and $500 last June. The company also provides significant tuition reimbursement for employees who take classes in certain fields.Some workers at the Bessemer facility, which opened just as Covid-19 was bearing down last March, regard the pay as more than adequate, especially younger employees.“I feel like it is fair,” said Roderick Crocton, 24, who previously made $11.25 as an overnight stocker at a local retailer. “In my old job, I lived in my apartment, never got to go anywhere, paid my bills. Today I’m able to go out and experience being in the city.”But other workers emphasize that pay at Amazon isn’t particularly high for the Birmingham area, even if the pandemic has reduced their job options. An Amazon employee named Clint, a union backer who declined to give his last name for fear of retaliation, said he had stood to make about $40,000 a year installing satellite dishes before the pandemic left him unemployed. He said he made his finances work partly by living with his mother.The retail workers’ union said it represented employees at nearby warehouses where pay is $18 to $21 an hour, including an ice cream facility and a grocery warehouse not far from Amazon.At a plant owned by NFI Group, a Canadian bus manufacturer, about an hour east of Birmingham, hourly pay for rank-and-file workers ranges from $14.79 to $23.31, according to the company.A survey of about 100 workers at the NFI plant by Emily Erickson, a professor at Alabama A&M University, found that white workers earned about $3 an hour more than Black workers on average. One former employee who currently works for a labor group in the area, Charles Crooms, said this made it more difficult to persuade white workers to join a union organizing effort. (The company said all employees with the same job grade and tenure were paid the same.)Workers and organizers said the dissatisfaction over wages at the Amazon warehouse was heightened by the vast wealth of Jeff Bezos, Amazon’s founder.The Amazon warehouse in Bessemer opened just as Covid-19 was bearing down last March.Bob Miller for The New York Times“He’s one of the richest men in the world, yet you treat employees like scavengers,” said Jennifer Bates, an Amazon employee who earned more in her previous job at a pipe factory but joined Amazon hoping it would provide an opportunity to grow.Ms. Bates was mystified that the company was urging Congress to match its pay efforts by raising the federal minimum wage to $15 an hour. “It looks to me like Amazon is admitting it’s only paying a minimum wage, and this is not a minimum-wage job,” she said. Amazon has said its starting wage is higher than $15 an hour in most of the country.Stuart Appelbaum, the president of the retail workers’ union, noted that Mr. Bezos could have given each of Amazon’s more than one million global employees last year a bonus larger than the annual pay of a warehouse worker just from the wealth he accumulated during the pandemic.All of which raises a question: Why didn’t Amazon, which regards unions as a threat, follow the example of Nissan and Mercedes and pay its Alabama employees more as a way to pre-empt a union?The company did not respond to a request to address that question.Mr. Appelbaum, the union president, said the company had underestimated its workers.“I think they took it for granted that we’d be out there for a few days leafleting, then go away,” he said. “They didn’t believe there was any possibility that we’d be able to get enough cards from employees to get to an election.” More

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    How Amazon Crushes Unions

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    Amazon’s warehouse in Chester, Va., where a union effort tried to organize about 30 facilities technicians in 2014 and 2015.Credit…Carlos Bernate for The New York TimesHow Amazon Crushes UnionsIn a secret settlement in Virginia, Amazon swore off threatening and intimidating workers. As the company confronts increased labor unrest, its tactics are under scrutiny.Amazon’s warehouse in Chester, Va., where a union effort tried to organize about 30 facilities technicians in 2014 and 2015.Credit…Carlos Bernate for The New York TimesSupported byContinue reading the main storyMarch 16, 2021, 5:00 a.m. ETRICHMOND, Va. — Five years ago, Amazon was compelled to post a “notice to employees” on the break-room walls of a warehouse in east-central Virginia.The notice was printed simply, in just two colors, and crammed with words. But for any worker who bothered to look closely, it was a remarkable declaration. Amazon listed 22 forms of behavior it said it would disavow, each beginning in capital letters: “WE WILL NOT.”“We will not threaten you with the loss of your job” if you are a union supporter, Amazon wrote, according to a photo of the notice reviewed by The New York Times. “We will not interrogate you” about the union or “engage in surveillance of you” while you participate in union activities. “We will not threaten you with unspecified reprisals” because you are a union supporter. We will not threaten to “get” union supporters.Amazon posted the list after the International Association of Machinists and Aerospace Workers accused it of doing those very things during a two-year-long push to unionize 30 facilities technicians at the warehouse in Chester, just south of Richmond. While Amazon did not admit to violations of labor laws, the company promised in a settlement with federal regulators to tell workers that it would rigorously obey the rules in the future.The employee notice and failed union effort, which have not previously been reported, are suddenly relevant as Amazon confronts increasing labor unrest in the United States. Over two decades, as the internet retailer mushroomed from a virtual bookstore into a $1.5 trillion behemoth, it forcefully — and successfully — resisted employee efforts to organize. Some workers in recent years agitated for change in Staten Island, Chicago, Sacramento and Minnesota, but the impact was negligible.Bill Hough Jr., a machinist at the Chester warehouse who led the union drive. Amazon fired him in 2016.Credit…Carlos Bernate for The New York TimesIn an employee notice, Amazon listed behavior it said it would disavow.The arrival of the coronavirus last year changed that. It turned Amazon into an essential resource for millions stuck at home and redefined the company’s relationship with its warehouse workers. Like many service industry employees, they were vulnerable to the virus. As society locked down, they were also less able to simply move on if they had issues with the job.Now Amazon faces a union vote at a warehouse in Bessemer, Ala. — the largest and most viable U.S. labor challenge in its history. Nearly 6,000 workers have until March 29 to decide whether to join the Retail, Wholesale and Department Store Union. A labor victory could energize workers in other U.S. communities, where Amazon has more than 800 warehouses employing more than 500,000 people.“This is happening in the toughest state, with the toughest company, at the toughest moment,” said Janice Fine, a professor of labor studies at Rutgers University. “If the union can prevail given those three facts, it will send a message that Amazon is organizable everywhere.”Even if the union does not prevail, “the history of unions is always about failing forward,” she said. “Workers trying, workers losing, workers trying again.”The effort in Chester, which The Times reconstructed with documents from regulators and the machinists’ union, as well as interviews with former facilities technicians at the warehouse and union officials, offers one of the fullest pictures of what encourages Amazon workers to open the door to a union — and what techniques the company uses to slam the door and nail it shut.The employee notice was a hollow victory for workers. The National Labor Relations Board, the federal agency that negotiated the settlement with Amazon, has no power to impose monetary penalties. Its enforcement remedies are few and weak, which means its ability to restrain anti-union employers from breaking the law is limited. The settlement was not publicized, so there were not even any public relations benefits.Amazon was the real winner. There have been no further attempts at a union in Chester.The tactics that Amazon used in Chester are surfacing elsewhere. The retail workers union said Amazon was trying to surveil employees in Bessemer and even changed a traffic signal to prevent organizers from approaching warehouse workers as they left the site. Last month, the New York attorney general said in a lawsuit that Amazon had retaliated against employees who tried to protest its pandemic safety measures as inadequate.Amazon declined to say whether it had complied with labor laws during the union drive in Chester in 2014 and 2015. In a statement, it said it was “compliant with the National Labor Relations Act in 2016” when it issued the employee notice, and “we continue to be compliant today.” It added in a different statement that it didn’t believe the union push in Alabama “represents the majority of our employees’ views.”The labor board declined to comment.The Chester settlement notice mentions one worker by name: Bill Hough Jr., a machinist who led the union drive. The notice said Amazon had issued a warning to Mr. Hough that he was on the verge of being fired. Amazon said it would rescind the warning.Six months later, in August 2016, Amazon fired him anyway.Mr. Hough (pronounced Huff) was in a hospital having knee surgery when Amazon called and said he had used up his medical leave. Since he couldn’t do his job, he said he was told, this was the end of the line.“There was no mercy, even after what they had done to me,” Mr. Hough, now 56, said. “That’s Amazon. If you can’t give 110 percent, you’re done.”Amazon declined to comment on Mr. Hough.No ConstraintsA truck at the warehouse in Chester. Amazon has been fending off attempts to unionize since at least 1999. Credit…Carlos Bernate for The New York TimesAmazon was founded on notions of speed, efficiency and hard work — lots of hard work. Placing his first help wanted ad in 1994, Jeff Bezos, Amazon’s founder, said he wanted engineers who could do their job “in about one-third the time that most competent people think possible.”Amazon managers openly warned recruits that if they liked things comfortable, this would be a difficult, perhaps impossible, job. For customer service representatives, it was difficult to keep up, according to media accounts and labor organizers. Overtime was mandatory. Supervisors sent emails with subject headings like “YOU CAN SLEEP WHEN YOU’RE DEAD.”In 1999, the reps, who numbered about 400, were targeted by a grass-roots group affiliated with the Communications Workers of America. Amazon mounted an all-out defense.If workers became anything less than docile, managers were told, it was a sign there could be union activity. Tipoffs included “hushed conversations” and “small group huddles breaking up in silence on the approach of the supervisor,” as well as increased complaints, growing aggressiveness and dawdling in the bathroom.Amazon was in sync with the larger culture. Unions were considered relics of the industrial past. Disruption was a virtue.“Twenty years ago, if you asked whether the government or workers should be able to put any constraints on companies, the answer always was ‘No constraints,’” said Marcus Courtney, a labor organizer on the 1999 Amazon campaign. “If companies wanted to push people 365 days a year, 24 hours a day, hats off to them.”When the dot-com bubble burst in 2000, Amazon lost some of its glow. For a time, its very existence was in question.This caused problems for the activists as well. The company reorganized and closed the customer service center, though Amazon said there was no connection with the union drive. The United Food and Commercial Workers Union and the Prewitt Organizing Fund, an independent group, made no inroads organizing Amazon’s 5,000 warehouse workers.A decade later, in 2011, came a low point in Amazon’s labor history. The Morning Call newspaper in Allentown, Pa., revealed that Amazon was hiring paramedics and ambulances during summer heat waves at a local warehouse. Workers who collapsed were removed with stretchers and wheelchairs and taken to hospitals.Amazon installed air conditioning but otherwise was undaunted. After the Great Recession in 2008, there was no lack of demand for its jobs — and no united protest about working conditions. In Europe, where unions are stronger, there were sporadic strikes. In the United States, isolated warehouse walkouts drew no more than a handful of workers.The MachinistMr. Hough said he had felt pressured to cut corners to keep conveyor belts running.Credit…Ruth Fremson for The New York TimesMr. Hough worked as an industrial machinist at a Reynolds aluminum mill in Richmond for 24 years. He once saw a worker lose four fingers when a steel roller fell unexpectedly. Incidents like that made a deep impression on him: Never approach equipment casually.Reynolds closed the plant in the Great Recession, when Mr. Hough was in his mid-40s. Being in the machinists guild cushioned the blow, but he needed another job. After a long spell of unemployment, he joined Amazon in 2013.The Chester warehouse, the size of several aircraft carriers, had opened a year earlier, part of Amazon’s multibillion-dollar push to put fulfillment centers everywhere. Mr. Hough worked on the conveyor belts bringing in the goods.At first, he received generally good marks. “He has a great attitude and does not participate in negative comments or situations,” Amazon said in a March 2014 performance review. “He gets along with all the other technicians.”But Mr. Hough said he had felt pressured to cut corners to keep the belts running. Amazon prided itself on getting purchases to customers quickly, and when conveyor belts were down that mission was in jeopardy. He once protested restarting a belt while he was still working on it.“Quit your bitching,” Mr. Hough said his manager, Bryon Frye, had told him, twice.“That sent me down the wrong road,” Mr. Hough said.Bryon Frye’s tweet about Amazon union campaigns.Credit…TwitterMr. Frye, who declined to comment, no longer works for Amazon. On Twitter last month, he responded to a news story that said Amazon was hiring former F.B.I. agents to deal with worker activism, counterfeiting and antitrust issues.“This doesn’t shock me,” he wrote. “They do some wild things.”The Union DriveMembers of the Retail, Wholesale and Department Store Union distributed literature outside the Alabama warehouse where Amazon workers are voting on whether to join the union.Credit…Bob Miller for The New York TimesIn 2014, Mr. Hough and five other technicians approached the International Association of Machinists and Aerospace Workers. A unionization effort was already taking place with the technicians at an Amazon warehouse in Middletown, Del. If either succeeded, it would be the first for Amazon.The elections for a union would be conducted by the National Labor Relations Board. The first step was to measure interest. At least 18 of the 30 technicians in Chester returned cards indicating their willingness to be represented by the union.“It was not too difficult to sign people up,” said Russell Wade, a union organizer there. “But once the word leaked out to Amazon, they put the afterburners on, as employers do. Then the workers started losing interest. Amazon spent oodles of money to scare the hell out of employees.”The board scheduled an election for March 4, 2015. A simple majority of votes cast would establish union representation.Amazon brought in an Employee Resource Center team — basically, its human resources department — to reverse any momentum. A former technician at the warehouse, who declined to be named for fear of retaliation, said the reps on the team followed workers around, pretending to be friendly but only seeking to know their position on the union drive.If safety was the biggest issue for the technicians, there were also concerns over pay equity — machinists said they were paid different amounts for doing the same job — and about their lack of control over their fate. Part of Mr. Hough’s pitch was that a union would make management less arbitrary.“One guy, all I remember is his name was Bob,” he said. “They paged Bob to the control room, and the next thing I saw was Bob coming down the steps. He had taken off his work vest. I said, ‘Bob, where are you going?’ He said, ‘They terminated me.’ I didn’t ask why. That’s the way it was.”Several technicians said they recalled being told at a meeting, “You vote for a union, every one of you will be looking for a job tomorrow.” At another, the most outspoken union supporters were described as “a cancer and a disease to Amazon and the facility,” according to Mr. Hough and a union memo. (In a filing to the labor board, Amazon said it had investigated the incident and “concluded that it could not be substantiated.”)Mr. Hough, a cancer survivor, said the reference had offended him. He declined to attend another meeting run by that manager. He said he had known in any case what she was going to say: that the union was canceling the election because it thought it would lose. Amazon had triumphed.On March 30, 2015, Mr. Hough received a written warning from Mr. Frye, his manager.“Your behavior has been called out by peers/leaders as having a negative impact,” it said. Included under “insubordination” was a refusal to attend the Amazon victory announcement. Another incident, Amazon said, could result in termination.The machinists union filed a complaint with the labor board in July 2015 alleging unfair labor practices by Amazon, including surveilling, threatening and “informing employees that it would be futile to vote for union representation.” Mr. Hough spent eight hours that summer giving his testimony. While labor activists and unions generally consider the board to be heavily tilted in favor of employers, union officials said a formal protest would at least show Chester technicians that someone was fighting for them.In early 2016, Amazon settled with the board. The main thrust of the two-page settlement was that Amazon would post an employee notice promising good behavior while admitting nothing.Wilma Liebman, a member of the labor board from 1997 to 2011, examined the employee notice at the request of The Times. “What is unusual to my eye is how extensive Amazon’s pledges were, and how specific,” she said. “While the company did not have to admit guilt, this list offers a picture of what likely was going on.”Amazon was required to post the notice “in all places where notices to employees are customarily posted” in Chester for 60 days, the labor board said.From the machinists union’s point of view, it wasn’t much of a punishment.“This posting was basically a slap on the wrist for the violations that Amazon committed, which included lies, coercion, threats and intimidation,” said Vinny Addeo, the union’s director of organizing.Another reason for filing an unfair labor practices claim was that the union hoped to restart its efforts with a potentially chastened company. But most of the employees who supported the Chester drive quit.“They were intimidated,” Mr. Wade, the union organizer, said.Mr. Hough was beset by ill health during his years at Amazon. Radiation treatment for his cancer prompted several strokes. His wife, Susan, had health problems, too. Mr. Hough said he wondered how much the unionization struggle contributed to their problems. He added that he didn’t know whom to trust.After leaving Amazon, Mr. Hough began driving trucks, at first long haul and later a dump truck. It paid less, but he said he was at peace.Maximum Green TimesNearly 6,000 workers in Bessemer have until March 29 to decide whether to join the union.Credit…Wes Frazer for The New York TimesWhen Amazon vanquished the 2014 union drive in Delaware, the retailer said it was a victory for “open lines of direct communication between managers and associates.”One place Amazon developed that direct communication was in its warehouse bathrooms under what it called its “inSTALLments” program. The inSTALLments were informational sheets that offered, for instance, factoids about Mr. Bezos, the timing of meetings and random warnings, such as this one about unpaid time off: “If you go negative, your employment status will be reviewed for termination.”Amazon’s “inSTALLments” program used postings in warehouse bathrooms to communicate with workers.Credit…The New York TimesAs the union drive heated up in Bessemer, the direct communication naturally was about that. “Where will your dues go?” Amazon asked in one stall posting, which circulated on social media. Another proclaimed: “Unions can’t. We can.”Amazon also set up a website to tell workers that they would have to skip dinner and school supplies to pay their union dues.In December, a pro-union group discovered, Amazon asked county officials to increase “maximum green times” on the warehouse stoplight to clear the parking lot faster. This made it difficult for union canvassers to approach potential voters as they left work. Amazon declined to comment.Last month, President Biden weighed in.“There should be no intimidation, no coercion, no threats, no anti-union propaganda,” he said in a video that never mentioned Amazon but referred to “workers in Alabama” deciding whether to organize a union. “You know, every worker should have a free and fair choice to join a union. The law guarantees that choice.”Owning 25 HatsMr. Hough, in an interview before the pandemic, said part of him wanted to forget what had happened at Amazon. Why dwell on defeat? He threw away all the papers from the union drive. He never saw the employee notice because he was recovering from a stroke.But he has not forgiven the retailer.“You’re only going to step on me one time,” he said, sitting in his home in the outskirts of Richmond.Amazon’s customers just don’t know how miserable a job there can be, he suggested.“I guarantee you, if their child had to work there, they’d think twice before purchasing things,” he said.Ms. Hough, sitting next to him, had a bleaker view.“The customers don’t care about unions. They don’t care about the workers. They just want their packages,” she said.As if on cue, their son, Brody, came in. He was 20, an appliance technician. His mother told him there was a package for him on his bed. It was from Amazon, a fishing hat. It cost $25, Brody said, half the price on the manufacturer’s website.“I order from Amazon anything I can find that is cheaper,” Brody said. That adds up to a lot of hats, about 25. “I’ve never worked for Amazon. I can’t hate them,” he said.Ms. Hough looked at her husband. “If your own son doesn’t care,” she asked, not unkindly, “how are you going to get the American public to care?”The pandemic helped change that, bringing safety issues at Amazon to the forefront. In a Feb. 16 suit against Amazon, the New York attorney general, Letitia James, said the company continued last year to track and discipline employees based on their productivity rates. That meant workers had limited time to protect themselves from the virus. The suit said Amazon retaliated against those who complained, sending a “chilling message” to all its workers. Amazon has denied the allegations.Last week, regional Canadian authorities also ordered thousands of workers at an Amazon warehouse near Toronto to quarantine themselves, effectively closing the facility. Some 240 workers recently tested positive for the virus there, a government spokeswoman said, even as the rate of infection in the area fell. Amazon said it was appealing the decision.Alabama is now the big test. Mr. Hough worries the union supporters will be crushed.“They will fall to threats or think, ‘I won’t have a job, Amazon will replace me,’” he said by phone this month. “When a company can do things to you in secret, it’s real hard to withstand.”Still, he added, “I’m hoping for the best. More power to them.”AdvertisementContinue reading the main story More

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    When Amazon Raises Wages, Local Companies Follow Suit

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    #masthead-section-label, #masthead-bar-one { display: none }The Jobs CrisisCurrent Unemployment RateWhen the Checks Run OutThe Economy in 9 ChartsThe First 6 MonthsAdvertisementContinue reading the main storySupported byContinue reading the main storyWhen Amazon Raises Wages, Local Companies Follow SuitNew research suggests that when big companies increase wages, they drive up pay in the places where they operate — without a notable loss in jobs.An Amazon fulfillment center in Kent, Wash. The company lifted starting pay to $15 an hour three years ago.Credit…Ruth Fremson/The New York TimesBen Casselman and March 5, 2021, 5:00 a.m. ETAmazon has embarked on an advertising blitz this winter, urging Congress to follow the company’s lead and raise the federal minimum wage to $15 an hour. American workers “simply can’t wait” for higher pay, the company said in a recent blog post.In the areas where Amazon operates, though, low-wage workers at other businesses have seen significant wage growth since 2018, beyond what they otherwise might have expected, and not because of new minimum-wage laws. The gains are a direct result of Amazon’s corporate decision to increase starting pay to $15 an hour three years ago, which appears to have lifted pay for low-wage workers in other local companies as well, according to new research from economists at the University of California, Berkeley, and Brandeis University.The findings have broad implications for the battle over the federal minimum wage, which has stayed at $7.25 an hour for more than a decade, and which Democrats are trying to raise to $15 by 2025. For one, the research illustrates how difficult it can be for low-wage workers to command higher pay in the modern American economy — until a powerful outside actor, like a large employer or a government, intervenes.Most directly, there is little evidence in the paper that raising the minimum wage would lead to significant job loss, even in low-cost rural areas, a finding consistent with several recent studies. Other research, including a recent report from the Congressional Budget Office, has found a larger negative effect on jobs, although still smaller than many economists believed in the past.The authors of the latest study — Ellora Derenoncourt of Berkeley and Clemens Noelke and David Weil of Brandeis — studied Amazon, Walmart and Target, which operate in areas where wages tend to be low. But even in those places, the researchers found, wage increases by the large corporate employers appear to drive up wages without driving down employment.“When you have major changes in the wage policies of large actors in the labor market, this has ripple effects,” Dr. Derenoncourt said in an interview.At the same time, Dr. Weil added, “the sky doesn’t fall.”The researchers used the federal government’s Current Population Survey, supplemented by evidence from the online job posting site Glassdoor, to estimate what happened in communities where Amazon, Target or Walmart operate after those companies increased entry-level wages in recent years. What they found in many ways confounds traditional economic models: Raising pay did not put the large companies at a disadvantage. Instead, it gave local workers a reason to push their own employers for a raise.At Mooyah Burgers, Fries and Shakes, a chain with 87 locations in 21 states, the Amazon effect is clear. Employees routinely go to their managers and point out that Amazon is hiring at a significant pay increase.“When you have those corporations paying that much, it just puts pressure on the smaller business owners,” said Tony Darden, Mooyah’s president. Franchisees can try to have good relationships with their employees, he said, but there is only so far that can go.“At some point, it always comes down to money,” he said. “And so if there’s an employee who has the ability to make two or three or four or five bucks an hour more at another location, they go directly to the owner or to their manager.”Many restaurants will grant the pay increase, Mr. Darden said, but at the cost of giving workers fewer hours or hiring fewer employees — a common contention among small-business owners. But while that may be true in individual cases, the Berkeley and Brandeis researchers found little evidence of broad-based job cuts as wages rose. A 10 percent increase in the base wage at a company like Amazon, they found, translated into a 1.7 percent loss in local jobs — and a 0.4 percent loss in jobs for low-wage workers.On raising wages, an Amazon executive said, “We knew that by doing it, we would encourage other employers to do the same.”Credit…Gabriella Demczuk for The New York TimesA mounting body of research in recent years suggests that labor markets don’t work in practice the way they do in some economic models. Employees often have less information about their worth than employers, or face greater risks to changing jobs, or can’t readily move between employers the way a pure market assumes. These “frictions,” in economic jargon, often benefit employers over employees, pushing down wages below where supply and demand suggest they should be.But that leaves room for other forces — in the form of political pressure, organized bargaining or a minimum wage — to push wages up.“In a very simple supply-and-demand, competitive market, firms are just paying the market wage,” said Arindrajit Dube, a University of Massachusetts economist who has studied the minimum wage. In reality, he said, wages “are shaped by market forces but also by norms, pressure as well as policies.”Dr. Dube said that in the 1980s, the spread of Walmart and other national retailers helped push down wages, as they displaced smaller, often unionized local chains. Now big national retailers seem to be helping to push wages up.Many small-business owners do not welcome the pressure.Tad Mollnhauer, who runs two printing and shipping retail stores near Orlando, Fla., said entry-level workers typically earned about $10 to $12 an hour. But these days, anyone paying that rate risks losing workers to Amazon. (The state’s minimum wage is under $9 an hour but will rise to $10 this year under a referendum approved by voters in November. The minimum will rise a dollar a year after that, hitting $15 an hour in 2026.)Mr. Mollnhauer said it was hard for small companies like his to match Amazon’s pay.“Their network and their resources are spread out around the country,” allowing Amazon to pay above-market wages in some places, he said. “For me, as two stores, I can’t do that.”Jay Carney, a senior vice president for Amazon, said the company was conscious of the impact its policy might have on other employers. “We knew that by doing it, we would encourage other employers to do the same, and if that happened then it would put upward pressure on wages in general, which would be good,” he said.But he rejected suggestions that Amazon is using its political power to hurt its rivals. “We have no power to force anybody to do this, only Congress does,” he said.Jared Bernstein, a member of the White House Council of Economic Advisers, said the paper showed both the potential spillover effects for workers from raising the federal minimum wage — which studies suggest would help workers who earn more than the minimum also get raises — and the limits of private company efforts.“There’s just no way to be sure to reach the tens of millions of hardworking but poorly paid workers without significantly raising the national minimum wage,” he said.No Republican senator supports the $15-an-hour bill that Amazon has endorsed, and several Democrats have reservations about it. Given those headwinds and an adverse ruling from the Senate parliamentarian, the provision will almost certainly not make it into the final version of President Biden’s relief package.But the researchers’ findings suggest that there are other ways to raise pay for low-wage workers. Political pressure on big companies can lift pay not just for their direct employees but also for other workers in the same area. Other policies could mimic that effect: If the federal government requires its contractors to pay more, as Mr. Biden has directed by executive order, it could help increase wages throughout the private sector.Many people are skeptical of Amazon’s motives in pushing the federal $15-an-hour effort, noting that the company faces scrutiny from Democrats over its treatment of workers, accusations that it has stifled competition and its moves to fight unionization.Other business groups accused Amazon of using its scale and political influence to squeeze smaller competitors.A Walmart in Charlottesville, Va. Minimum-wage increases in major cities have spread to other areas through companies like Walmart.Credit…Eze Amos for The New York Times“Amazon is clearly doing very well in the current economy,” said Misty Chally, executive director of the Coalition of Franchisee Associations, which represents franchise owners. But gyms, hair salons and many other businesses that compete with Amazon are “all struggling to stay in business right now,” she said.Mr. Dube said he had concerns about the power of companies like Amazon and Walmart. But the upward pressure they put on wages, he said, wasn’t one of them.The “Amazon effect” on wages comes as no surprise to organizers of the Fight for $15 campaign. From its start in 2012, the movement sought to put pressure on private employers, not just elected officials.The two fed each other, said Mary Kay Henry, president of the Service Employees International Union, which has backed the campaign: Minimum-wage increases in big cities encouraged companies like Walmart and Target to raise pay nationwide, which in turn prompted more minimum-wage increases and helped fuel the effort to raise the federal wage floor.Policies like Amazon’s are particularly significant in places where the minimum-wage argument has never gained much of a foothold, like the South.“It shifts the politics of minimum wage in those corners of the country,” Ms. Henry said. “It busts the myth it can’t happen here.”AdvertisementContinue reading the main story More

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    Amazon Workers’ Union Drive Reaches Far Beyond Alabama

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    AdvertisementContinue reading the main storySupported byContinue reading the main storyAmazon Workers’ Union Drive Reaches Far Beyond AlabamaA vote on whether to form a union at the e-commerce giant’s warehouse in Bessemer, Ala., has become a labor showdown, drawing the attention of N.F.L. players, and the White House.The votes on whether to form a union at the Amazon fulfillment center in Bessemer, Ala., need to be in by the end of the month.Credit…Bob Miller for The New York TimesMichael Corkery and March 2, 2021, 5:00 a.m. ETPlayers from the National Football League were among the first to voice their support. Then came Stacey Abrams, the Democratic star who helped turn Georgia blue in the 2020 election. The actor Danny Glover traveled to Bessemer, Ala., for a news conference last week, where he invoked the Rev. Dr. Martin Luther King Jr.’s pro-union leanings in urging workers at Amazon’s warehouse there to organize. Tina Fey has weighed in, and so has Senator Bernie Sanders.Then on Sunday, President Biden issued a resounding declaration of solidarity with the workers now voting on whether to form a union at Amazon’s Bessemer warehouse, without mentioning the company by name. Posted to his official Twitter account, his video was one of the most forceful statements in support of unionizing by an American president in recent memory.“Every worker should have a free and fair choice to join a union,” Mr. Biden said.A unionizing campaign that had deliberately stayed under the radar for months has in recent days blossomed into a star-studded showdown to influence the workers. On one side is the Retail, Wholesale and Department Store Union and its many pro-labor allies in the worlds of politics, sports and Hollywood. On the other is one of the world’s dominant companies, an e-commerce behemoth that has warded off previous unionizing efforts at its U.S. facilities over its more than 25-year history.The attention is turning this union vote into a referendum not just on working conditions at the Bessemer warehouse, which employs 5,800, but on the plight of low-wage employees and workers of color in particular. Many of the employees in the Alabama warehouse are Black, a fact that the union organizers have highlighted in their campaign seeking to link the vote to the struggle for civil rights in the South.The retail workers union has a long history of organizing Black workers in the poultry and food production industries, helping them gain basic benefits like paid time off and safety protections and a means to economic security. The union is portraying its efforts in Bessemer as part of that legacy.“This is an organizing campaign in the right-to-work South during the pandemic at one of the largest companies in the world,” said Benjamin Sachs, a professor of labor and industry at Harvard Law School. “The significance of a union victory there really couldn’t be overstated.”The warehouse workers began voting by mail on Feb. 8 and the ballots are due at the end of this month. A union can form if a majority of the votes cast favor such a move.Amazon has posted signs in the facility and held meetings with workers, urging them not to unionize.Credit…Wes Frazer for The New York TimesAmazon’s countercampaign, both inside the warehouse and on a national stage, has zeroed in on pure economics: that its starting wage is $15 an hour, plus benefits. That is far more than its competitors in Alabama, where the minimum wage is $7.25 an hour.“It’s important that employees understand the facts of joining a union,” Heather Knox, an Amazon spokeswoman, said in a statement. “We will provide education about that and the election process so they can make an informed decision. If the union vote passes, it will impact everyone at the site and it’s important associates understand what that means for them and their day-to-day life working at Amazon.” The company, which went on a huge hiring spree last year as homebound customers sent its sales to a record $386 billion, recorded more than $22 billion in profit.In Alabama, some workers are growing weary of the process. One employee recently posted on Facebook: “This union stuff getting on my nerves. Let it be March 30th already!!!”The situation is getting testy, with union leaders accusing Amazon of a series of “union-busting” tactics.The company has posted signs across the warehouse, next to hand sanitizing stations and even in bathroom stalls. It sends regular texts and emails, pointing out the problems with unions. It posts photos of workers in Bessemer on the internal company app saying how much they love Amazon.At certain training sessions, company representatives have pointed out the cost of union dues. When some workers have asked pointed questions in the meetings, the Amazon representatives followed up with them at their work stations re-emphasizing the downsides of unions, employees and organizers say. The meetings stopped once the voting started, but the signs are still up, said Jennifer Bates, a pro-union worker in the warehouse.In this charged atmosphere, even routine things have become suspect. The union has raised questions about the changing of the timing of a traffic light near the warehouse where labor organizers try to talk to the workers as they are stopped in their vehicles while leaving the facility.Amazon did ask county officials in mid-December to change the light’s timing, though there is no evidence in the county records that the change was made to thwart the union. “Traffic for Amazon is backing up around shift change,” the public records stated as the reason the county altered the light.Amazon regularly navigates traffic concerns around its facilities, and wasting unpaid time in congested parking lots is a frequent gripe of Amazon workers in Facebook groups.But the retail workers’ union president, Stuart Appelbaum, questioned the timing of the request in Bessemer, coming as it did at the height of the organizing. “When the light was red we could answer questions and have a brief conversation with workers,” he said.Last week, the union questioned an offer the company made to the Alabama warehouse workers to pay them at least $1,000 if they quit by late March. Mr. Appelbaum accused the company of trying to entice employees to leave before the vote ended.“They are trying to remove the most likely union supporters from their work force by bribing them to leave and give up their vote,” he said in an interview.But “The Offer,” as it’s known among employees, was the same that Amazon made to workers at all of its warehouses around the country. It is an annual program that lets the company reduce its head count after the peak holiday shopping season without layoffs. It has been in place since at least 2014, when Jeff Bezos wrote about it in a shareholder letter.“Once a year, we offer to pay our associates to quit,” Mr. Bezos said at the time. “In the long run, an employee staying somewhere they don’t want to be isn’t healthy for the employee or the company.”Mr. Appelbaum was not swayed. He said he believed that Amazon had chosen to make the offer across all of its warehouses when it did in order to help eliminate possible “yes” votes in Bessemer.President Biden stopped short of urging the Amazon workers to unionize, but his statement instantly raised the stakes of an already momentous campaign.“Let me be really clear,” Mr. Biden said. “It’s not up to me to decide whether anyone should join a union. But let me be even more clear: It’s not up to an employer to decide that, either. The choice to join a union is up to the workers. Full stop.”He added, “Workers in Alabama and all across America are voting on whether to organize a union in their workplace. This is vitally important — a vitally important choice.” And it is one, he said, that should be made without intimidation or threats.Workers around the country, including Seattle, have expressed support for the union vote in Alabama.Credit…Jason Redmond/Agence France-Presse — Getty ImagesDespite the union’s suspicions, it has not filed any formal complaints with the National Labor Relations Board, Mr. Appelbaum said. Typically, unions can raise objections to a company’s tactics before an election and the labor board can step in.If a complaint were to be filed, the labor board could potentially determine that the election is invalid because of Amazon’s actions. But after working for months to build support inside and outside the Amazon warehouse, the last thing the union wants is for the labor board to intervene and rule that the election must be held again. The voting has already been taking place in Bessemer for nearly a month.Mr. Sachs, of Harvard Law School, said that despite Mr. Biden’s admonishments of companies’ interfering in elections, the current labor law does allow Amazon to hold certain mandatory meetings with workers to discuss why they shouldn’t unionize and enables the company to post anti-union messages around the workplace.“It is very helpful that the president is calling out these tactics, but what we need is a new labor law to stop companies from interfering,” he said.It is rare for such a large union election to be held by mail. Over Amazon’s objections, the labor board required a mail-in vote after determining that federal election monitors would be at risk of contracting Covid-19 if they had to travel to Bessemer to oversee in-person voting.By pushing back aggressively against the union, Amazon risks angering Democrats in Washington, many of whom are already calling for more antitrust scrutiny of big tech companies, whose businesses have grown even larger in the pandemic. Amazon has mounted a public campaign supporting legislation to raise the federal minimum wage to $15 an hour, buying prominent ads in The New York Times, The Washington Post and other publications.In his video on Sunday, President Biden specifically mentioned how unions can help “Black and brown workers” and vulnerable workers struggling during the economic crisis brought on by the pandemic.Ms. Bates, 48, one of the leaders of the union drive, started working at the Bessemer warehouse in May.She said she felt insulted by some of Amazon’s anti-union efforts, particularly the company’s statements to the staff that they would be required to pay nearly $500 in union dues every year. Because Alabama is a right-to-work state, there is no such requirement that a union member pay dues.“It angers me a little bit because I feel like they know the truth and they won’t tell the truth and are taking advantage because they know employees come from a community that is looked on as Black and low income,” said Ms. Bates, who is Black. “It felt really horrible that you would stand there and mislead people intentionally. Give them the facts and let them decide.”AdvertisementContinue reading the main story More

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    ‘One Property at a Time’: A City Tries to Revive Without Gentrifying

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    #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesSee Your Local RiskVaccine InformationWuhan, One Year LaterMarjorie Perry, a contractor, is one of the builders turning an abandoned bank into an apartment building and poets cafe.Credit…Bryan Anselm for The New York Times‘One Property at a Time’: A City Tries to Revive Without GentrifyingNeighborhoods in Newark are beginning to see a flurry of redevelopment, a decade after the city’s downtown gained vogue.Marjorie Perry, a contractor, is one of the builders turning an abandoned bank into an apartment building and poets cafe.Credit…Bryan Anselm for The New York TimesSupported byContinue reading the main storyFeb. 2, 2021, 5:00 a.m. ETNEWARK — Construction workers in the South Ward of Newark, one of New Jersey’s most distressed areas, are busy converting a long-abandoned bank into an apartment building and poets cafe.A decrepit mansion in the Central Ward built by a Newark beer baron before the turn of the 20th century is being revamped as a “makerhood,” a first-of-its-kind co-working residential and retail space.Siree Morris, a developer, recently finished erecting six three-bedroom apartments on a formerly vacant lot. Next up: condos made from shipping containers and an affordable-housing complex named for his slain brother, Michael, on the street where they grew up.While the downtown corridors of Newark, a poor industrial city burdened by decades of disinvestment, have been on the rebound for years, much of the rest of the city had been largely left behind.But now even the city’s far-flung residential neighborhoods are in the midst of a slow recovery.The transformation, fueled largely by a push to expand affordable housing and homeownership in this city of renters, is part of a deliberate strategy with an ambitious goal: erasing Newark’s long legacy of blight without pushing out residents, 86 percent of whom are Black or Latino.“It’s coming up the hill, into the inner city,” Arnita Rivers, a Newark resident who runs a variety store and barbershop and also works as a housing contractor, said of redevelopment.Credit…Bryan Anselm for The New York TimesThe challenge of avoiding gentrification while revitalizing a city once synonymous with urban decay is steep.More than a quarter of Newark’s 282,000 residents live in poverty and only 22 percent own homes. Many neighborhoods are still reeling from the 2018 discovery of elevated levels of lead in tap water.Streets are pockmarked by an estimated 2,000 vacant lots, haunting reminders of the middle-class exodus that began before the city erupted in flames during five days of deadly unrest in 1967 and accelerated in the decades that followed.And Newark, New Jersey’s largest city, is now struggling under the catastrophic weight of the coronavirus: One in 342 residents has died from virus-related complications.But there are also signs of hope. Side streets are alive with forklifts and hard hats. Older men gather on corners, sharing stories of days gone by and expressing optimism for even the most overlooked swaths of the city. A breakfast for homegrown entrepreneurs — an extension of monthly “men’s meetings” initiated by Newark’s mayor, Ras J. Baraka — attracted 2,500 just before the start of the pandemic.“You take it one property at a time, one parcel at a time,” said Mr. Morris, 38, who has continued to build throughout the pandemic. “That’s the only way to rebuild a community.”Fifteen miles from the heart of Manhattan, Newark’s downtown commercial district has successfully lured housing developers, a Nike factory store, a Whole Foods Market and the corporate headquarters for Audible, Amazon’s audiobook and podcast service.But in the last five years, more than 3,500 units of affordable housing have also been built or are underway, much of it outside downtown, city records show. Newark sold almost double the number of abandoned parcels at auction in 2020 as it did in 2019, and the average price of land — none of it downtown — was about 30 percent higher. Between 2015 and 2020, major crime, including murder, robbery and assault, plummeted by 40 percent.“This right here is extremely personal to me,” said Siree Morris, a lifelong resident of Newark whose company recently finished construction of two new apartment buildings on a formerly vacant lot.Credit…Bryan Anselm for The New York TimesBig neighborhood projects, like a $100 million expansion of Beth Israel Medical Center, are moving forward alongside smaller ones, including a 51-unit housing complex for seniors and the renovation of three homes that will be sold to residents of public housing using Section 8 vouchers.Even the brutal economic fallout of the pandemic is not expected to erase Newark’s gains.“They took advantage of the growth in downtown, and the strength, and they put effort into all of the wards,” said Doug Goldmacher, an analyst with Moody’s Investors Service, a financial rating agency.The Coronavirus Outbreak More

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    Amazon Union Drive Takes Hold in Unlikely Place

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    AdvertisementContinue reading the main storySupported byContinue reading the main storyAmazon Union Drive Takes Hold in Unlikely PlaceWorkers at a warehouse in Bessemer, Ala., are to vote next month on whether to unionize, the largest and most viable effort of its kind involving the technology giant.Union organizers talk to Amazon workers when they are stopped at a traffic light outside the warehouse in Alabama.Credit…Bob Miller for The New York TimesMichael Corkery and Jan. 25, 2021, 5:00 a.m. ETThe largest, most viable effort to unionize Amazon in many years began last summer not in a union stronghold like New York or Michigan, but at a Fairfield Inn outside of Birmingham, in the right-to-work state of Alabama.It was late in the summer and a group of employees from a nearby Amazon warehouse contacted an organizer in the Retail Wholesale and Department Store Union. They were fed up, they said, with the way the online retailer tracked their productivity, and wanted to discuss unionizing.As the workers arrived at the hotel, union officials watched the parking lot to make sure they had not been followed.Since that clandestine meeting, the unionizing campaign at Amazon’s fulfillment center in Bessemer, Ala., has moved faster and further than just about anyone has expected. By late December, more than 2,000 workers signed cards indicating they wanted an election, the union said The National Labor Relations Board then determined there was “sufficient” interest in a union election among the warehouse’s roughly 5,800 workers, which is a significant bar to hit with the government agency that oversees the voting process. About a week ago, the board announced that voting by mail would start next month and continue through the end of March.Just getting to an election is an achievement for unions, which have failed for years to break into Amazon. But persuading the workers to actually vote for a union is a bigger challenge. The company has begun to counter organizing efforts by arguing that a union would saddle workers with dues without any guarantee of higher wages or better benefits.This will be the first union election involving the company in the United States since a small group of technical workers at a warehouse in Delaware voted against forming a union in 2014.Much has changed since that vote seven years ago that has allowed organized labor to make inroads with Amazon employees in a place like Alabama.Most of that change had come in the past year during the pandemic, as workers from meatpacking plants to grocery stores have spoken out, often through their unions, about the lack of protective gear or inadequate pay.The retail union has pointed to its success representing workers during the pandemic as a selling point in Bessemer.“The pandemic changed the way many people feel about their employers,” said Stuart Appelbaum, the retail union’s president. “Many workers see the benefit of having a collective voice.”Union organizers are also building their campaign around the themes of the Black Lives Matter movement. Many of the employees at the Amazon warehouse are Black, a fact that the retail union has used to focus on issues of racial equality and empowerment. And leading the organizing effort are about two dozen unionized workers from nearby warehouses and poultry plants, most of whom are also Black.Michael Foster has been helping to organize union support at Amazon’s warehouse. “I am telling them they are part of a movement that is world wide,” he said.Credit…Bob Miller for The New York TimesSince Oct. 20, the poultry workers have been standing outside the Amazon gates every day starting at 4:30 a.m., urging workers stopped at a traffic light to join a union.“I am telling them they are part of a movement that is world wide,” said Michael Foster, a Black organizer in Bessemer, who works in a poultry plant “I want them to know that we are important and we do matter.”Unions have been forming in other unlikely places this year. This month, more than 400 engineers and other workers at Google formed a union, a rare move in the mostly anti-union tech industry. The Google union is meant primarily to bolster employee activism, while the union being proposed at Amazon in Bessemer would eventually be able to negotiate a contract and would seek to influence wages and working conditions.The unionization effort comes as Amazon has embarked on a hiring spree during the pandemic. Amazon now has more than 1.2 million employees globally, up more than 50 percent from a year earlier.But the company has also begun to face pressure from its corporate employees, over climate change and other issues, and from many warehouse workers around the country who have felt emboldened to speak up. The attention is only likely to increase with Amazon on pace to surpass Walmart as the country’s largest employer in a few years.Business & EconomyLatest UpdatesUpdated Jan. 22, 2021, 7:23 p.m. ETThe New Yorker returns an award for its story on a Japanese rent-a-family business.Biden’s top economic adviser warns the economy will be in ‘a much worse place’ without more aid.United Airlines might require its employees to take the vaccine.Success at the Bessemer warehouse, which only opened in March, could inspire workers in the booming e-commerce industry more broadly, said Nelson Lichtenstein, a labor historian at the University of California, Santa Barbara. “If you can do it in Alabama, we can do it here in Southern California for sure,” he said. “It would have a huge ripple effect.”In a statement, Heather Knox, an Amazon spokeswoman, said the company did not believe that the union “represents the majority of our employees’ views,” adding, “Our employees choose to work at Amazon because we offer some of the best jobs available everywhere we hire, and we encourage anyone to compare our total compensation package, health benefits and workplace environment to any other company with similar jobs.”The company created a website that suggests that the union’s dues — which could total about $9.25 a week for a full-time employee — will leave workers with less money to pay for school supplies.“Why not save the money and get the books, gifts and things you want?” the website says.An early version of the website included photos of happy-looking young workers, including the image of a Black man leaping in the air that appeared to be from a free stock photo website. On the site the man and a woman are pictured in an image labeled “excited african-american couple jumping, having fun.”Asked about the site, Amazon called it “educational” and said it “helps employees understand the facts of joining a union.” (As of last Tuesday evening, the company had removed the stock photos including that of the leaping man.)Race has often been at the heart of unionizing campaigns in the South. A century ago, multiracial steel and coal miners unions around Birmingham were a “cockpit of labor militancy,” Mr. Lichtenstein said.In the 1960s, unions — including the Retail Wholesale and Department Store Union — gave Black workers a venue to assert their civil rights and gain more equality in the workplace.Organizing was dangerous work. A Black organizer with the retail union in Alabama named Henry Jenkins recalled being shot at and receiving death threats at his home. At one point, a bomb was found in his car outside a church in Selma. Mr. Jenkins died in November 2011 after an illness.The retail union has been influential in the Northeast, where it represents workers at Macy’s and Bloomingdales. But its strength has also grown in the South, particularly in poultry, an industry with traditionally dangerous jobs and a work force that with many Black employees.This spring, the union was active in publicizing deadly virus outbreaks in poultry plants. The union’s mid-South Council president, Randy Hadley, called out the industry for “egregious inaction” in providing basic protections for workers.“Some people do not expect us to succeed,” said Josh Brewer, the lead organizer in Bessemer. “I believe we can do it.”Credit…Bob Miller for The New York TimesBuoyed by its rising profile during the pandemic, the union trained a group of workers to start organizing additional poultry facilities across the South. When the Amazon workers reached out, the union, which had failed to gain traction at an Amazon warehouse in Staten Island two years earlier, decided to redirect the poultry workers to the Bessemer warehouse. Unlike in past campaigns, the union decided it would keep mostly quiet during the Alabama organizing drive.“Some people do not expect us to succeed,” said Josh Brewer, who is leading the organizing effort. “I believe we can do it.”On the evening of Oct. 20, two dozen poultry and warehouse workers showed up outside the Amazon gates.Mona Darby, who has spent the past 33 years processing chickens, immediately started approaching the Amazon workers in their cars as they headed home. Ms. Darby grew up in Alabama, one of 18 children. She started working as a housekeeper for local doctors and lawyers when she was 15. But she wanted more stable work, health care and retirement benefits so she got a job in a chicken plant.Today, the starting wages in Alabama’s unionized poultry plants are about the same as those at Amazon. (The average hourly wage at the Bessemer warehouse is $15.30). But Ms. Darby said the union provided her with protections and job security that other jobs lack.“You can pay me $25 an hour, but if you don’t treat me well what’s that money worth?” she said.On that first evening at the Bessemer warehouse, Ms. Darby said a white man approached her and said Amazon didn’t want a union and he didn’t want her “Black ass on our property.”“You are going to see my Black ass out here all day, every day,” Ms. Darby said she responded.Mona Darby, who works at a poultry plant, said the union there provided her with protections and job security.Credit…Bob Miller for The New York TimesMs. Darby said she saw the man remove his name badge before he walked up to her. She told a police officer present what the man said, but he didn’t take notes.The Bessemer police said they had no record of the incident. Amazon declined to comment.Amazon pushed for the union vote to be held in person, despite the coronavirus. The National Labor Relations Board ruled against that.Credit…Bob Miller for The New York TimesOn Dec. 18, lawyers for Amazon and the union gathered on Zoom to discuss how many workers would be part of the potential union.The hearing dragged on for days, as Amazon’s lawyer asked questions in minute detail about the warehouse, until the federal hearing officer eventually cut the testimony short.One issue Amazon has insisted on is that the election be held in person at the warehouse. The company even offered to rent out hotel rooms for the federal election monitors to help them isolate from contracting the virus in an area with an infection rate of 17 percent. The N.L.R.B. ruled against in-person voting on Jan. 15, stating that a company paying for hotel rooms for government employees was not a good idea. On Friday, Amazon asked for a stay of the mail-in election, arguing that infection rates were declining and insisting that voting should take place at the warehouse.Until all the votes are cast, Mr. Foster and the other poultry and warehouse workers are planning to stay outside the Amazon gates. He said some of the Amazon workers were fearful of being seen talking to the organizers at the stop light.On a few occasions, Mr. Foster has said a prayer with workers before the light changes to green.“We want to show them we are not leaving them until this is done,” he said.AdvertisementContinue reading the main story More

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    Is Rivian the Next Tesla? Investors Bet Big on Electric Truck Maker

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    The Rivian factory in Normal, Ill. The company is hoping to cash in on the same opportunity that Tesla identified and has advanced: the electrification of transportation.Credit…Lyndon French for The New York TimesSkip to contentSkip to site indexThe Next Tesla? Investors Bet Big on Electric Truck Maker RivianRivian, which has raised another $2.65 billion, plans to sell a pickup truck and S.U.V. it has worked on for more than a decade.The Rivian factory in Normal, Ill. The company is hoping to cash in on the same opportunity that Tesla identified and has advanced: the electrification of transportation.Credit…Lyndon French for The New York TimesSupported byContinue reading the main storyJan. 19, 2021Updated 6:24 p.m. ETPLYMOUTH, Mich. — It’s hard to imagine any company matching Tesla’s rocketlike rise. But if any electric car start-up could aspire to be the “next Tesla,” it would be Rivian.Founded in 2009, Rivian is preparing to produce an electric pickup truck and a sport utility vehicle. Both models are supposed to be on the road by the summer and will be made in a former Mitsubishi plant in Illinois. Rivian is also developing electric delivery trucks for Amazon.What distinguishes Rivian, however, is its extraordinary roster of investors. Amazon is not just a customer; it has put a lot of money into Rivian. Others backers include BlackRock, Fidelity, T. Rowe Price and Ford Motor, which plans to introduce a vehicle based on Rivian’s technology.The latest injection of capital was revealed Tuesday, when Rivian said it had raised $2.65 billion from a group led by funds and accounts advised by T. Rowe Price. Other investors included Fidelity and Amazon’s Climate Pledge Fund. The investment round values the company at more than $27 billion, and brings the total investment in the company to $8 billion since the beginning of 2019.“We have been eagerly anticipating the arrival of 2021 and, with it, the exhilaration of Rivian starting to deliver its revolutionary products to customers,” Joseph Fath, a T. Rowe Price portfolio manager, said in a statement.A hefty war chest is no guarantee of success, and producing a new car from scratch is a monumental task for established automakers, let alone a start-up.“The process of creating something like this is anything but simple,” RJ Scaringe, Rivian’s founder and chief executive, said in an interview. “It’s a complex orchestra, several thousand parts coming from several hundred suppliers. It’s definitely far more complex than people think and far more complex than I thought it would be.”Rivian is hoping to cash in on the same opportunity that Tesla identified and has advanced — the electrification of transportation. To most auto executives, there is now little doubt this is the way the world is going. In the last five years, Tesla has gone from making 50,000 cars annually to making 10 times that many last year. General Motors, Ford, Volkswagen and others are investing billions to develop electric cars and trucks that eventually will begin supplanting fossil fuel models.“In my lifetime, we are going to go from a world where electric vehicles are a tiny subset of the market to where electric vehicles represent 100 percent of the market,” Mr. Scaringe said. “Some existing players will be able to make that transition, but it also creates opportunities for new companies to enter that space.”Another big trend reshaping the auto industry is autonomous cars. On Tuesday, Cruise, a unit of G.M. that is working in that area, announced it had raised $2 billion from Microsoft, G.M., Honda and other investors. Rivian and Tesla are also working on automated-driving technology.Rivian is different from Tesla in several respects. Tesla so far has grown by selling sporty sedans, a type of vehicle that is falling out of favor with consumers. Tesla intends to begin making an oddly angular, futuristic pickup, the Cybertruck, this year. But it hasn’t yet put heavy focus on the trucks and S.U.V.s that make up 75 percent of the passenger vehicle market in the United States.Rivian, on the other hand, is focused on producing “adventure” vehicles that owners can take off road, an approach that means Rivian won’t often compete head to head with Tesla.“There’s a perception that this is winner take all, and that’s just wrong,” Mr. Scaringe said. “Consumers need to have different brands, different flavors. Our success is not at all mutually exclusive to others’ success.”Business & EconomyLatest UpdatesUpdated Jan. 19, 2021, 6:30 p.m. ETSmall-business relief loans start flowing again, with $5 billion worth approved in the first week.Representative introduces a resolution to recognize the journalists who covered the Capitol attack.Retailers drop MyPillow amid fallout from comments by its pro-Trump founder.Rebecca Puck Stair is the kind of car buyer Rivian hopes to attract. A movie location scout in Albuquerque, she has been interested in buying an electric vehicle for a few years, but needs high ground clearance and four-wheel drive for assignments that take her into the desert.“That didn’t exist in the market,” she said. “A Tesla doesn’t fit my needs.”About a year ago, she heard about Rivian for the first time and put a deposit down on an S.U.V. the next day — like Tesla, the company does not plan to sell through dealers. Ms. Stair has seen the Cybertruck, but the design is not for her. “It just screams ‘obnoxious guy truck,’” she said, laughing.Rivian’s truck and S.U.V., which start at $67,500, look more conventional, as if they could have been designed by Land Rover.Unlike Tesla, which is trying to grow quickly, Rivian is taking measured steps. Last year, before the pandemic struck, it said it planned to make around 20,000 pickup trucks and S.U.V.s in 2021 and some 40,000 in 2022. It has not yet offered an updated outlook. It is aiming to have production capacity of 250,000 vehicles a year at its plant in Normal, Ill., by the middle of the decade. The company has not disclosed how many orders it has taken, but a spokeswoman said it had customers lined up for all the vehicles it expected to make this year.And even as other auto start-ups go public by merging with shell companies that have bundles of cash and stock market listings, Rivian is not eager to do so. “We want to launch, demonstrate our capability and let our performance speak for itself before we can look into being public,” Mr. Scaringe, 38, said.That difference in the approaches favored by Rivian and Tesla probably has a lot to do with the men that lead the companies.RJ Scaringe, Rivian’s chief executive, is an engineer who tried to slash his carbon footprint at M.I.T. by getting around by foot and bike, taking cold showers and doing his laundry by hand.Credit…Lyndon French for The New York TimesTesla’s chief executive, Elon Musk, is a disruptive force unlike anything the auto industry had seen in decades, perhaps not since Henry Ford. He has powered his company to stock market heights while attracting an army of fans. But Mr. Musk has also courted controversy — he has called government efforts to limit the spread of the coronavirus “fascist.” His Twitter posts have gotten him and Tesla into legal jams, including with the Securities and Exchange Commission. Not long ago, he claimed Tesla would have a million self-driving cars on the road in 2020, but the company has yet to demonstrate a fully autonomous vehicle.Mr. Scaringe, by contrast, is a bookish engineer, with a Ph.D. from the Massachusetts Institute of Technology. He once tried to slash his personal carbon footprint at M.I.T. by getting around by foot and bike, taking cold showers and doing his laundry by hand. His Twitter feed is so tame that one recent post was about the car color preferences of his children (blue).In the second half of this year, Rivian hopes to start producing its Amazon delivery van in large numbers. Amazon is already testing prototypes on the road. The retail giant has made the trucks a central part of its strategy to reduce emissions, placing an order for 10,000 to be delivered by the end of 2022.Rivian still has a lot of work to do. On a recent afternoon, engineers at its labs in Plymouth were tinkering with a half-dozen R1T pickups in various stages of development. A few were hand-built models with screws visible in door wells — telltale signs of early prototypes. One was a more refined version that seemed a step or two away from the production version.“People are working all hours,” said Ryan Kalb, a special projects engineer. “We are trying to move quickly, and we want to be doing it. We all want to see this happen.”It was a similar story about 300 miles down the road at Rivian’s plant in Normal, a 3.4 million-square-foot factory that the company bought for $16 million in 2017. Since then, the plant has undergone an overhaul that cost more than $1 billion. Freshly painted and brightly lit, it has a long, winding assembly line where the R1T and R1S S.U.V. will be made. At the moment, only a few are built each day.Michael Ramsey, a Gartner analyst, said he was eager to see if Rivian could avoid the mistakes that hamstrung Tesla a few years ago, when Mr. Musk rushed to ramp up production of the Model 3 sedan only to end up in what he called “manufacturing hell.”“Is Rivian going to be a giant future competitor to Ford and G.M.? I don’t know,” Mr. Ramsey said. “But they have all these mega-investments. They have a strategic partner in Ford. They have contracts with Amazon. Of all the E.V. start-ups, they seem to have the best chance of making it.”AdvertisementContinue reading the main story More

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    Retailing’s Tumultuous Year Began Before the Pandemic

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    AdvertisementContinue reading the main storySupported byContinue reading the main storyRetailing’s Tumultuous Year Began Before the PandemicThe industry employs millions of people, and the upheaval it experienced played out in the lives of many Americans.Houston Premium Outlets, a mall in Cypress, Texas, on Black Friday.Credit…Go Nakamura for The New York TimesSapna Maheshwari and Dec. 29, 2020, 5:00 a.m. ETThe retail industry was in the midst of a transformation before 2020. But the onset of the pandemic accelerated that change, fundamentally reordering how and where people shop, and rippling across the broader economy.Many stores closed for good, as chains cut physical locations or filed for bankruptcy, displacing everyone from highly paid executives to hourly workers. Amazon grew even more powerful and unavoidable as millions of people bought goods online during lockdowns. The divide between essential businesses allowed to stay open and nonessential ones forced to close drove shoppers to big-box chains like Walmart, Target and Dick’s and worsened struggling department stores’ woes. The apparel industry and a slew of malls were battered as millions of Americans stayed home and a litany of dress-up events, from proms to weddings, were canceled or postponed.This year’s civil unrest and its thorny issues for American society also hit retailers. Businesses closed because of protests over George Floyd’s killing by a white police officer, and they reckoned with their own failings when it came to race. The challenges faced by working parents, including the cost and availability of basic child care during the pandemic, were keenly felt by women working at stores from CVS to Bloomingdale’s. And there were questions around the treatment of workers, as retailers and their backers treated employees shoddily during bankruptcies or failed to offer hazard pay or adequate notifications about workplace Covid-19 outbreaks.Many Americans felt the retail upheaval — the industry is the second-biggest private employment sector in the United States — and some shared their experiences this year with The New York Times.Joyce Bonaime of Cabazon, Calif., is collecting unemployment benefits for the first time after working in retailing since the 1970s.Credit…Maggie Shannon for The New York Times‘That’s what I did my whole life’Joyce Bonaime, a 63-year-old in Cabazon, Calif., has worked in retailing since the 1970s. In the past 14 months, she became one of many store employees whose lives were upended by bankruptcies — first at Barneys New York and more recently at Brooks Brothers.Ms. Bonaime had spent about 10 years as a full-time stock coordinator for a Barneys outlet at Desert Hills Premium Outlets near her home, overseeing the shipping and receiving of designer wares, when the retailer filed for bankruptcy and liquidated late last year.“Barneys treated people very badly at the end there,” Ms. Bonaime said. The retailer, she said, sent inconsistent messages about severance payments and the timing of store closures, which limited people from finding other jobs just before the holiday shopping season.After Barneys, Ms. Bonaime secured a full-time stockroom position at Brooks Brothers in the same outlet mall. But the pandemic forced the store to temporarily close in March, and she was furloughed. She anticipated returning once the store reopened this summer. But Ms. Bonaime’s job was terminated this month and lost her health benefits. She is now collecting unemployment checks for the first time in her life.When Ms. Bonaime started her career, working at shoe stores and completing a management training program at one chain, retailers had a different relationship with employees and communities, she said.“We went through training on the bones in the foot and the muscles; we knew a lot about our industry,” she said. “We would reach out to local high schools and work with the cheerleading team and find a shoe they liked for outfits and give them a discount and make sure they had the right sizes.”Ms. Bonaime, who is getting by right now, feels stuck. She had planned to work a few more years before retiring, but her options are limited. Businesses at the outlet mall are struggling — and it was already hard to interview last year as a woman in her 60s, she said. Amazon is hiring, but she is concerned about the risk of accidents in a warehouse.“This pandemic just changes everything because I would have no problem getting a job otherwise,” she said. “I just don’t think there’s going to be anything in retail, and that’s what I did my whole life.”Jeffrey Kalinsky, the founder of Nordstrom’s Jeffrey boutiques, says he is not ready to retire from retailing.Credit…Maggie Steber for The New York Times‘I was collateral damage’Soon after the pandemic hit, Nordstrom said it would permanently close its three high-end Jeffrey boutiques, which were founded by Jeffrey Kalinsky and acquired by the retailer in 2005. Mr. Kalinsky, a Nordstrom executive who had focused on bringing designer apparel to the retailer, retired as part of the move.The Jeffrey stores, in New York, Atlanta and Palo Alto, Calif., had dressed the likes of Gwyneth Paltrow and even been lampooned on “Saturday Night Live.” The first location, in Atlanta, would have celebrated its 30th anniversary in August.Mr. Kalinsky, 58, said in an interview that he was recovering from Covid-19 at the end of March when he became aware that the stores might remain shut after a temporary closure.“It felt like I had a gun pointed at me,” he said. “The folks I always dealt with at Nordstrom were always very transparent, and I can only surmise that they were looking at how to position themselves to get through this period — and I was collateral damage.”He had once told the Jeffrey staff that it was like the original cast in a Broadway musical, performing at an “amazing level” for customers every day. The hardest part of this year was telling employees about the closing, he said.“That day was probably the most difficult, emotional day of my entire life,” he said. “I felt just gutted. It was indescribable.” Employees have told him that they “miss the merchandise, they miss the edit, they miss the specialness.”His goal was for Jeffrey to carry the best merchandise but “sell it an environment that was very democratic,” he said. “I wanted to showcase it all and wanted it all to be next to each other. I wanted the friction of Gucci next to Dries next to Comme des Garçons. I wanted to feel the tension in a good way because that, in my opinion, is how the perfect closet is.”Business & EconomyLatest UpdatesUpdated Dec. 23, 2020, 8:59 a.m. ETExtension of federal jobless benefits may not prevent a brief lapse.Frustration rises at Britain’s ports over clearing a logjam of thousands of trucks.How the aid bill changes the food stamp program.Mr. Kalinsky hopes to find a job designing for an American brand, saying he is not prepared to retire from retailing. He wonders if Jeffrey could have survived the pandemic by working with vendors and landlords.“We had an impressive business, a wonderful clientele, and we would have been fine — but did we have a piggy bank for Covid? No,” he said.Trent Griffin-Braaf shifted his passenger van business in Albany, N.Y., to e-commerce deliveries.Credit…David Steinberg for The New York TimesA man with a vanTrent Griffin-Braaf started this year feeling more confident than ever. The transportation company he created to ferry guests from hotels in the Albany, N.Y., area to local attractions like the racetrack in Saratoga Springs was catching on.But when the coronavirus shut down tourism, weddings and conferences, Mr. Griffin-Braaf’s passenger vans were idled and his business was in jeopardy. “We were really in a rough place,” he said.In the late summer, his company became a carrier for Amazon and shifted to e-commerce deliveries. His team of 70 drivers and other staff include immigrants from Africa and India, workers laid off from restaurants, a struggling nail-salon owner and recent college grads “just trying to figure it out” during the pandemic.His drivers cover a 150-mile radius around Albany, including many rural areas where the number of Amazon shoppers is increasing, he said. “All you see around here is Amazon,” he said. “Come work for Amazon.”Many of his drivers were earning 10 hours of overtime a week during the peak holiday season. “I feel blessed to be busy, because so many people aren’t right now,” he said.Mr. Griffin-Braaf, 36, has not given up on passenger vans. He has started driving workers living in parts of Albany with limited public transportation to their jobs at distribution centers and other businesses far from bus lines.On the weekends, he volunteers the vans to drive families to visit loved ones in upstate prisons. Mr. Griffin-Braaf, who served time in prison years ago, said that long term, he hoped to have tractor-trailers to move e-commerce packages across the country, and to offer van service in other “transportation deserts” around the state so people could get to work.“I know how hard it is to get a job if you don’t have a car, and I have seen how hard it is when you don’t get visits in prison,” he said. “I have lived these things.”Lauren Jackson owns and runs the Hair Hive in Buffalo with her sisters.Credit…Mustafa Hussain for The New York Times‘We are glad you are here’Lauren Jackson and her two sisters inadvertently chose the wrong time to open the first Black-owned beauty supply store in their hometown, Buffalo: March 7, two weeks before the state ordered them to shut down.So the sisters reopened it as an “essential business,” stocking hand sanitizers, masks and other pandemic necessities. Their store, the Hair Hive, reopened in early April, which helped them build a customer base while competitors stayed closed.“Everything happens for a reason,” said Ms. Jackson, 28.She and her sisters, Danielle Jackson and Brianna Lannie, had talked about opening the store for several years. It is five minutes from their childhood home on the east side of Buffalo, a predominantly Black neighborhood where their parents still live.The sisters were initially intimidated about trying to break into the well-established industry.“We didn’t want to tell anyone so they wouldn’t say, ‘You can’t compete with them,’” Ms. Jackson said. “We didn’t even tell our parents.”The sisters got a loan from a family member and another from a Buffalo nonprofit. Lauren Jackson said she had watched other Black-owned businesses in her neighborhood come and go over the years, including salons, barbershops and restaurants that often closed because the younger generation didn’t want to take over after the founding family members retired. Ms. Jackson wants to break that trend.“A lot of people come into the store because we are Black-owned,” she said. “They feel comfortable knowing we can relate with what’s going on with their hair. They tell us, ‘We are glad you are here.’”Feisal Ahmed returned to his sales job at Macy’s in Manhattan after a four-month shutdown.Credit…Haruka Sakaguchi for The New York Times‘Scared of what might be coming’In June, as the first wave of the coronavirus was finally coming under control in New York, Feisal Ahmed got a call from his manager at Macy’s.Would he like to return to his job selling luxury watches when the store in Herald Square reopened? “I am already there,” he told his boss. “Put me first in line.”Mr. Ahmed was in his early 20s and a recent emigrant from Bangladesh when he started working at Macy’s in 1994. He met his wife in the store, was able to make a down payment on a house in Astoria, Queens, and saved up enough money to start his own laundry, which he eventually sold.“I owe a lot to this job,” he said.But after an initial feeling of relief and excitement to return to work after four months of lockdowns, reality set in for Mr. Ahmed. He has gone some days without selling a single watch, for which he would earn a commission.Last week, business picked up for a few days, driven by last-minute Christmas shopping, but it was nowhere near a normal holiday pace. “The pandemic, job security — people are scared to spend money,” he said.Still, Mr. Ahmed feels lucky. In New York City, retail jobs make up 9 percent of private-sector employment, and many have been slow to return. At stores selling clothing and clothing accessories, employment is down more than 40 percent from a year ago, according to a recent report by the state comptroller’s office.Mr. Ahmed said that as a member of the Retail, Wholesale and Department Store Union, he had certain job protections. But he worries about what the winter will bring, as the pandemic continues to keep many shoppers away.“Employees are scared of what might be coming,” he said.AdvertisementContinue reading the main story More