- Morgan Stanley analysts saw Amazon.com Inc's (NASDAQ:AMZN) unionization decision driving costs, CNBC reports.
- Morgan Stanley analysts saw Amazon's 2023 operating expenses increasing by $203 million on hiking JFK8 employees' hourly wages to $29. It served a tiny fraction of Amazon's annual operating costs, which reached $445 billion in 2021.
- Every 1% of Amazon's front-line workforce that unionize would lead to an incremental $150 million of annual [operating expenses], the report cited the analysts.
- Also Read: Read How Amazon's 2022 Warehouse Union Election Set It Apart From 2021
- Amazon employed 750,000 workers across its U.S. fulfillment and transportation operations.
- The Amazon Labor Union called for Amazon to increase hourly wages for all workers to a minimum of $30 an hour. The union also demanded more paid breaks and vacations.
- The report noted that Amazon accused the National Labor Relations Board of improperly influencing the vote.
- After a hard-fought election, the union will have to negotiate a contract with Amazon.
- Price Action: AMZN shares traded higher by 2.03% at $3,337.13 on the last check Monday.
- Photo via Wikimedia Commons
