Amazon.com Inc. (NASDAQ:AMZN) has filed a lawsuit against the New York State Public Employment Relations Board (PERB) to prevent the enforcement of a new labor law.
Amazon Sues New York Over Union Oversight Law
Amazon filed a complaint in a Brooklyn federal court on Monday, alleging that New York’s Senate Bill 8034A, signed by Governor Kathy Hochul on September 5, is an “unconstitutional power grab,” reported Reuters. The law allows PERB to take over the NLRB’s primary authority in addressing union organizing, collective bargaining, and workplace disputes. The e-commerce giant claims that the law infringes on the National Labor Relations Board’s (NLRB) jurisdiction.
Check out the current price of AMZN stock here.
Amazon’s lawsuit argues that the state law “presumes PERB jurisdiction over every private-sector employer until the NLRB gets a court to hold otherwise,” effectively creating a conflict between state and federal authority.
The company's lawsuit comes after PERB invoked the law to challenge the August 9 firing of Brima Sylla, a union vice president and employee at Amazon's JFK8 warehouse in Staten Island, even as the NLRB was conducting its own review.
The e-commerce giant, which had 1.56 million full- and part-time employees at the end of the year, is not the only entity challenging the law. The NLRB also sued New York in federal court on September 12 to block the law’s enforcement.
Labor Scrutiny Amid Automation Push
The legal battle between Amazon and New York comes at a time when the e-commerce giant is facing significant changes in its workforce. Venture capitalist Jason Calacanis recently predicted that Amazon will replace all factory workers and drivers with robots by 2030.
Moreover, Amazon’s labor practices have been under scrutiny, with the company currently facing a Federal Trade Commission (FTC) trial over its Prime subscription cancellation practices. These legal battles and potential changes to its workforce could have significant implications for Amazon’s future operations and labor relations.
Benzinga's Edge Rankings place Amazon in the 63rd percentile for quality and the 92nd percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
READ NEXT:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
