Arbitrator Imposes First Binding Union Contract for Amazon Workers in North America
An independent arbitrator has imposed a three-year collective agreement on approximately 800 Amazon workers in Delta, B.C., marking the first binding union contract for the company in North America. The deal includes wage increases to $29 per hour, while Amazon has criticized the process and signaled potential legal action.
An independent arbitrator imposed a three-year collective agreement on Friday covering approximately 800 Amazon workers in Delta, British Columbia, establishing the first binding union contract for the retail giant’s workforce in North America. Both Unifor, the union representing the employees, and Amazon confirmed the arbitrator's decision.
The imposed agreement includes wage increases that will bring hourly rates to $29 by the conclusion of the three-year deal. It also provides enhanced severance protections and grants an additional week of vacation to workers who have completed 10 years of service.
The path to the imposed contract followed a ruling in August by British Columbia’s Labour Relations Board, which decided in favour of using binding arbitration to settle the labour dispute between the company and the union.
Unifor national president Lana Payne praised the courage of the workers who organized against Amazon, noting they did so despite the company's efforts to deter them. The union views the outcome as a victory for workers standing up to a powerful employer.
Amazon strongly criticized the arbitration process. Company vice-president J. Ofori Agboka described it as "improper, unfair and defies common sense." Agboka argued that the requirement to pay union dues could result in workers taking home less money than before and noted that associates were not allowed to vote on whether to accept the contract terms. He indicated that Amazon would take its concerns to court if necessary.