Saudi Press

Saudi Arabia and the world
Wednesday, Jul 23, 2025

After Amazon workers’ union victory the Fed must stop tipping the scales for bosses

After Amazon workers’ union victory the Fed must stop tipping the scales for bosses

A post-Covid jobs recovery has strengthened workers’ hand – companies posting record profits don’t need government to slow the economy
On Friday, Amazon – America’s wealthiest, most powerful and fiercest anti-union corporation, with the second-largest workforce in the nation (union-busting Walmart being the largest), lost out to a group of warehouse workers in New York who voted to form a union.

If anyone had any doubts about Amazon’s determination to prevent this from ever happening, its scorched-earth anti-union campaign last fall in its Bessemer, Alabama, warehouse should have put those doubts to rest.

In New York, Amazon used every tool it had used in Alabama. Many of them are illegal under the National Labor Relations Act but Amazon couldn’t care less. It’s rich enough to pay any fine or bear any public relations hit.

The company has repeatedly fired workers who speak out about unsafe working conditions or who even suggest that workers need a voice.

As its corporate coffers bulge with profits – and its founder and executive chairman practices conspicuous consumption on the scale not seen since the robber barons of the late 19th century – Amazon has become the poster child for 21st-century corporate capitalism run amok.

Much of the credit for Friday’s victory over Amazon goes to Christian Smalls, whom Amazon fired in the spring of 2020 for speaking out about the firm’s failure to protect its warehouse workers from Covid. Smalls refused to back down. He went back and organized a union, with extraordinary skill and tenacity.

Smalls had something else working in his favor, which brings me to Friday’s superb jobs report from the Bureau of Labor Statistics. The report showed that the economy continues to roar back to life from the Covid recession.

With consumer demand soaring, employers are desperate to hire. This has given American workers more bargaining clout than they’ve had in decades. Wages have climbed 5.6% over the past year.

The acute demand for workers has bolstered the courage of workers to demand better pay and working conditions from even the most virulently anti-union corporations in America, such as Amazon and Starbucks.

Is this something to worry about? Not at all. American workers haven’t had much of a raise in over four decades. Most of the economy’s gains have gone to the top.

Besides, inflation is running so high that even a 5.6% wage gain over the past year is minimal in terms of real purchasing power.

But corporate America believes these wage gains are contributing to inflation. As the New York Times solemnly reported, the wage gains “could heat up price increases”.

This is pure rubbish. Unfortunately, the chair of the Federal Reserve Board, Jerome Powell, believes it. He worries that “the labor market is extremely tight” and to “an unhealthy level”.

As a result, the Fed is on the way to raising interest rates repeatedly in order to slow the economy and reduce the bargaining leverage of American workers.

Pause here to consider this: the commerce department reported on Wednesday that corporate profits are at a 70-year high. You read that right. Not since 1952 have corporations done as well as they are now doing.

Amazon’s profits are in the stratosphere, but it’s not just Amazon. Across the board, American corporations are flush with cash.

Although they are paying higher costs (including higher wages), they’ve still managed to increase their profits. How? They have enough pricing power to pass on those higher costs to consumers, and even add some more for themselves.

When American corporations are overflowing with money like this, why would wage gains heat up price increases, as the Times reports? In a healthy economy, corporations would not be passing on higher costs – including higher wages – to their consumers. They’d be paying the higher wages out of their profits.

But that’s not happening. Corporations are using their record profits to buy back enormous amounts of their own stock to keep their share prices high, instead.

The labor market isn’t “unhealthily” tight, as Jerome Powell asserts; corporations are unhealthily fat. Workers don’t have too much power; corporations do.

The extraordinary win of the workers of Amazon’s Staten Island warehouse is cause for celebration. Let’s hope it marks the beginning of a renewal of worker power in America.

Yet the reality is that corporate America doesn’t want to give up any of its record profits to its workers. If it can’t fight off unions directly, it will do so indirectly by blaming inflation on wage increases, and then cheer on the Fed as it slows the economy just enough to eliminate American workers’ new bargaining clout.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
×