The Consequences of Amazon’s Union Vote
This week, we talk about the Amazon union vote currently under way in Alabama and how some Wall Street firms profited off the Texan winter storm.
Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Maitane Sardon and Dieter Holger. Want to get our newsletter every Wednesday? Hit the subscribe button in the upper right corner and please share with your friends.
Hi, Maitane. Both executives and the general public are closely watching a warehouse in Bessemer, Alabama, where Amazon.com is facing a unionization vote this week.
A “yes” vote would be a big deal for Amazon, the U.S.’s second-largest employer after Walmart. None of the e-commerce giant’s roughly 950,000 employees in the U.S. are unionized.
It would also be a big deal for Alabama. The state has a unionization rate of 8%, below the U.S. average of nearly 11%. The share of unionized workers in the country has been trending down for decades. (See the chart below.)
Public support for unions has been going up. Between 2009 and 2020, Americans who approved of unions rose to 65% from 48%, according to a 2020 Gallup poll.
The union vote would also make a difference for Black workers. Union organizers say that most of the employees at the Alabama warehouse are Black. Across the country, Amazon says nearly 27% of its employees are Black.
We could know the results of the vote as early as Thursday. Now let’s talk about how some investors profited off the winter storm in Texas. Big name Wall Street hedge funds and money managers made millions after they took large stakes in power plants in the state.
February’s subfreezing temperatures led to blackouts, but some natural-gas plants were still able to sell energy, and at often higher prices—at one point, $9,000 per megawatt hour. At least 30 lawsuits related to natural-gas contracts have been filed in the U.S. as a result, with billions of dollars potentially at stake
Before the storm hit, plant managers at Temple Generation I and TexGen Power took steps to brace for the cold front. Some plants were built in recent years to withstand extremely cold temperatures.
Outrage remains over the high prices power providers were able to charge. In response, power providers said they were able to keep the lights on, while investors told The Wall Street Journal that they helped strengthen Texas’s energy infrastructure. Now Texas lawmakers are debating how to address the huge costs from the storm. It is possible that energy providers could face stricter rules down the road.
Share your thoughts below, email us or catch us on Twitter. Your words could appear in our next edition! Have a great week and remember to wash your hands.👋
Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music and skateboarding (but I suck). dieter.holger@wsj.com @dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com @sardonmaitane
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com @CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com @violian.tammy