Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse
Workers picket in front of an Amazon Logistic Station on December 19, 2024 in Skokie Illinois.
Scott Olson | Getty Images
Italo Medelius-Marsano was a law student at North Carolina Central University in 2022, when he took a job at an Amazon warehouse near the city of Raleigh to earn some extra cash.
The past month has been unlike any other during his three-year tenure at the company. Now, when he shows up for his shift at the shipping dock, Medelius-Marsano says he’s met with flyers and mounted TVs urging him to “vote no,” as well as QR codes on workstations that lead to an anti-union website. During meetings, managers discourage unionization.
The facility in the suburb of Garner, North Carolina, employs roughly 4,700 workers and is the site of Amazon’s latest labor showdown. Workers at the site are voting this week on whether to join Carolina Amazonians United for Solidarity (CAUSE), a grassroots union made up of current and former employees.
CAUSE organizers started the group in 2022 in an effort to boost wages and improve working conditions. Voting at the site, known as RDU1, wraps up on Saturday.
Workers at RDU1 and other facilities told CNBC that Amazon is increasingly using digital tools to deter employees from unionizing. That includes messaging through the company’s app and workstation computers. There’s also automated software and handheld package scanners used to track employee performance inside the warehouse, so the company knows when staffers are working or doing something else.
“You cannot get away from the anti-union propaganda or being surveilled, because when you walk into work they have cameras all over the building,” said Medelius-Marsano, who is an organizer with CAUSE. “You can’t get into work without scanning a badge or logging into a machine. That’s how they track you.”
CAUSE representatives have also made their pitch to RDU1 employees. The union has set up a “CAUSE HQ” tent across the street from the warehouse and disbursed leaflets in the facility’s break room.
Amazon, the nation’s second-largest private employer, has long sought to keep unions out of its ranks. The strategy succeeded in the U.S. until 2022, when workers at a Staten Island warehouse voted to join the Amazon Labor Union. Last month, workers at a Whole Foods store in Philadelphia voted to join the United Food and Commercial Workers union.
In December, Amazon delivery and warehouse workers at nine facilities went on strike, organized by the Teamsters, during the height of the holiday shopping season to push the company to the bargaining table. The strike ended on Christmas Eve.
Union elections at other Amazon warehouses in New York have finished in defeat in recent years, while the results of a union drive at an Alabama facility are being contested. Organizers have pointed to Amazon’s near-constant monitoring of employees as both a catalyst and a deterrent of union campaigns.
The NLRB has 343 open or settled unfair labor practice charges filed with the agency against Amazon, its subsidiaries and contracted delivery companies in the U.S., a spokesperson said.
Amazon has argued in legal filings that the NLRB, which issues complaints against companies or unions determined to have violated labor law, is unconstitutional. Elon Musk’s SpaceX, Starbucks and Trader Joe’s have also made similar claims that challenge the agency’s authority.
Amazon spokeswoman Eileen Hards said the company’s employees can choose whether or not to join a union.
“We believe that both decisions should be equally protected which is why we talk openly, candidly and respectfully about these topics, actively sharing facts with employees so they can use that information to make an informed decision,” Hards said in a statement.
Hards said the company doesn’t retaliate against employees for union activities, and called claims that its employee monitoring discourages them from unionizing “odd.”
“The site is operating, so employees are still expected to perform their usual work,” Hards said in a statement. “Further, the camera technology in our facilities isn’t to surveil employees — it’s to help guide the flow of goods through the facilities and ensure security and safety of both employees and inventory.”
Orin Starn, a CAUSE organizer who was fired by Amazon early last year for violating the company’s drug and alcohol policy, called Amazon’s employee tracking “algorithmic management of labor.” Starn is an anthropology professor at Duke University who began working undercover at RDU1 in 2023 to conduct research for a book on Amazon.
“Where 100 years ago in a factory you would’ve had a supervisor come around to tell you if you’re slacking off, now in a modern warehouse like Amazon, you’re tracked digitally through a scanner,” Starn said.
‘Just the algorithm’
John Logan, a professor and director of labor and employment studies at San Francisco State University, told CNBC in an email that Amazon has “perfected the weaponization” of technology, workplace surveillance and algorithmic management during anti-union campaigns “more than any other company.”
While Amazon may be more sophisticated than others, “the use of data analytics is becoming far more common in anti-union campaigns across the country,” Logan said. He added that it’s “extremely common” for companies to try to improve working conditions or sweeten employee perks during a union drive.
Other academics are paying equally close attention to the issue. In a research paper published last week, Northwestern University PhD candidate Teke Wiggin explored Amazon’s use of algorithms and digital devices at the company’s BHM1 warehouse in Bessemer, Alabama.
“The black box and lack of accountability that comes with algorithmic management makes it harder for a worker or activist to decide if they’re being retaliated against,” Wiggin said in an interview. “Maybe their schedule changes a little bit, work feels harder than it used to, the employer can say that has nothing to do with us, that’s just the algorithm. But we have no idea if the algorithm has changed.”
People protest in support of the unionizing efforts of the Alabama Amazon workers, in Los Angeles, California, March 22, 2021.
Lucy Nicholson | Reuters
Some Amazon employees see the situation differently. Storm Smith works at RDU1 as a process assistant, which involves monitoring worker productivity and safety. Amazon referred Smith to CNBC in the course of reporting this story.
Amazon’s workplace controls, like rate and time off task, are “part of the job,” Smith said. Staffers are “always welcome” to ask her what their rate is, she added.
“For my people, if I see your rate is not where it’s supposed to be, I’ll come up to you and say, ‘Hey, this is your rate, are you feeling alright? Is there anything I could get you to get your rate up? Like a snack, a drink, whatever,” Smith said.
Wiggin interviewed 42 BHM1 employees following the first election in 2021, and reviewed NLRB records of hearings. The facility employed more than 5,800 workers at the time of the union drive.
The NLRB last November ordered a third union vote to be held at BHM1 after finding Amazon improperly interfered in two previous elections. The company has denied wrongdoing.
Amazon staffers told Wiggin that during the union campaign, the company tweaked some performance expectations to “improve working conditions” and dissuade them from unionizing. One employee said these changes were partly why he voted against the union, according to the study.
Workers at an Amazon warehouse outside St. Louis, Missouri, filed an NLRB complaint in May. The employees accused Amazon of using “intrusive algorithms” that track when they’re working to discourage them from organizing, The Guardian reported. The employees withdrew their complaint on Tuesday.
Hards said Amazon doesn’t require employees to meet specific productivity speeds or targets.
Lawmakers zeroed in on how surveillance can impact organizing efforts in recent years. In 2022, the former NLRB general counsel issued a memo calling for the group to address corporate use of “omnipresent surveillance and other algorithmic-management tools” to disrupt organizing efforts. The following year, the Biden Administration put out a request for information on automated worker surveillance and management, noting that the systems can pose risks to employees, including “their rights to form or join a labor union.”
However, the Trump administration is attempting to purge the NLRB, with the president firing the chair of the organization on his first day in office last month. Trump has put Musk, a notorious opponent of unions, in charge of the so-called Department of Government Efficiency, with the goal of cutting government costs and slashing regulations.
Fired by an app
One of the most direct ways Amazon is able to disseminate anti-union messages is through the AtoZ app, which is an essential tool in their daily work.
The app is used by warehouse workers to access pay stubs and tax forms, request schedule changes or vacation time, post on the “Voice of the Associate” message board, and communicate with human resources.
Jennifer Bates, a prominent union organizer at BHM1, learned Amazon fired her through AtoZ in 2023. She was later reinstated by Amazon “after a full review of her case,” and provided backpay, Hards said.
Jennifer Bates, an Amazon.com, Inc. fulfillment center employee, stands for a portrait at the Retail, Wholesale and Department Store Union (RWDSU) office in Birmingham, Alabama on March 26, 2021.
Patrick T. Fallon | AFP | Getty Images
The Retail, Wholesale and Department Store Union, which sought to represent BHM1 workers, has said the AtoZ app can access a user’s GPS, photos, camera, microphone and WiFi-connection information. The union also claims that “Amazon can sell the data collected to any third party companies and that data cannot be deleted.” The technology raises several concerns, including that it may suppress “the right to organize,” RWDSU said.
Hards said the RWDSU’s claims are inaccurate and denied that the company sells any data affiliated with AtoZ use. She said AtoZ users must give the app permission to access things like their GPS location.
At the Garner facility, the AtoZ app has been plastered with “anti-union propaganda” since the RDU1 election was announced last month, Medelius-Marsano said.
One AtoZ message suggested employees’ benefits could be at risk if they voted in a union, while another described CAUSE as an “outside party” that’s “claiming to be a union.”
RDU1 site leader Kristen Tettemer said in another message that a group like CAUSE “can get in the way of how we work together,” and that “once in, a union is very difficult to remove.” Smith said Amazon’s response to the union drive has been centered around “putting out the facts and telling you to do your research.”
Medelius-Marsano said it all amounts to an environment of intimidation.
“There’s no doubt about it,” Medelius-Marsano said. “If we lose, fear is going to be the reason.”
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At the Meta Connect developer conference, Mark Zuckerberg, head of the Facebook group Meta, shows the prototype of computer glasses that can display digital objects in transparent lenses.
Andrej Sokolow | Picture Alliance | Getty Images
Mark Zuckerberg on Wednesday unveiled the $799 Meta Ray-Ban Display glasses, the social media company’s first consumer-ready smart glasses with a built-in display.
The glasses, which costs $799, contain a small digital display that can be controlled via hand gestures through a wristband powered by neural technology, confirming a CNBC report in August. A promotional video of the new smart glasses appeared on Meta’s YouTube page on Monday but was later removed.
Tune in Thursday at 11:00 a.m. ET: Meta Chief Product Officer Chris Cox joins CNBC TV to discuss with Julia Boorstin the highlights of Meta’s annual Connect event, live from the company’s HQ in Menlo Park CA.
The new smart glasses are a bridge between the company’s audio-only Ray-Ban Meta smart glasses and the experimental Orion augmented reality glasses that the company revealed at last year’s Connect event. Orion can overlay 3D visuals over a person’s real-world field of view with the help of a wireless computing puck, but the glasses are expensive to make and not yet available to consumers.
The Meta Ray-Ban Display glasses come with the Meta Neural Band, an EMG wristband that allows users to control the device using hand gestures.
“These are glasses with the classic style that you’d expect from Ray-Ban, but they’re the first AI glasses with a high resolution display and a fully weighted Meta neural band,” Zuckerberg said.
With the new glasses, people can do tasks like watch videos through the display or see and respond to text messages, Zuckerberg said. The display doesn’t block a person’s view, and it disappears when not being used, he said.
The glasses go on sale in the U.S. on Sept. 30.
During a demo, Zuckerberg repeatedly attempted to call Meta tech chief Andrew Bosworth unsuccessfully.
“This is uh — you know, it happens,” Zuckerberg said.
Meta has been developing its smart glasses with eyewear giant EssilorLuxottica since 2019, and last year renewed a long-term partnership agreement to continue making the products.
The company on Wednesday also debuted the Oakley Meta Vanguard smart glasses, intended for athletes who participate in high-intensity sports like snowboarding and mountain biking. The Oakley-branded glasses will cost $499 when they launch on Oct. 21, making it $100 more expensive than the Oakley Meta HSTN glasses that went on sale in June.
The Oakley Meta Vanguard smart glasses have a sportier look than the Oakley Meta HSTN glasses thanks to a wraparound design that extends its colorful lenses around a person’s temples. Unlike the Oakley Meta HSTN glasses, the new model contains a button on the underside of its frames so that athletes who wear helmets can more easily capture photos and videos.
The new sports-centric smart glasses have up to nine hours of battery life, can capture 3K video and contain speakers that are louder than their predecessors. The glasses can connect with Garmin-branded fitness watches to track certain stats like their heart rates using the Meta AI assistant. Preorders start today.
Meta also debuted the Ray-Ban Meta (Gen 2), the latest version of the company’s original smart glasses. The Ray-Ban Meta (Gen 2) costs $379, up from $299 for the version released in 2023. The Ray-Ban Meta (Gen 2) has double the battery life of the previous model, lasting 8 hours on a single charge, and a more powerful camera that can capture 3K Ultra HD video. The new glasses go on sale today.
Zuckerberg also announced Horizon TV, pitching it as a way to watch television shows, sporting events and movies using the company’s Quest VR headsets. Some of Meta’s partners who will be contributing content to the app include Disney and Universal Pictures, Zuckerberg said.
Thomas Fuller | SOPA Images | Lightrocket | Getty Images
Cybersecurity company Netskope is eying a $7.3 billion valuation after pricing shares at $19 for its upcoming IPO, at the top end of its expected range.
Netskope will start trading on Thursday on the Nasdaq under the ticker symbol “NTSK.” The share sale raised $908.2 million.
Earlier this week, Netskope lifted its expected pricing range to between $17 and $19 a share, up from an original range of $15 to $17. The company revealed plans to go public last month.
Netskope’s offering comes amid a hot period for IPO activity after a years-long lull spurred by step inflation and soaring interest rates. The long-overdue resurgence has fueled optimism on Wall Street and in a venture capital industry eager for return on investment.
Ticket reseller StubHub slid 6% it its first day of trading Wednesday, but a lackluster start may not be reason for concern. CoreWeave went public in March and closed flat in its first day, with shares going on to triple.
Swedish buy now, pay later firm Klarna jumped 15% in its debut this month. Peter Thiel-backed cryptocurrency exchange Bullish, design software company Figma and stablecoin issuer Circle have also jumped since their recent market debuts.
The cybersecurity sector is also undergoing a busy stretch for dealmaking fueled by ongoing artificial intelligence advancements and a shifting threat landscape.
This year’s biggest tech deals include Google’s whopping $32 billion acquisition of Israeli cloud security startup Wiz and Palo Alto Network‘s $25-billion CyberArk buyout. Thoma Bravo-backed SailPoint went public in February after the private equity firm took it private in 2022. Cybersecurity competitors CrowdStrike and Zscaler have also made acquisitions this year to beef up their offerings.
Santa Clara, California-based Netskope was founded in 2012 and is led by co-founder and CEO Sanjay Beri. At the end of July, the company said it had 2,910 employees and 4,317 customers across 90 countries.
Netskope says it competes in the IT security vendor and networking space against the likes of Broadcom, Cisco, Palo Alto Networks and Zscaler.
Annual recurring revenues rose 33% to $707 million at the end of July and revenues reached $328 million for the six months ended July 31. The company also reported a net loss of $170 million during that period.
Some of Netskope’s significant backers include Accel, Iconiq and Lightspeed Venture Partners.
WATCH: Some of the recent IPO offerings have been ‘frothy’, says Tastylive’s Tom Sosnoff
Nscale, the UK-headquartered AI infrastructure provider.
Courtesy: Nscale
Two years ago, Nscale was a brand new startup in the U.K. that had yet to raise any outside funding or officially announce its existence.
Last year the London-based company came out of stealth, and in December announced that it had raised its Series A fundraising, totaling $155 million.
Now, Nscale finds itself at the center of the action in the hottest market on the planet: artificial intelligence. And it has close to $700 million in fresh capital from Nvidia, the world’s most valuable company.
In press releases on Tuesday, Nscale was named as an AI infrastructure partner for Nvidia, Microsoft and OpenAI, as the companies expand their buildouts in the U.K. Nscale then said it signed a five-year $6.2 billion agreement with Microsoft and Aker to develop “hyperscale AI infrastructure” in Europe, specifically Norway, where Aker is headquartered.
OpenAI made prior headlines with Nscale, announcing plans in July for a data center in Norway for a Stargate-branded AI data center. Nscale agreed to commit $1 billion for the project, with the goal of racking up 100,000 Nvidia graphics processing units (GPUs) at the site before 2027.
It’s a remarkably quick rise for a company that wasn’t even around when OpenAI kicked off the generative AI boom with the launch of ChatGPT in late 2022. At that time, what’s now Nscale was part of Arkon Energy, which was established a year earlier to provide infrastructure for cryptocurrency mining. Nscale was spun out to address soaring demand for data centers capable of handling AI workloads.
Like CoreWeave, which went public this year and now sports a market cap of $58 billion, Nscale is combining data center space, power and lots of GPUs with its own software in order to an provide end-to-end service for AI infrastructure.
CoreWeave, which supplies infrastructure to Microsoft, Google, Nvidia and OpenAI, also has roots in crypto. Founded in 2017, the company built up its initial fleet of Nvidia GPUs for ethereum mining before pivoting to AI.
Nscale didn’t respond to a request for comment following this week’s announcements, but CEO Josh Payne, who previously founded Arkon, told CNBC in late July that the company was targeting two big problems in Europe. One is a lack of sufficient computing capacity and the other is a “very fragmented market.”
“What the continent needs is large AI infrastructure projects deploying compute [power],” Payne said, after the announcement with OpenAI for the Norway buildout. “The ecosystem can consume from the project to build AI products, to generate productivity growth and economic benefit.”
Payne wrote in a LinkedIn post on Wednesday that the agreement with Microsoft and Aker is a “huge win for European-owned AI infrastructure.”
Europe has been pushing the concept of “sovereign AI,” requiring data centers and AI workloads to be located and processed on European soil. Nscale has quickly emerged as an important player in the U.K.’s bid to evolve into a global leader in AI. In January, Britain laid out an AI “action plan,” promising to reduce bureaucracy to help its domestic AI sector thrive.
While Nscale is addressing the European market, many of its early partners are big U.S. AI vendors. They timed their announcements on Tuesday to President Donald Trump’s state visit to the U.K.
On Wednesday, Trump visited Windsor Castle and met with King Charles, Queen Camilla and other members of the royal family. His trip comes at a contentious moment for U.K. Prime Minister Keir Starmer, who is under pressure to bring stability to the country after the exit of Deputy Prime Minister Angela Rayner over a house tax scandal and a major cabinet reshuffle.
Microsoft headlined the U.K. announcements, committing $15.5 billion of new investment to computing equipment. The software giant said it plans to work with Nscale to construct what will become the U.K.’s largest supercomputer in Loughton, a suburban town in the English county of Essex.
The site will initially house 23,040 Nvidia Blackwell GPUs to be delivered in the first quarter of 2027. When it goes live, it will generate 50 megawatts of AI capacity, scalable to 90 megawatts, according to a statement from Nscale.
“No one can make that kind of capital investment unless they’ve got somebody already committed to spend the money once the work is complete, and that’s the role we’re playing,” Microsoft President Brad Smith said Tuesday, adding the deal represents a major vote of confidence in Nscale.
OpenAI said it would launch a U.K. version of Stargate through a partnership with Nscale and Nvidia. OpenAI will deploy 8,000 GPUs in the project’s first phase early next year, with the option to expand capacity to approximately 31,000 GPUs over time.
Stargate U.K. will operate across a number of sites in the country — one of the early ones being Cobalt Park, an industrial state in the Northern English city Newcastle. Stargate was initially spawned in the U.S. in January as part of President Trump’s effort to push investments in AI infrastructure.
Nvidia CEO Jensen Huang attends the “Winning the AI Race” Summit in Washington D.C., U.S., July 23, 2025.
Kent Nishimura | Reuters
Nvidia’s announcement on Tuesday included an investment of up to £11 billion ($15 billion) with Nscale and CoreWeave to boost U.K. AI infrastructure.
Nvidia CEO Jensen Huang separately revealed on Wednesday that the chipmaker had made a £500 million ($683 million) equity investment into Nscale.
“We convinced ourselves that Nscale could be a national champion for AI infrastructure in the U.K.,” Huang told journalists at a press conference in London.
Nick Patience, AI practice lead at the Futurum Group, told CNBC that Nscale is “a key part of Nvidia’s push in the U.K. market and an acknowledgment by the government that it has to do something to get the AI infrastructure built here, which has been a long slog.”
Rapid growth
After exiting stealth in May of last year, Nscale’s first public announcement came two months later, when the company partnered with UAE’s Open Innovation AI to deploy 30,000 GPUs. Around the same time, Nscale said it was acquiring Kontena, which was founded in 2018 and specialized in high-performance computing data centers.
The next month, Nscale announced an agreement with Asian telecom company Singtel to offer a “GPU-as-a-Service (GPUaaS),” and serve customers in Europe and Southeast Asia. Initially, Nscale’s infrastructure relied on GPUs from Advanced Micro Devices. Today, the startup promotes various offerings from market leader Nvidia.
Nscale’s big financing landed in December, when the company said it raised $155 million in a round led by Sandton Capital Partners, with participation from Kestrel0x1, Blue Sky Capital Managers and Florence Capital.
Sandton co-founder Rael Nurick said in the press release that with its “unique vertically integrated approach, Nscale is building the hyperscale AI platform to power AI at scale.”
Nscale said at the time that it had grown its AI data center pipeline to 1.3 gigawatts from 300 megawatts the prior year to and that it was aiming to have 350,000 GPUs running by the end of 2027.
By comparison, CoreWeave said at a banking conference last week that its portfolio consists of “about 2.2 gigawatts of capacity that’s coming online.” The company said in its IPO prospectus in March that its 32 data centers were running 250,000 GPUs.
It’s been a whirlwind few years for Payne, Nscale’s founder. While he was serving as executive chairman of Arkon, he was also operating chief at Australia’s Battery Future Acquisition Corp., a blank check company that says it’s “targeting critical battery minerals and related supply chains.”
He’s got a lot of work in front of him.
Building out AI data centers with costly GPUs is a capital intensive process that’s historically required a hefty amount of debt. CoreWeave had raised a total of $12.4 billion in debt through the end of 2024, in addition to well over $1 billion in equity financing before its IPO. It announced a $1.5 billion bond sale in July after a $2 billion debt offering in May.
Nscale was trying to raise $1.8 billion earlier this year through a private credit deal led by bankers at Goldman Sachs, according to Bloomberg.
In the December video tied to Nscale’s equity fundraising, Payne called it “one of the largest Series As raised in U.K., European history.” He said the company would use the cash to deploy up to another 4,000 GPUs in its data center in Norway and to develop up to 180 megawatts of capacity in the company’s portfolio.
The aim, Payne said, was to deploy 50,000 GPUs by the end of 2025 and 150,000 by the end of next year.
“The key challenges that we see in the market is the significant increase in density at the GPU level,” he said. “This funding allows us to scale up materially” he said, and to become “one of the largest players in Europe.”
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