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 scannersused 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, filedan 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 hasput 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.”
Artificial intelligence startup Cursor on Thursday announced it has closed a $2.3 billion funding round at a $29.3 billion post-money valuation, nearly triple what it was worth as of its last raise in June.
Tune in at 4:30 p.m. ET as Cursor CEO Michael Truell joins “Closing Bell: Overtime” to discuss the funding round. Watch in real time on CNBC+ or the CNBC Pro stream.
Cursor built a popular AI coding tool that helps software developers generate, edit and review code. Its parent company, Anysphere, is an applied research lab that was founded in 2022.
Cursor is one of just a handful of AI startups, including OpenAI, Anthropic, xAI, Safe Superintelligence and Thinking Machines, that are valued at over $10 billion.
Investors including Accel, Thrive Capital, Andreessen Horowitz, DST Global, Coatue, Nvidia and Google participated in its latest funding round, according to a blog post.
“This funding will allow us to invest deeply in our research and build Cursor’s next magical moments,” Cursor said.
Read more CNBC tech news
Since the tool first launched in 2023, Cursor said it has crossed $1 billion in annualized revenue and swelled to more than 300 employees.
Nvidia CEO Jensen Huang called the company his “favorite enterprise AI service” in an interview on CNBC’s “Squawk Box” in October.
The company said its in-house models generate more code than “almost” any other large language models in the world.
The coding tool market has grown more crowded in recent months as it’s proved to be a lucrative AI use case. Cursor competes with companies like OpenAI, Anthropic and Cognition, which acquired the AI coding startup Windsurf in July.
OpenAI approached Anysphere earlier this year about potentially purchasing Cursor, but the deal failed to gain traction, as CNBC previously reported. OpenAI was also briefly in talks to acquire Windsurf before ultimately introducing its own coding tool called Codex in May.
In September, Anthropic said its coding tool Claude Code has already generated more than $500 million in run-rate revenue for the company since its full launch in May. As of July, Windsurf was generating $82 million in annual recurring revenue, Cognition said in a blog post at the time.
“Internally, we often talk about how high the ceiling is for how great Cursor can become, and how much work still remains to get there,” Cursor said.
Verizon chairman Mark Bertolini said Thursday that the company’s new CEO, former PayPal boss Dan Schulman, is working to revive Verizon from its period of share losses under former CEO Hans Vestberg.
Bertolini, who is also the Oscar Health CEO and who was named Verizon chairman last month, told CNBC’s Becky Quick on “Squawk Box” that the company needs to “do something different” as it undergoes its leadership change.
“Verizon has gone from number one in market cap, bond ratings and market share to number three. And the network isn’t as differentiated as it used to be, in large part because everybody’s been spending money to put these 5G networks in place,” Bertolini said. “So losing 30% share over the last eight years is an issue, and we have to do something different.”
In October, the company announced Schulman would be replacing Vestberg, who had led the company since 2018. In a statement at the time, Schulman said Verizon was at a “critical juncture” and that he believed the company had a “clear opportunity to redefine our trajectory.”
Schulman previously led PayPal through significant revenue growth and has served on Verizon’s board of directors since 2018.
Vestberg is remaining on the the board of directors until the 2026 annual meeting and serving as a special advisor through Oct. 4, 2026.
Bertolini said Thursday that Schulman is evaluating underlying cost structures and other aspects of the company to ensure its success.
“We believe that once we have that plan in place, we’ll have a good story,” Bertolini said. “The Street reacted early on that there’s going to be a price war; I think it’s less about price war than the value of what we’re offering to people through the product.”
Bertolini added that Schulman will be revealing his plan for turning around the company “sooner rather than later.”
“The board needed to act, and we acted,” Bertolini said.
Elon Musk announced his new company xAI, which he says has the goal to understand the true nature of the universe.
Jaap Arriens | Nurphoto | Getty Images
Elon Musk‘s artificial intelligence company xAI has raised $15 billion from investors, sources familiar with the matter told CNBC’s David Faber.
The funding adds another $5 billion to the $10 billion round CNBC reported on in September that valued the startup at $200 billion. Sources told CNBC that a lot of the money will fund graphic processing units that underpin large language models.
Artificial intelligence startups have reached sky high valuations in recent months as they raise massive amounts of capital to power seemingly endless demand for foundational models.
Last last week, Tesla shareholders voted to approve Musk’s massive pay package worth nearly $1 trillion, and voted on a proposal for the company to invest in xAI.
Brandon Ehrhart, general counsel at Tesla, said there were more votes for than against, but noted the abstentions and said the company is considering next steps on the issue.
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