In a historic first for Amazon.com, Inc. (NASDAQ:AMZN), workers at a Staten Island warehouse voted in favor of forming a union, CNBC reported live Friday around noon.
This is reportedly the first time this occurred for Amazon in the U.S. and is representative of the labor challenges the company faces.
The ruling will likely be followed by an appeal process and although it's a bump in the road, it's not a disaster for the company, Short Hills Capital's Steve Weiss said Friday on CNBC's "Fast Money Halftime Report."
What Does It Mean For The Stock? Not much, according to Weiss, and here's why.
The issue isn't surrounding wages, because Amazon is well known for fairly compensating workers. Instead, it's about workers' schedules, Weiss said.
If employees have more say as to when they decide to work, it could force Amazon to increase wages for less desirable shifts, he explained.
"Will it expand across the country? And of course, if it does, costs go up," Weiss said.
Amazon could easily pass those costs along to the consumer by raising prices, he noted, adding it really doesn't mean a whole lot for shareholders.
Weiss concluded, "It's not a reason to sell the stock."
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AMZN Price Action: Amazon has traded between $2,671.45 and $3,773.08 over a 52-week period.
The stock was up 0.53% at $3,276.20 Friday at publication.
Photo: Courtesy of Amazon
