NYC Council Advances Bill to Force Amazon to Hire Delivery Drivers Directly
New York City leaders are pushing the Delivery Protection Act, a bill that would require Amazon and other logistics firms to directly employ their delivery drivers. The measure aims to end the use of Delivery Service Partners (DSPs), which critics argue allows Amazon to avoid labor liabilities and union organizing. Amazon warns the law could force it to relocate operations outside the city, threatening jobs and increasing delivery times. The bill has supermajority support in the city council and may spread to other cities like Chicago.
Key points
- The Delivery Protection Act would mandate that Amazon, FedEx, and other logistics companies hire delivery drivers as direct employees rather than using independent DSPs.
- Supporters, including Mayor Zohran Mamdani and Deputy Mayor Julie Su, argue the current model allows Amazon to control working conditions while avoiding legal responsibilities for wages, safety, and unionization.
- Amazon opposes the bill, stating it threatens the jobs of over 5,000 DSP employees and could lead to the relocation of delivery hubs outside New York City, resulting in slower and more expensive deliveries.
- The bill also requires last-mile facilities to obtain licenses and meet specific safety and training standards, addressing concerns that injury-related crashes increased in 78% of areas where such facilities opened.
- The International Brotherhood of Teamsters supports the legislation, viewing it as crucial for unionizing Amazon drivers and protecting high-paying jobs in the logistics industry, particularly those at UPS.
Background
Mayor Zohran Mamdani has been a prominent figure in New York City politics, recently clashing with Israeli Prime Minister Benjamin Netanyahu over UN General Assembly proceedings and supporting Governor Kathy Hochul’s reelection campaign. His administration has previously secured state support for initiatives like expanded no-cost childcare, signaling a broader alignment with progressive labor and social justice policies.
Why it matters
The outcome of this legislative battle could set a precedent for labor laws in other major cities, potentially reshaping the gig economy and outsourcing models across the United States. If passed, it could force large corporations to assume direct responsibility for their supply chain workers, impacting wages, safety standards, and unionization efforts nationwide.
What to watch
The Delivery Protection Act is expected to pass the New York City Council this year, given its supermajority support. Amazon may consider relocating its delivery operations outside the city if the bill is enacted, while similar legislation has already emerged in Chicago. The fight may also influence federal policy, especially as the current administration has moved away from joint employer regulations that previously constrained Amazon’s outsourcing practices.
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