The head of government is pushing for the regulation of these delivery workers while companies warn that they will move their operations if the measure is approved
The communist mayor of New York City, Zohran Mamdani, supports a union initiative that would require Amazon and other e-commerce giants to directly employ thousands of their delivery workers, a measure that would force these companies to cease operations in the Big Apple.
The legislation, known as the Delivery Workers Protection Act and backed by the Teamsters union, would prohibit companies from subcontracting warehouse and delivery work at last-mile facilities and require that these workers be directly employed by those operating the facilities.
Mamdani described the companies' subcontracting system as "exploitative" and stated that the project he supports "ensures that the corporations benefiting from the labor of workers are held accountable for the consequences of their business practices."
This project would impose an additional cost of $664 per year on New York households receiving their products from Amazon and other companies, according to a study by the consulting firm AKRF. The jobs of the 5,000 people employed by the 40 local distributors working with Amazon would also be at risk.
Mamdani no knows what else to do to ruin New York
"We are committed to creating good jobs, supporting our thousands of employees and local small business partners in New York City, and providing fast and reliable deliveries for New Yorkers," said Amazon spokesperson Kelly A. Nantel to the New York Post.
"But as currently written, this legislation would directly undermine that commitment: threatening the small businesses that deliver to customers, putting at risk the jobs of more than 5,000 of their employees, and forcing us to consider relocating delivery operations outside the city," Nantel continued.
The coalition New York Delivers, which represents these types of workers, has spoken out against this project stating that it threatens their livelihoods and called for a press conference to urge city council members to reject the measure. This group estimates that up to 10,000 delivery jobs could be at risk.
Rudy Cazares, a New Yorker who operates a delivery service for Amazon and FedEx and employs more than 130 people, declared that the legislation, if passed, would put him out of business. "I would have to close my business. I would be out of business," he stated.