NYC bill would force Amazon to hire thousands of – Business News
Amazon is squaring off in opposition to New York City legislators over a bill that would force the e-commerce giant to hire thousands of supply employees throughout the 5 boroughs — a rule that would ship prospects’ payments hovering by a number of hundred {dollars} per yr, The Post has realized.
The controversial Delivery Protection Act – reintroduced earlier this yr by Democratic Queens Councilwoman Tiffany Caban and slated for its first public listening to at City Hall on Thursday – might upend Amazon’s supply model, which depends on more than 40 subcontractors who make use of some 5,000 employees to drive Amazon’s branded vans and e-bikes throughout the town.
“This bill lights a ton of dynamite under the delivery industry,” stated an industry source who works with Amazon and its logistics suppliers.
So-called final mile supply amenities would need to be licensed by New York City, in accordance to a bill launched this yr. REUTERS
Indeed, if the bill turns into law Amazon would probably relocate its 10 city-based distribution facilities to close by areas simply outdoors the town borders in New Jersey, Long Island and Westchester County, in accordance to an financial impression evaluation of the proposed laws reviewed by The Post.
A retreat outdoors the town limits would end in deliveries that aren’t solely considerably slower but additionally more expensive — with New York City households paying an additional $664 a yr to get their items, in accordance to a draft of the examine by consultancy AKRF.
“Carriers warn that on-time performance will suffer,” in accordance to a draft of the examine. “Customers may wait longer on average for their orders and it will become harder to meet tight delivery windows like overnight or same day service in many areas.”
The examine was commissioned by Five Borough Jobs Campaign, an group comprised of chambers of commerce, business enchancment districts and financial development firms.
New York City councilwoman, Tiffany Caban, launched the Delivery Protection Act. Robert Miller for NY Post
The proposed laws would require so-called final mile distribution facilities to be licensed by the town and to additionally make use of their supply employees immediately. Violations of the license might end in a facility being shut down, in accordance to the bill.
In the company’s first public assertion on the state of affairs, Amazon spokesperson Kelly Nantel on Wednesday confirmed to The Post that the laws “would also force us to consider relocating delivery operations outside of the city.”
“We’re committed to creating good jobs, supporting our thousands of employees and local small business partners in New York City, and providing fast, affordable delivery in a safe working environment,” Nantel stated.
Amazon doesn’t make use of its supply drivers of vans and e-bikes. Christopher Sadowski
“As written, this legislation would directly undermine that commitment, threatening the more than 40 Delivery Service Partners we work with in New York City every day and putting the jobs of their more than 5,000 employees at risk,” she added.
The bill is backed by the Teamsters union, which has been attempting to set up Amazon warehouse employees for years however doesn’t but have a contract with the company.
The union maintains that the licensing requirement would additionally apply to warehouses situated outdoors of the town as long as they’re offering last-mile supply into the town, stated spokesman Matt McQuaid.
Mayor Zohran Mamdani has not indicated whether or not he helps the Delivery Protection Act. ZUMAPRESS.com
Hundreds of supporters and opponents of the laws are gearing up for rallies on Thursday outdoors City Hall. Democratic socialist Mayor Zohran Mamdani and City Council Speaker Julie Menin haven’t but weighed in on the proposal — though each have come down onerous on the food supply apps.
The mayor’s workplace didn’t reply to requests for remark. A spokesman for Menin, a Manhattan Dem, stated she is ready for the “bill to go through the legislative process, to receive input and engagement from stakeholders.”
City Council speaker Julie Menin is “allowing the bill to go through the legislative process” earlier than she weighs in on its deserves. Brigitte Stelzer for NY Post
“It’s a tough bill and needs a lot of work,” stated Upper West Side Councilwoman Gale Brewer, a Dem who’s amongst 31 co-sponsors of the laws. “It won’t be a quick process.”
A newly shaped coalition known as New York Delivers contains small business homeowners who ship for Amazon, together with the town’s Chambers of Commerce. They say Amazon shouldn’t be the one goal of the laws.
Other corporations together with FedEx, DHL, FreshDirect, DoorDash and dozens of logistics suppliers would both be required to apply for metropolis licenses and even be put out of business, in accordance to the coalition’s spokesperson.
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A DoorDash rep stated the company plans to submit testimony on the Thursday listening to.
The Teamsters argue that the bill offers sorely needed employee protections and coaching and ensures that Amazon’s automobiles – that are leased by Amazon’s supply service suppliers generally known as DSPs – are in good situation.
“Amazon wants to avoid legal liability,” when drivers are concerned in accidents, McQuaid stated.
A NYC comptroller report final yr confirmed that crashes close to last-mile amenities that resulted in accidents elevated by 16% in 2024. Truck-related crashes elevated by 146% and that Amazon’s DSP program had a greater damage fee than different related final mile courier corporations, the report discovered.
Some e-bike Amazon drivers are paid about $20 an hour. Christopher Sadowski
Two logistics corporations that associate with Amazon insist their employees are paid above average wages, get full health care and endure security coaching.
“We are not fly-by-night operations,” Juan Martinez, who owns COPR Industries, informed The Post.
His company employs more than 100 Amazon drivers who’re paid $20.50 an hour for working e-bikes and $23.75 an hour for driving vans round Brooklyn.
DashWave Delivery, which operates in Manhattan and employs up to 150 drivers, would be put out of business if the licensing requirement is enacted, proprietor Kris Basmagy informed The Post.
“There is a ton of misinformation about what we do and who we are,” Basmagy stated.
While the laws would have an effect on any facility that makes deliveries within the metropolis, there are exemptions, McQuaid stated.
The bill excludes retail companies that make deliveries from their storefronts immediately to customers, together with florists and eating places.
