Mayor Mamdani wants to tighten management of Amazon, with the focus being a bill that would force the company to take direct responsibility for thousands of delivery drivers.
In early August, Mr. Mamdani sponsored the Delivery Protection Bill, which would require warehouse operators like Amazon to apply for city licenses and meet new safety, training and employment requirements. The bill also requires Amazon to directly recruit drivers currently working for small companies that deliver goods for the corporation.
Mr. Mamdani said that the new regulations will strengthen the protection of delivery people and force businesses to take responsibility for how they operate.
Amazon does not sign labor contracts directly with drivers. Instead, it hires small outside companies called Delivery Partners (DSPs) to set up its own fleets and recruit drivers. Legally and legally, the driver is an employee of the DSP company, even though he wears a uniform with the Amazon logo, drives an Amazon delivery vehicle, and receives goods from the Amazon warehouse.
"We are working to reduce the cost of living, while focusing on helping workers keep more money in their pockets," said New York Deputy Mayor in charge of economic justice Julie Su.
However, Amazon believes that the bill could threaten the jobs of more than 5,000 delivery staff and put great pressure on small businesses that are shipping goods for the company. The company also warned that it may consider moving warehouses from New York if the bill is passed.
Patrick Penfield, a professor specializing in supply chain at Syracuse University, said the Delivery Protection Act will increase Amazon's costs.
"Their last-mile delivery model relies on third-party contractors, and that's how they're able to keep delivery costs low in New York," he said.
According to research by consulting firm AKRF, funded by the anti-bill Five Borough Jobs Campaign, each New York household could incur an additional $664 in costs per year if the new regulations are passed.
José Huerta, a driver who works for a delivery partner at Amazon's DBK1 facility in Queens, said he is paid $23.75 per hour, works four days per week and delivers about 250-290 packages per day.
As a member of the Teamsters union, Huerta supports the bill, partly because he believes drivers will be in a better position when negotiating benefits and benefits if they have a more direct labor relationship with Amazon.
Meanwhile, owners of some delivery businesses that cooperate with Amazon warned that the bill could threaten the existence of small companies.
"The bill takes away the ability of small businesses, family businesses," said Kris Basmagy, owner and founder of delivery company DashWave Delivery. "Basically, this bill puts all the power to recruit human resources in the city into the hands of large corporations."
The Delivery Protection Bill is not the first cause of conflict between Amazon and progressive politicians in New York. In 2019, Amazon abandoned its $2.5 billion plan to build a headquarters in the city after facing political opposition related to incentives for the project.
Mr. Mamdani also announced that the city has collected more than 9 million USD in fines from Amazon delivery vehicles for not turning off the engine when stopping. The New York mayor also asked some online retailers, including Amazon, to stop selling electric bicycles that the city considers illegal.
Amazon claims that e-bikes sold on its platform must meet current safety standards and has coordinated with city authorities to resolve fines related to not turning off the bike when parked.
Political consultant Hank Sheinkopf said that progressive politicians "attacking Amazon" is not new, but Mr. Mamdani's moves towards this corporation also reflect political ambition.
"What better way to kick off phase two of the reform campaign than to take on one of the world's most famous delivery groups?", Sheinkopf said.
Mr. Mamdani won a historic victory in the New York mayoral election with an anti-elite action program and promoting workers' rights. During the campaign, he clamped down on rent, made buses free, opened city-owned grocery stores, and proposed raising taxes on the rich and businesses.
"It was a smart move, because he was already a national figure and had great ambitions," Sheinkopf added.
