Amazon has warned that it may shut down 15 New York City warehouses and eliminate 2,000 positions if the Delivery Protection Act becomes law. The proposed legislation would require the e-commerce giant to directly employ 5,000 delivery drivers currently managed by third-party firms.
The 5,000-worker mandate triggering Amazon's exit threat
The Delivery Protection Act, introduced by Queens Council Member Tiffany Caban, seeks to shift the employment model for delivery drivers in New York City. As reported by The Post, the bill would force Amazon to directly hire upwards of 5,000 delivery workers who are currently employed via independent contractors. Proponents of the measure argue that this shift is necessary to improve safety conditions and increase pay for those on the front lines of the delivery network.
Amazon's response has been an ultimatum: the company suggests it will not only move those 5,000 delivery roles out of the city but also shutter 15 last-mile warehouses. This move would result in the loss of an additional 2,000 warehouse staff members. According to The Post, Amazon does not directly employ delivery workers anywhere else in the United States, making this a fundamental clash over the company's global operational model.
Lessons from the 1.6 million square feet of vacant Quebec space
The threat to exit New York City echoes a recent labor conflict in Canada. Early last year, Amazon closed seven warehouses in Quebec near Montreal following organizing efforts by the Confederation des syndicats nationaux (CSN) union at a facility in Laval. Marc Wulfraat, founder of MWPVL International, notes that Amazon often closes buildings when faced with union activity to send a deterrent message to other regions.
The financial cost of such retreats is often secondary to the company's labor strategy. In Quebec,Amazon continues to pay rent on more than 1.6 million square feet of space it spent hundreds of millions of dollars to build, even as those facilities sit vacant or are offered as subleases. This pattern suggests that Amazon is willing to absorb significant real estate losses to avoid the structural changes associated with unionized or directly employed workforces.
Why Speaker Julie Menin and 34 co-signers are weighing job losses
The Delivery Protection Act currently enjoys significant momentum within the City Council, boasting 34 co-signers. However, the threat of mass layoffs has created hesitation among leadership. A source close to negotiations told The Post that Speaker Julie Menin is uncomfortable with the potential for thousands of jobs to vanish if the bill passes in its current form.
Several critical questions remain regarding the final version of the legislation, as no vote has been scheduled. It is unclear whether the City Council will pivot toward a compromise that allows independent contractors to remain while requiring Amazon to provide enhanced safety guarantees. Furthermore, it remains to be seen if the mayor's support for the bill will outweigh the economic anxiety of the Council members.
The New Jersey Turnpike as a strategic alternative to NYC
Logistics experts suggest that Amazon's threat to leave New York City is credible because of existing infrastructure alternatives. an owner of DashWave Delivery, which services the Upper East Side of Manhattan, told The Post that Amazon could simply replace its New York City facilities with warehouses currently being constructed along the New Jersey Turnpike.
This potential shift occurs as Amazon continues to fight labor organization in other hubs . While 5,500 workers at the JFK8 fulfillment center on Staten Island voted to unionize in 2022, they still lack a collective bargaining agreement. The company is also embroiled in litigation with the National Labor Relations Board regarding its tactics in Bessemer, Alabama, illustrating a broader corporate strategy of resisting direct employment and unionization across its US footprint.
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