Zohran Mamdani, the New York City mayor, who has sparred with New York asset owners over so-called "tax-the-rich" bills such as taxing second homes, has now taken on retail giants. He threw his weight behind a bill that would require major retail and delivery companies like Amazon to directly employ delivery workers instead of using subcontractors for deliveries.
On the 10th (local time), according to the New York Times (NYT) and the New York Post, Mayor Mamdani said he supports the Delivery Protection Act, which is pending before the New York City Council. The bill, introduced by socialist-leaning New York City Council member Tiffany Cabán, centers on regulating so-called "last-mile" delivery operations by retailers and carriers such as Amazon and FedEx.
Until now, large retail and delivery companies have outsourced the final stage of delivering goods to customers in their networks to subcontractors. Through this, they have been known to avoid various employment regulations such as minimum wage and benefits that would apply if they directly hired delivery workers. But if the bill takes effect, those companies would have to directly hire delivery workers instead of relying on subcontractors.
Mayor Mamdani said in a statement, "Companies like Amazon are building multibillion-dollar business models while dodging responsibility through an exploitative subcontracting system." He called the bill "a commonsense regulation that protects delivery workers, safeguards the communities where delivery facilities operate, and makes the corporations that profit from workers' labor accountable for the consequences of their business practices."
Corporations immediately pushed back. They argue that if the bill takes effect, delivery expense will rise and delivery speeds could slow. Amazon warned it could move delivery hubs outside New York City to avoid the new rules, in which case thousands of jobs could disappear in the New York area.
Amazon currently works with more than 40 delivery service partners in New York City, which employ more than 5,000 people. Spokesperson Kelly Nantel told Business Insider, "As written, the bill would directly undermine Amazon's commitment to local hiring," adding, "It would threaten the small enterprises that deliver products to customers, jeopardize the jobs of more than 5,000 of their employees, and ultimately force consideration of transferring delivery operations outside New York City."
Analysts say the burden on consumers could also increase. According to research by consulting firm AKRF, if the bill passes, delivery expense could rise by as much as $5.20 per package, costing New York households up to $664 more per year. AKRF said if retailers and carriers move delivery hubs outside the city, delivery speeds could slow and expense burdens could grow.
Subcontractors handling delivery work also are not welcoming the bill's passage. Rudy Cazares, who runs a delivery service partner company for Amazon, said he directly employs about 130 workers and provides benefits, and argued that if the bill passes, it would be difficult to keep the business going. "We would have to shut down the business, because there would no longer be anything for us to do," he said.
Labor groups, on the other hand, support the Delivery Protection Act and are urging its passage. The International Brotherhood of Teamsters, one of the largest labor unions in the United States, said that if the bill passes and Mayor Mamdani signs it, New York could become the first city in the country to regulate last-mile delivery operations. Thomas Gesualdi, Chairperson of Teamsters Joint Council 16, said, "Politics in New York's five boroughs has entered a new era," adding, "People who are workers and who represent workers' rights are now in the driver's seat."
The clash over this bill could further highlight class tensions surrounding Mayor Mamdani's pro-labor and tax-the-rich policies. Since taking office, he has repeatedly clashed with asset owners and corporations as he pursued a rent freeze and taxes on second homes for the wealthy.
Eric Blanc, an assistant professor of labor studies at Rutgers University, called the bill "a very good issue to pick a fight over." He said the debate frames a confrontation between "young Black and people-of-color working-class New Yorkers and Amazon's billionaire founder Jeff Bezos."