They drive large trucks with “Amazon” written on them and wear Amazon uniforms. But are they Amazon employees?
This is the issue at the heart of the controversy over the International Teamsters Association’s attempt to organize drivers to deliver Amazon packages in California, Illinois and New York.
Last year, 84 Amazon delivery drivers from Palmdale, Calif., became the first U.S. group to join the Teamsters. Since then, drivers in Skokie, Illinois, Queens, New York City and Victorville, California, have done the same.
But the problem is, Amazon isn’t signing the drivers’ paychecks. They work within Amazon’s large network of Delivery Service Partners (DSPs). DSP is an independent company incorporated as follows: amazon program This allows aspiring business owners to set up shop for as little as $10,000. DSP employs drivers to drive DSP’s trucks, which are typically leased through Amazon-approved third-party companies.
Therefore, Amazon says that DSP drivers are not employees of the company. The union claims Amazon is a co-employer of the drivers and accuses the e-commerce giant of using its DSP program to avoid liability. So far, local National Labor Relations Board officials have sided with the Teamsters. The NLRB Region 31 issued a complaint against Amazon on September 30th.
However, the situation is far from resolved as the issue is still pending in NLRB proceedings and courts. An NLRB administrative law judge set a hearing on the community’s motion for March 25, 2025.
Most Amazon delivery drivers work for independent companies within our delivery service partner network.
Is it bad for Amazon sellers?
If the union wins, Amazon will almost certainly pass on the cost increases. raise prices Phil Masiello, CEO of CrunchGrowth Revenue Acceleration Agency, longtime Amazon seller, and founder of several e-commerce companies, said the platform charges sellers a fee. But Amazon won’t give in easily, he added.
“The short answer is you can look at what happened in New York and other places. Amazon will absolutely fight that,” Masiello says.
team star position
A Teamsters spokesperson did not respond to a request for comment. But in a news release, the union accused Amazon of using the DSP structure to avoid its obligations “while having full control over driver wages, work conditions, and safety standards.”
In a release issued Oct. 2, Teamsters General President Sean M. O’Brien said the NLRB’s accusations would “give Amazon employees the pay, working conditions, and contracts they deserve. We’re one step closer to that.” Amazon has no choice but to bring us to the negotiating table. ”
Labor unions and their allies have been putting political pressure on Amazon.
On October 18, 133 members of the U.S. House of Representatives, led by the Congressional Labor Caucus, issued a letter to Amazon CEO Andy Jassy requesting information regarding “unlawful violations of the National Labor Relations Act.” .
“We are deeply concerned by continuing reports that Amazon may be engaging in unlawful coercion, intimidation, and retaliation against workers involved in union organizing efforts,” the letter said. are.
The letter then asks Jassy to answer six questions about union organizing efforts by Amazon’s direct employees and workers employed by DSP operators.
what amazon says
Amazon spokeswoman Eileen Hurd said in an email to Practical E-Commerce that the NLRB’s complaint “reveals that the Teamsters have been misrepresenting facts for more than 15 months. , which is why the NLRB has not included most of their larger allegations.”
“As we have said all along, there is no merit to their claims, and we look forward to demonstrating that as the legal process progresses, as well as the several remaining claims.” We expect it to be rejected,” Haas said, adding that Amazon is not inherently opposed to unionization.
“Our employees have a choice whether to join a union or not. They always have,” she said in an email. “We value the opportunity for each person to be respected and valued as an individual, and have their unique voice heard by working directly with our team. In fact, Amazon already has We offer what many unions want: competitive wages, health benefits from day one, and opportunities for career advancement.We work as a team to keep Amazon a great place to work. I look forward to working directly with you.”
Amazon says its DSP network is comprised of 4,400 operators employing 390,000 drivers and generating $58 billion in combined revenue, roughly the same as Delta Air Lines’ 2023 operating revenue. They say it’s the same.
The volatile relationship between Amazon and the Teamsters goes beyond DSP driver organizing efforts. In 2022, Amazon employees at the JFK8 fulfillment center in Staten Island, New York, formed the Amazon Labor Union (ALU). ALU partnered with the Teamsters earlier this year to become ALU-IBT.
Founded in 1903, the Teamsters represent 1.3 million people in the United States, Canada, and Puerto Rico.
