Amazon Declared 'Joint Employer' Of Contracted Delivery Drivers By Labor Board, Paving The Way For Union Negotiations

The National Labor Relations Board has determined that Amazon.com Inc. (NASDAQ:AMZN) is a “joint employer” of some contracted delivery drivers.

What Happened: The NLRB’s regional director reviewed two unfair labor practice charges filed in January regarding Amazon’s treatment of drivers at an Atlanta warehouse, known as DAT6. The drivers worked for a contractor called MJB Logistics, reported CNBC.

Amazon has consistently resisted being labeled as a joint employer of its contracted delivery companies. However, lawmakers and labor groups, including the Teamsters union, argue that drivers wear Amazon-branded uniforms, drive Amazon-branded vans, and follow schedules set by Amazon.

This ruling might force Amazon to negotiate with employees aiming to unionize. The decision follows a similar ruling last month concerning Amazon drivers at a Palmdale, California facility.

The Teamsters union has been intensifying its efforts to organize Amazon workers. In April 2023, drivers for Battle Tested Strategies claimed Amazon canceled their contract after they voted to unionize, which Amazon denied, according to the report.

The NLRB also found merit in allegations that Amazon threatened Atlanta drivers with site closure if they unionized, made coercive statements, and created an impression of surveillance.

These determinations are preliminary steps in the NLRB’s process. If not settled, a hearing with an NLRB judge will be scheduled, and decisions can be appealed to the NLRB board and federal court, according to the report.

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Why It Matters: This ruling is part of a broader trend of increasing scrutiny of Amazon’s labor practices. In June, around 15,800 Amazon Flex drivers initiated arbitration claims, alleging misclassification as independent contractors rather than employees.

Earlier in April 2023, Amazon spent over $3 million on consultants to discourage unionization among its delivery network employees.

In August, a federal labor regulator classified Amazon delivery drivers as employees, potentially increasing the company's responsibility for working conditions within its logistics network. The union described this as a “monumental determination.”

Additionally, in September 2023, Amazon announced plans to increase wages for contracted drivers as part of a $440 million investment in its third-party delivery program.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote