New York City Mayor Zohran Mamdani has endorsed controversial legislation that would require Amazon and other major delivery companies to hire last-mile delivery workers directly, a proposal supporters say would strengthen worker protections but critics warn could eliminate thousands of jobs, increase delivery costs, and push Amazon to move operations outside the city.

On Monday, Mamdani announced his support for the Delivery Protection Act, a measure backed by the Teamsters union that would prohibit companies from subcontracting key warehouse and last-mile delivery operations. Instead, workers would have to be employed directly by the operators of the delivery facilities.

“Corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting,” the mayor said in a statement.

Mamdani described the proposal as “common-sense regulation that protects delivery workers, safeguards the communities where these facilities operate and ensures that the corporations benefiting from workers’ labor are responsible for the consequences of their business practices.”

Opponents argue the legislation would come with significant costs. A study conducted by consulting firm AKRF estimated that the measure would add an average of $664 annually to household delivery expenses for New York City residents.

“This law is just going to raise prices for consumers,” Business Council of New York State spokesperson Steve Smith told The Post on Monday.

Amazon, which partners with more than 40 locally owned Delivery Service Partners employing over 5,000 workers across New York City, has warned that the legislation could force the company to shift its delivery network beyond the five boroughs.

AKRF has previously concluded that relocating those operations would likely result in deliveries that are slower and more expensive for city residents.

“We’re committed to creating good jobs, supporting our thousands of employees and local small business partners in New York City and providing fast, reliable delivery for New Yorkers,” Amazon spokeswoman Kelly A. Nantel told The Post.

“But as written, this legislation would directly undermine that commitment — threatening the small businesses that deliver to customers, putting the jobs of more than 5,000 of their employees at risk and forcing us to consider relocating delivery operations outside of the city.”

Opposition to the proposal continued Monday as delivery workers and small-business owners planned a rally in East Harlem urging city officials to reject the legislation.

The New York Delivers coalition said it organized the event at Thomas Jefferson Park to argue that Intro 518 threatens both delivery jobs and small businesses while driving up costs for consumers.

According to the coalition, as many as 10,000 delivery jobs across the city could ultimately be affected if the legislation becomes law, including roughly 3,500 last-mile delivery positions in Harlem and four neighboring City Council districts.

The coalition also noted that 82% of last-mile delivery workers do not hold college degrees and that 84% of the workforce consists of non-white employees. Organizers planned to feature drivers and business owners who contend the legislation would jeopardize their livelihoods.

The demonstration coincided with renewed lobbying by supporters of the Delivery Protection Act, underscoring the increasingly heated debate over whether New York should dismantle the subcontracting model widely used in the city’s delivery industry.

Among the measure’s critics is Rudy Cazares, a New York City resident who operates both an Amazon Delivery Service Partner business and a FedEx contracting company. He said the legislation would effectively destroy his business.

“I would be shutting my business down. I have no business,” Cazares told The Post.

Cazares said his company currently employs approximately 130 workers, with additional hiring during busy periods such as the holiday season. Drivers begin at $23.75 per hour, while experienced employees can earn approximately $27 per hour.

“All my employees are W2, either full time or part time with benefits, paying payroll taxes,” Cazares said.

He disputed claims that Delivery Service Partners merely serve as intermediaries shielding Amazon from responsibility, explaining that his company independently hires its workforce and manages its own fleet.

“They control the sorting of the packages. They stage them for us. We pick them up and we go deliver them,” Cazares said of Amazon.

While acknowledging that Amazon encourages its delivery partners to improve efficiency through technology and other measures, Cazares argued that policymakers should address any concerns without eliminating locally owned delivery companies.

“There’s been no dialogue that includes the small businesses that are the ones making this happen,” Cazares said.

“This direct hire mandate will eliminate every small business out there that delivers packages for any business,” he added.

Some city officials have also expressed reservations about the proposal.

“We want to make sure we don’t have unintended consequences,” Carlos Ortiz, deputy commissioner of external affairs for the Department of Consumer and Worker Protection, said during an April City Council hearing.

A spokesperson for City Council Speaker Julie Menin previously said the Manhattan Democrat intends to allow the legislation to continue through the normal legislative process while gathering additional feedback from affected stakeholders.

The Teamsters union strongly rejected Amazon’s arguments.

“Amazon will say or do whatever it takes to deny workers stronger rights and wages and abdicate its responsibilities for its own employees, which is why journalists are obliged to expose these greedy corporate tactics and not serve as stenographers for the company’s anti-worker propaganda,” Matt McQuaid, a spokesperson for the Teamsters union, told The Post.

FedEx also acknowledged the ongoing debate while referring questions about the legislation to the New York Delivers coalition.

“With the rise of e-commerce, last-mile delivery facilities for shipping and logistics businesses have become an increasingly essential part of the infrastructure that keeps New York City running,” a FedEx spokesperson told The Post.

“FedEx is aware of the proposed bill and is working with the New York Delivers coalition. Any questions on the legislation can be directed to them.”

{Matzav.com}