Amazon.com Inc. has been determined to be the legal employer of a group of subcontracted delivery drivers, according to the US National Labor Relations Board (NLRB).
TakeAway Points:
- NLRB rules Amazon is a joint employer of subcontracted drivers, challenging its claim that drivers are solely DSP employees.
- The ruling requires Amazon to engage in negotiations with the Teamsters Union and impacts 280,000 drivers nationally.
- This decision might result in major adjustments to Amazon’s labour policies and even serve as a catalyst for more widespread unionisation initiatives.
NLRB’s stand on Amazon drivers
This decision challenges Amazon’s long-standing claim that these workers are solely employees of the small independent businesses, known as Delivery Service Partners (DSPs), that the company contracts with for its delivery operations. The NLRB’s general counsel office concluded that drivers in Southern California were employees of both Amazon and the DSP company that hired them, as stated by agency spokesperson Kayla Blado on Thursday.
The ruling came after the drivers, represented by the International Brotherhood of Teamsters’ Local 396 union in Palmdale, California, organized last year. The NLRB found that Amazon violated federal labor law by making illegal threats and refusing to negotiate with the union. The decision applies to approximately 280,000 drivers nationwide, potentially setting a precedent for other similar cases.
Amazon’s Reaction and Legal Implications
Amazon has not yet provided an official comment in response to the NLRB’s decision. Historically, the company has denied being the employer of its subcontracted drivers, maintaining that these workers are only employees of the DSPs. This stance has been a cornerstone of Amazon’s business model, which relies heavily on subcontracting to manage its vast delivery network.
The NLRB’s decision means that Amazon now has a legal duty to recognize and bargain with the Teamsters Union. This could lead to significant changes in how Amazon manages its delivery workforce and its relationships with DSPs. The NLRB will soon issue a formal complaint against Amazon, further escalating the legal and regulatory scrutiny the company faces.
The Win for Teamsters and Its Wider Effect
The Teamsters Union hailed the NLRB’s decision as a significant victory for Amazon delivery drivers. In a press release, the union emphasized that the ruling confirms Amazon’s status as a joint employer, thereby obligating the company to engage in collective bargaining with the union. This development is seen as a major step forward in the union’s efforts to improve working conditions and secure better wages and benefits for delivery drivers.
The decision could have far-reaching implications for Amazon’s labor practices and its broader business strategy. If upheld, the ruling may prompt other groups of subcontracted workers to seek similar recognition and bargaining rights, potentially leading to a wave of unionization efforts across Amazon’s delivery network.
Apple updates EU browser options
Maenwhile, Apple will change how users choose browser options in the European Union, add a dedicated section for changing default apps, and make more apps deletable, the company said on Thursday.
The iPhone maker came under pressure from regulators to make changes after the EU’s sweeping Digital Markets Act took effect on March 7, forcing it to offer mobile users the ability to select from a list of available web browsers on a “choice screen” the first time they open Safari.
