Teamsters File Complaint Over Amazon's Job Cuts, Demand Investigations

The Facts -

  • Amazon is the top violator of New York's WARN Act, says a new report.
  • The Teamsters filed a complaint seeking Amazon's compliance with labor laws.
  • Amazon could owe $11 million in back wages for sudden job cuts since 2018.


Teamsters Accuse Amazon of Disregarding Labor Laws in New York

(NEW YORK) – In a significant development, the Teamsters, alongside the National Employment Law Project, the Action Lab, and the Alliance for a Greater New York, have made public a new report accusing Amazon of leading the state in violating the New York State Worker Adjustment and Retraining Notification (NY WARN) Act. The report highlights Amazon's extensive layoffs and its alleged failure to adhere to labor laws.

The Teamsters have taken further action by lodging a formal complaint with the New York Department of Labor. They are calling for an investigation into Amazon’s use of third-party contractors, known as Delivery Service Partners (DSPs), which they claim the company uses to evade legal responsibility towards its employees.

Randy Korgan, Director of the Teamsters Amazon Division, expressed strong criticism, stating, “This is yet another reason why Amazon is a parasitic white-collar crime syndicate... the Teamsters have bad news for Amazon: the law has a way of catching up with you.”

The NY WARN Act mandates that employers with over 50 workers in the state must provide either severance or at least 90 days' advance notice before conducting mass layoffs affecting 25 or more employees. Despite this, many DSPs, heavily reliant on Amazon, close down when their contracts are terminated, resulting in significant job losses without notice.

Tom Gesualdi, President of Teamsters Joint Council 16, criticized Amazon, saying, “Amazon sells itself to communities as a ‘job creator,’ but today’s revelations should dispel that notion completely. The Teamsters and our allies will not allow Amazon to continue harming its workers or our communities with its illegal actions.”

According to the report, since 2018, Amazon has caused the closure of 35 DSPs in New York, leading to the loss of over 3,500 jobs. This accounts for a significant portion of layoffs in the state's transportation and warehousing sector, with 25% of laid-off workers since 2023 being Amazon drivers. The company may owe up to $11 million in unpaid wages due to lack of notice.

Maria Degante, a former worker at Amazon’s DBK4 location in Queens, shared her experience, stating, “I worked for two DSPs that Amazon closed without enough notice or severance, leaving me and my family stranded.” She emphasized the need for collective action to secure the owed wages and support the Delivery Protection Act.

The Delivery Protection Act is a legislative proposal that aims to end Amazon’s subcontracting tactics and demand direct hiring of drivers by the company. Teamsters and allies are advocating for its passage in New York City.

Paul Sonn from the National Employment Law Project remarked, “This report, which shows frequent mass layoffs and WARN Act violations at Amazon’s captive DSPs, highlights that they are not bona fide independent businesses but pawns of a giant corporation that needs to be held accountable for their operations.”

Campaign leaders, such as Daisy Chung, ALIGN Campaigns Director, argue that Amazon places profits over people, causing job losses and community harm. The urgent call is for the Delivery Protection Act to be enacted to ensure accountability.

Irene Tung of the Action Lab emphasized the recurring pattern of Amazon's actions, stating, “This new data shows that Amazon is disproportionately behind sudden, permanent closures in the transportation and warehousing sector in New York.” She urged for immediate legislative reform to hold Amazon accountable.

For further information, visit Teamster.org. Stay connected with the Teamsters on @Teamsters and Facebook.com/teamsters.

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