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Amazon has suffered another blow in its resistance to unionization in its workforce, with drivers now being represented by the powerful Teamsters union, following a NLRB ruling.
In a significant blow to Amazon's long-standing resistance to union practices, the National Labor Relations Board (NLRB) has ruled that the e-commerce giant is a joint employer of its Delivery Service Partner (DSP) drivers, marking a turning point in the ongoing battle for workers' rights within the company.
The decision, centered on Amazon drivers in Palmdale, California, represented by Teamsters Local 396, and sets a precedent that could potentially impact nearly 280,000 DSP drivers across the United States. The ruling obliges Amazon to recognize and bargain with the Teamsters Union, dismantling the company's previous attempts to distance itself from direct employment responsibilities through its DSP program.
The NLRB's findings come on the heels of another significant setback for Amazon in Wisconsin. The Wisconsin Supreme Court recently dismissed an appeal by the company, upholding a 2023 ruling that classified some delivery drivers as employees rather than contractors. This unanimous decision has far-reaching implications for workers' rights and unemployment insurance in the state, particularly affecting drivers in the Amazon Flex program who use personal vehicles for deliveries.
Amazon's stance on labor relations
The developments signal a rapid shift in Amazon's stance on labor relations. The company, which has historically resisted unionization efforts, now faces mounting pressure to address workers' concerns and engage in collective bargaining.
Teamsters General President Sean M. O'Brien hailed the NLRB decision, stating: "Amazon drivers have taken their future into their own hands and won a monumental determination that makes clear Amazon has a legal obligation to bargain with its drivers over their working conditions."
The Palmdale case has exposed a litany of alleged unfair labor practices by Amazon, including threats of job loss, intimidation tactics, and retaliation against unionized workers. Such actions have fueled a broader movement, with Amazon workers in other locations, such as Skokie, Illinois, launching their own strikes and filing unfair labor practice charges.
The ripple effect of the rulings is already apparent. In June, over 5,500 members of the Amazon Labor Union in New York voted overwhelmingly to affiliate with the Teamsters, further consolidating the union's presence within Amazon's workforce.
As Amazon grapples with legal and organizational challenges, the company may be forced to reconsider its approach to labor relations. The joint employer determination dismisses Amazon's previous claims that DSP drivers were not official employees, potentially opening the door for improved working conditions and benefits for hundreds of thousands of workers.
