Prosecutors at the National Labor Relations Board (NLRB) in Los Angeles have ruled that Amazon is a joint employer of subcontracted drivers in California, countering the company’s stance that these drivers are not its employees. This decision arose from an investigation into unfair labor practice charges filed by the Teamsters union, which has been attempting to unionize Amazon drivers.
The Teamsters argue that Amazon exercises significant control over the drivers, despite the company’s reliance on third-party businesses known as Delivery Service Partners (DSPs), which employ over 275,000 drivers.
The Teamsters have claimed that Amazon’s control over drivers’ routes, delivery targets, and performance monitoring should classify it as a joint employer. This argument gained traction after the union succeeded in unionizing a group of drivers working for a DSP in Palmdale, California, called Battle Tested Strategies.
When Amazon refused to negotiate a union contract with these drivers, the Teamsters filed several unfair labor practice charges against the company.
NLRB prosecutors found merit in three of these charges, including the claim that Amazon and Battle Tested Strategies were joint employers. Additionally, they determined that Amazon made unlawful threats, failed to provide necessary information to the union, and unlawfully refused to bargain over the termination of the DSP’s contract.
These findings indicate significant legal issues for Amazon regarding its relationship with subcontracted drivers.
However, some charges against Amazon were dismissed by the prosecutors, including the allegation that Amazon’s termination of its contract with the unionized DSP was retaliatory. The next steps could involve litigation if a settlement is not reached.
The case would be heard within the NLRB’s administrative law system, and Amazon would have the option to appeal any unfavorable rulings to higher authorities, including federal courts.
Amazon has dismissed the merit of the Teamsters’ claims, expressing confidence that any remaining allegations will be dismissed if the case proceeds to litigation.
On the other hand, Teamsters General President Sean M. O’Brien praised the NLRB’s findings, highlighting the importance of the determination that Amazon is legally obligated to negotiate with its drivers regarding their working conditions.
