NLRB Prosecutor: Amazon Jointly Liable for Contractor's Anti-Union Tactics

A National Labor Relations Board (NLRB) prosecutor has determined that Amazon.com Inc should be held jointly accountable with a contractor for allegedly employing unlawful strategies to deter delivery drivers in Atlanta from unionizing, as reported by an agency spokesperson on September 4, 2023. This decision comes approximately one year after Amazon's first successful union campaign at a New York City warehouse, marking a significant shift in the company's labor relations landscape.

The announcement follows a similar conclusion reached by a different NLRB regional director in Los Angeles just weeks prior. Both cases suggest that Amazon could be classified as a "joint employer" of its contractors' employees, potentially obligating the e-commerce giant to engage in collective bargaining with unions representing these workers.

The International Brotherhood of Teamsters, which is spearheading efforts to organize Atlanta-based drivers employed by Amazon contractor MJB Logistics, alleges that both companies have impeded unionization efforts through unlawful threats and creating an impression of surveillance among drivers.

Amazon, founded by Jeff Bezos in 1994, has historically maintained that it does not exert sufficient control over contractors' drivers to be considered their joint employer. However, this stance is now being challenged on multiple fronts. The company, which began as an online bookstore and has since diversified into numerous product categories and services, including the launch of Amazon Web Services (AWS) in 2006, now faces potential labor complications across its vast network of contractors and employees.

The joint employment issue has been a contentious topic in U.S. labor relations for the past decade. The NLRB's criteria for determining joint employer status has fluctuated several times since the Obama administration, with business groups advocating for a test requiring direct and immediate control over workers, while unions and Democrats support a standard encompassing indirect forms of control.

In July 2023, the NLRB withdrew its appeal of a judge's ruling that had invalidated a rule making it easier to hold companies liable as joint employers. This development adds another layer of complexity to the ongoing labor disputes involving Amazon.

"The regional directors will issue formal complaints against Amazon unless the company settles."

The potential classification of Amazon as a joint employer under federal labor law could have far-reaching implications, possibly extending to cases involving other Amazon contractors and compelling the company to negotiate with drivers' unions across its operations.

Amazon, now led by CEO Andy Jassy since July 2021, is also confronting constitutional challenges to the NLRB's structure and in-house enforcement proceedings. In February 2023, the company raised these claims as potential defenses in an administrative case alleging retaliation against union supporters at a New York City warehouse.

As Amazon continues to expand its physical retail presence with innovative concepts like Amazon Go stores and invests heavily in artificial intelligence and machine learning, these labor disputes could significantly impact its future operations and growth strategies. The company's ability to navigate these complex labor relations issues may prove crucial as it strives to maintain its position as a global e-commerce and technology leader while addressing concerns about working conditions and unionization efforts among its vast workforce.