11, 2022. (AP Photo/Rogelio V. FILE – The Amazon logo is pictured at the Amazon Robotic Sorting Fulfillment Center in Madison County, Miss., Aug. Solis, File)
In Montreal, Amazon continues to pay rent on more than 1.6 million square feet of vacant commercial space that cost hundreds of millions of dollars to build, with at least two sites listed for sublease. Former Amazon executive and logistics consultant Brittain Ladd warned that New York City could face an identical outcome: “Amazon wouldn’t blink about shutting down the 15 facilities in New York City if it felt that the legislation was a threat to its business model. Because it has to send a firm message to the rest of the country that ‘If you mess with us, this is what will happen’, “Amazon will retaliate,.
When you look at Amazon’s global operations, they close buildings left, right and center when there is union activity,” said Marc Wulfraat, president and founder of logistics consulting firm MWPVL International. This is about a model that could be copied in other cities.”
The proposed legislation would mandate that Amazon directly employ upwards of 5,000 delivery drivers across the five boroughs who currently work for independent third-party contractors. Experts warn the standoff could lead Amazon to not only pull those 5,000 contracted delivery roles out of the city, but also shut all 15 of its last-mile fulfillment stations across New York City, eliminating the jobs of 2,000 internal warehouse workers who staff them, according to a US media report.
Citing logistics analysts, the report says that Amazon has already demonstrated a willingness to abandon major municipal markets rather than alter its operational blueprint. Amazon has warned it could shut down more than a dozen warehouses and move thousands of delivery jobs out of New York City over the Delivery Protection Act, a labour bill championed by Mayor Zohran Mamdani . Industry analysts caution that the retail giant is very likely to follow through on the threat if the legislation passes, pointing to a recent decision where the company shuttered facilities in Canada rather than compromise on its logistics model. Supporters argue the policy will raise wages and enforce critical safety standards across delivery providers, including FedEx and DoorDash.
However, Amazon does not directly employ delivery couriers anywhere else in the US and has historically pushed back aggressively against structural changes to its labour arrangements.