Amazon faces new NLRB complaint over joint employment with contractors

Amazon's legal trouble: The National Labor Relations Board (NLRB) prosecutor has determined that Amazon should share liability with a contractor for allegedly employing unlawful practices to dissuade delivery drivers in Atlanta from unionising. This was announced on Wednesday by NLRB spokesperson Kayla Blado.

This latest complaint follows a recent decision by a different NLRB regional director in Los Angeles, who also recommended that Amazon be deemed a "joint employer" with another contractor's workforce, thus obliging Amazon to negotiate with unions.

The regional directors will formalise complaints against Amazon unless the company opts to settle, Blado stated.

Union efforts stymied

The International Brotherhood of Teamsters, which aims to organise Atlanta-based drivers working for Amazon contractor MJB Logistics, accuses both Amazon and the contractor of illegal tactics to hinder union efforts. These alleged tactics include making unlawful threats and creating the impression of surveillance over drivers.

In Los Angeles, the issue centres around Amazon's alleged illegal termination of its contract with a company employing unionised drivers, without negotiating with the Teamsters.

A ruling that Amazon qualifies as a joint employer under federal labour laws could have broader implications, potentially affecting other contractors and compelling Amazon to engage in negotiations with driver unions.

Amazon, which has previously argued that it does not exert sufficient control over contractor drivers to be deemed their joint employer, has not yet responded to requests for comment.

Should formal complaints be issued, they will be adjudicated by NLRB administrative judges, with their decisions subject to review by the five-member NLRB and possible appeal to federal appellate courts.

Shifting labour standards

The issue of joint employment has been a major topic in US labour law, with standards fluctuating over the past decade. The NLRB's criteria for joint employment have shifted since the Obama administration, with business groups advocating for a test requiring direct control, while unions and Democrats support a broader standard covering indirect control.

In the previous year, the NLRB introduced a rule making it easier to hold companies liable as joint employers, but in July, the board abandoned its appeal of a judge's ruling that invalidated this rule.

Amazon has also raised constitutional concerns regarding the NLRB's structure and enforcement procedures, asserting these issues as potential defences in an ongoing administrative case concerning alleged retaliation against union supporters at a New York City warehouse.

Last week, the NLRB upheld the union's 2022 election victory at this facility, marking the first successful unionisation effort in Amazon's history. However, separate claims regarding Amazon's refusal to negotiate with the union remain unresolved.

(With Reuters Inputs)