Amazon delivery could change in Chicago under proposed ordinance

CHICAGO - It's a proposed ordinance that could change the way companies like Amazon do business in the City of Chicago. 

Amazon delivery ordinance

The backstory:

Some alders are proposing new licensing requirements, and banning Amazon's subcontractor delivery business model. 

The proposal, introduced by 12th Ward Ald. Julia Ramirez, would create new licensing requirements for last-mile delivery companies and change the way companies like Amazon use third-party delivery providers. 

Amazon delivery drivers were at Chicago City Hall Tuesday rallying in support of the proposed Delivery Protection Act. 

While those workers are contracted to deliver packages for Amazon, they're employed by delivery service partners, or DSPs. That third-party model is at the center of the debate.

Michael Daddio works for one of those companies. He says consumers often don't realize the distinction.

"There's been countless amount of times the consumer I've delivered to and they ask and they're so unaware to the fact that we don't work for Amazon right?" said Daddio.

Daddio says the demand on drivers has increased significantly.

"When I first started, you were expected to do 15 to 20 stops an hour. Right now, day to day, it's like 30 to 35 stops an hour right now every year," said Daddio. 

He says drivers are dealing with larger routes, more packages and pressure to keep up. Daddio also argues Amazon has significant control over how the delivery operation works, including the routes, package sizes and locations where drivers deliver. He also told Fox Chicago drivers face a difficult choice when they believe something is unsafe.

"You're stuck between taking a risk of telling the truth or grounding the vehicle and being retaliated against for taking such action," said Daddio. 

Supporters of the ordinance say that is exactly why they want more city oversight.

Ramirez says convenience cannot come at the expense of workers or neighborhood safety.

"The convenience of same delivery cannot come at the expense of workers or the safety of our neighborhoods," said Ramirez.

The proposal includes licensing requirements, safety standards, disclosure of previous violations and requirements addressing road, pedestrian, building and zoning safety. Supporters also point to data they say shows a dramatic increase in delivery-related crashes over the last decade.

Business groups push back

But the proposal is facing opposition from Chicago's business community. The Chicagoland Chamber of Commerce is part of a coalition of businesses urging the City Council to reject the last-mile delivery ordinance. 

The business community's argument is that the proposal could impose new costs and requirements on delivery companies and the small businesses operating them. That concern is shared by at least one Amazon Delivery Service Partner owner.

Mohammed Khan owns Star Fleet Logistics. He says his company is focused on keeping jobs in Chicago, but says the proposed regulations could make that impossible.

"What I'd like to be able to do is run my business my way that helps out the drivers more so than having to work out different regulations that are extremely costly," said Khan. "The main thing that we're focused on is trying to keep these jobs here in Chicago and that includes three million dollars income that would otherwise not get paid if these regulations would pass we would have to close down."

Khan says his company employs drivers and provides benefits including health care, dental and vision coverage, retirement and tuition reimbursement. He also says his company does push back when it believes delivery expectations are unsafe.

"We certainly are aware that the quotas can get to be excessive," said Khan. "Our main priority is safety." 

Khan says Amazon has worked with his company to adjust delivery expectations when necessary. He says his company also uses rescue drivers and additional help to keep workers from becoming overburdened.

What they're saying:

Amazon responds

Amazon did not directly comment on the proposed ordinance, but sent Fox Chicago a statement saying: 

"We're committed to creating good jobs, supporting our employees and local small business partners in Chicago, and providing fast, affordable delivery in a safe working environment. Delivery Service Partners in Chicago are independent, locally owned small businesses that collectively employ more than 1,000 people — 85% are minority-owned, including 54% Black or Hispanic-owned and 15% veteran-owned. These entrepreneurs have built real businesses, with good paying jobs, in their communities. DSP drivers in Chicago earn an average of nearly $23 an hour and all DSPs offer healthcare coverage for full-time employees and paid time off. Many also offer retirement accounts, tuition reimbursement, and career development opportunities for the Chicagoans they employ."

What's at stake

The two sides are offering very different pictures of the current delivery system.

Teamsters and supporters of the ordinance say Amazon has too much control over drivers while avoiding direct responsibility because those workers technically work for independent delivery companies.

Business groups and DSP owners say those independent companies are small businesses that provide jobs and benefits — and that imposing new regulations could put those companies out of business.

Daddio says the current system needs to change.

"We are the ones that do that last mile delivery," said Daddio. "At the end of the day, us as drivers we should be able to say enough is enough and we're worth more than that."

What's next:

The Delivery Protection Act is moving through the Chicago City Council process.

The Teamsters are calling on aldermen to support the measure.

The Chicagoland Chamber of Commerce and a coalition of businesses are urging aldermen to reject it.

 

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