Zohran Mamdani’s Amazon regulation loses support as NYC councilman fears job losses

A New York City Democratic councilman has withdrawn his support for a controversial labour bill backed by Mayor Zohran Mamdani, citing concerns that the measure could lead to business closures and significant job losses, according to a report by the New York Post. Queens Councilman Phil Wong recently removed his name as a co-sponsor of the Delivery Protection Act after meeting with small business owners and logistics operators who warned that the legislation could have serious economic consequences. The bill, introduced by fellow Queens Democrat Tiffany Cabán, seeks to overhaul employment practices for "last-mile" delivery workers by requiring companies such as Amazon to directly employ delivery drivers rather than relying on subcontractors.“I’ve been talking to many of the small businesses,” Wong told the New York Post. “If this bill gets passed, it will close a lot of them and that’s bad for my district.”What the bill doesCouncilwoman Tiffany Cabán introduced the bill in 2025, and Wong signed on as a co-sponsor. After she reintroduced it this year, he supported it again. The legislation would end Amazon’s reliance on subcontractors by requiring it to obtain licences for its 15 last-mile facilities in the city and to hire delivery workers directly as full-time employees. Other companies, including FedEx, would face the same rules. According to Amazon, the bill would affect more than 5,000 delivery workers employed by about 40 third-party contractors. Amazon doesn’t directly employ delivery drivers anywhere in the US. It has threatened to close its New York last-mile warehouses and lay off about 2,000 workers there if the bill passes. An AKFR study commissioned by Amazon estimates that delivery costs for New Yorkers would rise by $664 a year, or about $5.20 a package.The Teamsters union, which strongly backs the bill, accuses Amazon of union-busting and of using the subcontracting model to dodge responsibility for worker and street safety. The union says Amazon has spent more than $5 million on a campaign against the bill.Amazon warns of warehouse closuresAmazon has strongly opposed the bill and has warned that it could shut down its last-mile warehouses in New York City if the legislation becomes law. The company has said such a move could result in the loss of about 2,000 warehouse jobs. The e-commerce giant also argues that consumers could face higher costs. A study commissioned by Amazon and conducted by AKFR estimated that New Yorkers' delivery costs could rise by an average of $664 annually, or roughly $5.20 per package, if the proposal is enacted.One unnamed council member who supports the bill's objectives but remains concerned about its consequences told the Post that many lawmakers may not fully understand the proposal's impact.“I agree with the intent of the bill to protect workers, but I’m concerned about people losing their jobs and the sponsor doesn’t deny that people will lose their jobs,” the council member said.Pressure on council membersOne of the bill’s 35 current co-sponsors, who asked not to be named, told the Post there is “tremendous political pressure” and that many colleagues, including the speaker, don’t fully understand the bill’s ramifications. The member agreed with its intent to protect workers but said the sponsor doesn’t deny that jobs will be lost. Wong’s chief of staff, Daniel Kurzyna, said the Teamsters called his office within minutes of the name being removed in September. “They noticed fast,” he said, adding that the union has called regularly since asking Wong to reconsider.Menin under pressure to schedule a voteRep. Ro Khanna, a California Democrat who is considering a 2028 presidential run, urged Council Speaker Julie Menin to schedule a vote, writing on X that delivery workers deserve safe and fair conditions. Menin, a centrist, has not taken a position on the bill. She has voiced concern that it could cause job losses and lead Amazon to raise prices. Mamdani and Teamsters members rallied at City Hall on October 22, urging her to call a vote immediately. Menin says the bill is being reviewed by the city’s Law Department, according to a spokesperson, who said she remains committed to legislation that protects workers and keeps the jobs in New York. Sources told the Post the Law Department is examining whether the bill violates the Federal Aviation Administration Authorization Act of 1994, which bars states from regulating the price, route or service of motor carriers. New York would be the first US city to adopt such a measure.Legal questions also under reviewBeyond the political debate, the bill faces legal scrutiny. According to the New York Post report, New York City's Law Department is examining whether the proposal could conflict with the Federal Aviation Administration Authorization Act of 1994, which limits states and local governments from enacting regulations related to the prices, routes or services of motor carriers. Speaker Julie Menin has not publicly endorsed or opposed the legislation but has expressed concerns that it could lead to job losses and higher costs for consumers. Her office said the bill remains under review and continues to move through the legislative process.The latest development highlights growing divisions within New York City's Democratic leadership as officials weigh worker protections against warnings from businesses that stricter regulations could prompt companies such as Amazon to scale back operations in the city.