NYC delivery worker bill could put thousands of jobs at risk, analysis finds
TheGrio...
The proposed Delivery Protection Act could disproportionately affect workers of color, outer-borough residents and minority-owned delivery businesses.
A proposed New York City law intended to strengthen protections for delivery workers could put thousands of jobs and minority-owned businesses at risk, according to a recent analysis.
Ty Barnes, CEO of NorthStar Logistics, a South Bronx-based last-mile delivery company, said Intro 518 could eliminate the business model that allows his company to operate.
“If the bill is passed the way that it’s currently written, there will be no third-party contracting, no last-mile delivery,” Barnes told TheGrio. “There would be no more NorthStar Logistics. We would be out of business.”
Intro 518, also known as the Delivery Protection Act, would require operators of certain warehouses and storage facilities that deliver goods to consumers in New York City to obtain a license from the Department of Consumer and Worker Protection. The proposed license would include safety, training and employment requirements.
A September analysis released by New York Delivers examined the legislation’s potential impact on workers and communities of color. The analysis draws on a study conducted by AKRF, an economic and transportation consulting firm.
John Neill, senior vice president at AKRF, said the makeup of the last-mile workforce matters when considering who could be affected by industry changes.
“The workforce is disproportionately composed of workers of color, outer-borough residents, and workers without college degrees,” Neill told TheGrio in an emailed statement.
About 80% of the last-mile workforce is people of color, while 83% live in the outer boroughs. Queens accounts for 36% of the sampled workforce, and nearly half live in census tracts designated as Disadvantaged Communities.
The study modeled three potential scenarios for how the industry could respond to Intro 518. The low-impact scenario estimates 3,000 to 5,000 New York City jobs could be at risk, while the moderate scenario estimates 6,000 to 9,000. In the high-impact scenario, 10,000 or more jobs could be at risk.
Those figures do not mean the jobs would necessarily disappear, Neill said. They could instead be affected by relocation, consolidation or other restructuring.
“For workers, that could mean job loss, longer commutes, or disruption to existing employment opportunities,” he said.
Relocating operations outside the city would be difficult for Barnes’ employees, many of whom do not have personal vehicles.
“If we have to move operations to, let’s say, New Jersey, Long Island, or upstate New York, then how would my current employees be able to work?” Barnes asked.
Moving last-mile facilities outside the city could result in longer commutes, higher transportation costs and fewer transit options, according to the study. It did not estimate how many workers would retain their jobs because the outcome would depend on where facilities moved, employer decisions and individual circumstances.
“What the analysis does suggest is that relocation could make many of these jobs less accessible to the current workforce,” Neill said.
Barnes is also concerned about what his employees could lose if NorthStar closes. He said the company offers tuition reimbursement and helps workers advance their careers.
“Many of them are fresh out of being incarcerated and are in situations where they don’t have many opportunities,” Barnes said. “That’s when I step in to give them that foot in the door.”
More than 100 subcontracted last-mile delivery businesses may operate in New York City, according to the analysis. Many are minority-, immigrant-, veteran- or family-owned, with firms disproportionately concentrated in the Bronx, Queens and Brooklyn.
Barnes said his relationship with employees also extends beyond the workplace. He recalled an employee who was stabbed four times on a train and called him afterward. Barnes said he went to the hospital to make sure the employee was safe.
“That’s something that would be lost,” Barnes said, describing his relationship with employees as that of “a big brother, that uncle, that father figure that’s in the community.”
The study also identified potential trade-offs policymakers should consider, Neill said.
“While the legislation is intended to improve conditions for workers, policymakers should also consider how industry responses could affect employment opportunities, job accessibility, and economic activity in the same communities the legislation is intended to benefit,” he said.
Barnes said he supports protecting delivery workers but wants business owners included in the discussion.
“I think we deserve a conversation,” he said, noting that “We have a piece of this pie, too.”
“We want our drivers, we want our employees to be protected so we can come to a conclusion,” Barnes added.