Amazon Faces Mounting Union Pressure as NLRB Case and Teamsters Wins Converge

Amazon is confronting fresh labor challenges on two fronts: a National Labor Relations Board (NLRB) case in California that could redefine its relationship with contract drivers, and a string of Teamsters victories across its Whole Foods supply chain. Together, the developments signal union momentum inside Amazon’s broader logistics ecosystem, with potential ripple effects for labor classification and operating costs.

NLRB Hearing on Contract Drivers

In Los Angeles, labor board prosecutors argued that Amazon exerted “overwhelming control” over subcontracted drivers in Palmdale, California, despite maintaining they were not employees.

“Amazon structured its logistics network to maintain all the benefits of control while denying any responsibility as an employer,” said Sanam Yasseri, an attorney for the NLRB’s general counsel. She told the judge that Amazon “controls every minute of the drivers’ day.”

Yasseri detailed conditions imposed on delivery service partners (DSPs), noting that Amazon required drivers to be trained under its policies, dictated wages and schedules, and monitored workers in real time. “The drivers worked under the constant monitoring and daily critique of Amazon,” she said.

Amazon rejected those claims. Company attorney Brian Stolzenbach told the judge the complaint should be dismissed, calling subpoena requests into its joint employer status a “fishing expedition.” “Amazon is not going to participate in the misuse of the NLRB’s processes,” he said.

Amazon spokesperson Eileen Hards added in an email that the company looks forward to demonstrating the allegations have “no merit.”

Teamsters Expand Through UNFI, a Key Amazon Supplier

At the same time, the Teamsters are building momentum at United Natural Foods Inc. (UNFI), a major distributor to Amazon-owned Whole Foods. In Richburg, South Carolina, workers voted 27–15 to join the Teamsters, a move the union quickly tied to Amazon.

“The victory is the latest in a wave of Teamsters organizing wins at the nation’s largest distributor for Amazon-owned Whole Foods,” the union said in a prepared statement.

Across UNFI, the Teamsters report more than 3,000 new members in recent years, bringing the total above 5,000. In 2025 alone, NLRB records confirm union wins in Richburg and Pompano Beach, Florida, while earlier this year over 1,000 UNFI workers in three states ratified a contract providing “significant wage increases, improved benefits, and a defined benefit pension plan.”

UNFI has acknowledged ongoing organizing efforts, telling FreightWaves: “Where our associates are represented, UNFI maintains constructive relationships with those unions, and we bargain in good faith to reach agreements that are fair to both sides.”

What It Signals

These parallel developments point to three critical signals for Amazon and the broader logistics sector:

• Union momentum inside Amazon’s ecosystem: Even if direct Amazon warehouse campaigns have faltered, Teamsters gains at Whole Foods’ distributor show unions can still expand influence through supply chain partners.
• Legal precedents on labor classification: If the NLRB judge finds Amazon a “joint employer” of contract drivers, the decision could reshape how gig-style logistics models are treated under federal labor law.
• Labor cost inflation: From potential bargaining obligations with DSP drivers to higher wages at UNFI, the cost base across Amazon’s logistics operations could rise if union pressure continues.

Source: Transport Topics | FreightWaves