(The Center Square) — New York City may face a lawsuit if Mayor Eric Adams signs off on a proposal to raise wages for food delivery workers.
The trade group behind the threat, as well as many of its allies, say the plan will raise grocery prices and reduce jobs.
The Democratic-led City Council approved a proposal in July that would require app-based delivery companies to shell out an hourly minimum of $21.44 to grocery delivery workers and expand their labor protections.
In a letter to Adams, Instacart Chief Corporate Affairs Officer Dani Dudeck threatened legal action if the mayor didn’t veto the proposal. She said the legislation would have “devastating” impact on grocery delivery services they
“If bill 1135-A becomes law, thousands of New Yorkers will lose their ability to do delivery work,” Dudeck wrote. “At the same time, delivery costs on consumers and local grocers would skyrocket — threatening access for countless New Yorkers who rely on grocery delivery as a lifeline for food, medicine, and other daily essentials.”
Democrats who approved the plan say grocery delivery workers are among the lowest paid in New York City and argue that companies like Instacart and Shipt can afford to pay them more for their work.
“Delivery workers provide essential labor, and it’s critical that our city continues to expand protections that advance their safety, health, and dignity to make our growing delivery sector sustainable,” Speaker Adrienne Adams, a Democrat, said in a statement. “The Council is proud to continue advancing legislation that improves equity, safety and sustainability of the delivery sector for its workers and all New Yorkers.”
Instacart launched a TV and digital ad campaign claiming the changes would lead to fewer work opportunities, rising grocery delivery costs, and cuts in service for “vulnerable” customers.
The National Supermarket Association, which represents independent grocers, also opposes the legislation and has warned that it will “trigger steep fee hikes” and worsen the “financial strain” impacting small grocery stores.
The trade group said the legislation will “inflict profound harm upon hundreds, if not thousands, of already struggling small grocery stores. It also urged Adams to veto the proposal.
“This pain would be felt most acutely by the city’s independent grocers — those without the scale or cushion of national chains,” the group wrote in an op-ed published earlier this week. “New York’s Independent grocers are already facing historic challenges, including inflation, soaring rents, rising retail theft, shrinking margins, and the rapid expansion of chain supermarkets and big-box retailers.”
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Adams’ potential veto comes amid the backdrop of the mayoral race. Front-running candidate Zohran Mamdani, a state assemblyman from Queens, wants to establish five government-run grocery stores as part of his democratic socialist platform.
The idea has been lauded as a lifeline for 3 million residents struggling to afford groceries. Adams has been dismissive of the proposal, while critics have likened it to “Soviet bread lines.”