FreshDirect workers poised to strike over third-party delivery proposal

Union workers at the grocery delivery company FreshDirect are preparing for a possible strike over the company’s proposal to outsource more deliveries to a third-party company.

FreshDirect’s drivers, runners and loaders are represented by United Food and Commercial Workers (UFCW) Local 2013, which has a bargaining unit of about 670 employees.

The current contract, which expired at the end of 2025 and was extended until Feb. 6, allows 14% of deliveries to be handled by third parties. In negotiations, FreshDirect is now proposing to increase that number to 40% this year, 50% in 2027 and 60% in 2028, which UFCW members say will result in the loss of union jobs.

UFCW employees with FreshDirect, headquartered in the South Bronx at 2 St. Ann’s Ave., held practice pickets this week at the Brooklyn location, joined by Council Member Alexis Avilés and Assembly Member Marcela Mitanyes, and in Hackensack, New Jersey. The union remains in negotiations with the company.

Longtime workers say their main fight is not about increasing wages or benefits but preserving job stability.

Wilfredo Chapel, 40, has worked for Fresh Direct for 15 years and told the Bronx Times there is “a lot of tension” surrounding the delivery proposal. As a union shop steward, he said he’s receiving “nonstop” calls from concerned employees.

Chapel said his career at Fresh Direct has allowed him to support a good lifestyle and put two of his four children through college. He said he’s generally satisfied with his pay and benefits, which have gotten “better and better” over the years.

For instance, in the last round of negotiations, workers won a 401(k) match, whereas they previously had retirement options with no company match, Chapel said.

“Things just started getting better, and now you’re gonna rip it away from us.”

The union battle comes amid rising demand for workers in the processes of home delivery. For instance, delivery truck driver jobs are expected to grow by 8% by 2034 — much faster than average industry growth, according to the U.S. Bureau of Labor Statistics.

Even if Chapel could easily get hired elsewhere, he said he worries about losing seniority. Having to start at a new company would likely involve “basically putting me back down” with the most undesirable schedule and routes, he said.

Chapel said he also worries about the effect on customer service if external parties take over most of the company’s deliveries.

Many FreshDirect customers see the same workers repeatedly and build relationships with them, he said. Current workers care about the small touches, such as calling customers as soon as a delivery arrives, not crushing fragile items or lifting heavy beverage cases out of bags for elderly customers, Chapel said.

The company has said no workers would be laid off from its proposal. In a statement to the Bronx Times, a FreshDirect spokesperson said the company committed to no layoffs during the contract term and guaranteed weekly hours for hourly employees, neither of which currently exists.

“FreshDirect is seeking increased flexibility with third-party delivery options for the long-term sustainability of the business, to preserve jobs, and to remain competitive in an increasingly dynamic and cost-sensitive on-demand delivery market,” the statement said in part.

But Chapel said he worries that the company’s proposal means it is gradually moving to eliminate UFCW’s segment of the workforce altogether.

“I thought I was secure in my job — until recently,” he said.

Establishing in the South Bronx

The presence of FreshDirect in the South Bronx has been controversial from the start, when the company moved its headquarters from Long Island City to Port Morris and opened in 2018.

Elected officials cut the ribbon at FreshDirect’s headquarters in Port Morris in 2018. Photo by Aracelis Bautista

In 2013, the local nonprofit South Bronx Unite sued the city and state to try to block the move, arguing that FreshDirect’s presence would increase traffic congestion, air pollution and noise while providing mainly low-paying jobs.

Since opening in Port Morris, FreshDirect has partnered with prominent organizations, including the New York Yankees and City Harvest, and says it has hired 1,300 Bronx residents annually.

But UFCW leaders slammed the company’s third-party delivery proposal, saying it undermines the promises made when it established itself in the Bronx.

“FreshDirect workers have spent years negotiating strong union contracts that establish safety standards, create fair working conditions, and improve the lives of workers. But FreshDirect wants to outsource the hard work of the dependable workforce who built this business — a direct trade of good, union jobs for low-paying, zero-benefit gig work,” said UFCW Local 2013 President Louis M. Carotenuto in a statement.

Carotenuto also pointed to $130 million in city subsidies the project received to move its headquarters to the Bronx in exchange for providing thousands of good jobs for locals.

“FreshDirect has received millions of taxpayer dollars because they were creating full-time, union jobs for members of the community. New York is a Union town, and we’re going to fight for these good union jobs for our members and all working New Yorkers.”

Reach Emily Swanson at eswanson@schnepsmedia.com or (646) 717-0015. For more coverage, subscribe to our newsletter and follow us on Twitter, Facebook and Instagram!