COVID-19 Threatens Amazon Delivery Network

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By Douglas A. McIntyre Published
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COVID-19 Threatens Amazon Delivery Network

© courtesy of Daimler A.G./Mercedes-Benz

Amazon.com Inc. (NASDAQ: AMZN | AMZN Price Prediction) is one of the few U.S. companies that continue to operate at full speed. As a matter of fact, it needs to hire 100,000 full-time and part-time workers to keep its massive distribution system at maximum capacity. However, COVID-19 has become a threat to that system. Workers already have begun to fall ill.

Amazon’s New York City Queens delivery station was temporarily shuttered because a worker tested positive for coronavirus. Amazon’s warehouse and delivery station operation is at particular risk because, in many situations, one ill worker is a threat that others who work in the same place. Other people in the location can be asked to self-quarantine for 14 days. At that point, Amazon faces a difficult choice, which is to close down part of its spider-web-like process to get goods from where are sourced to the addresses of both individuals and businesses. Alternatively, it can keep its operation running with some risk to workers.

A few Amazon employees already have begun to question the methods the e-commerce giant uses to protect warehouse and delivery station workers. Some of these workers have complained that, while Amazon has allowed most other employees to work from home, hourly workers at its distribution centers are expected to show up to do their jobs every day. Of course, Amazon has no alternative if it wants to keep its business operating nationwide.

Beth Galetti, senior vice president of Human Resources at Amazon, penned a blog post to the company’s workers. “The health and safety of our employees and contractors around the world continues to be our top priority as we face the challenges associated with COVID-19.” When Amazon employees are diagnosed with the virus or put into quarantine, the company will pay them for two weeks. It begs the question of how Amazon expects to keep people from contracting the virus at all.

Amazon workers have to be puzzled about why large facilities and factories at other companies have been shuttered. General Motors, Ford and Fiat Chrysler have closed their U.S. manufacturing facilities until at least March 30. Over the period, the companies will “deep clean” their locations. The decisions were made under pressure from the United Auto Workers union.

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Amazon workers do not have a powerful union like the UAW. They have their jobs as long as they stay healthy. If by growing numbers they do not, Amazon faces the fact that it may be unable to fulfill all the unprecedented demand.

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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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