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COVID-19 Threatens Amazon Delivery Network

courtesy of Daimler A.G./Mercedes-Benz

Amazon.com Inc. (NASDAQ: AMZN) 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.

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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