When Companies/Vendors Are Linked to Deaths, Amazon Cuts Ties and Contracts

Did you know that over 2,000 workers in eight different states are going to lose their jobs because Amazon is dropping three different major delivery firms after news and media mentions? Amazon abruptly canceled their contracts even though doing so will leave thousands out of work. This move seems to indicate a change in how the massive online retailer plans to fulfill millions of orders with millions of packages being delivered across the nation daily. 

The 3 Major Delivery Firms Losing their Amazon Contract: 

Inpax Shipping Solutions is based out of Atlanta, Georgia. They’ve estimated that the loss of the Amazon contract will result in approximately 925 layoffs in six different states. Layoffs began at the beginning of October 2019. They will stop all services for Amazon by the beginning of December.  

Sheard-Loman Transport is located out of Chicago, Illinois. They described the loss of the Amazon contract as entirely unexpected. In a recent court filing, they noted that the Amazon contract would not be renewed, and it was cause for serious concern. The loss of the Amazon contract will lead to the termination of about 200 employees in three different states across the nation. This shipping company stopped delivering Amazon orders in September 2019. 

Letter Ride LLC, out of San Diego, California, will also be losing its Amazon contract. They will start laying off approximately 897 drivers, dispatchers, and other workers in December 2019. 

All three contract terminations follow investigations by online news sources into Amazon’s delivery network’s explosive growth. The investigations focused on extreme financial pressure combined with intense deadline pressure from Amazon on their ever-growing fleet of delivery companies and independent contractor drivers. The reports indicated that the situation often leads to mistreatment of the workforce and a threat to the public’s safety. In the course of the investigation and the following report, numerous deaths were linked to each of the above-noted delivery service companies. 

Loved ones of the victims actively seek changes to the way Amazon manages their delivery forces. They wish for a higher prioritization of worker and pedestrian safety when contracting out to various last-mile delivery services. Instead of seeing progressive change in policy or management practices, these advocates of driver and pedestrian safety claim they only see Amazon attempting to hide behind third-party contractors to escape their responsibility for the situation. 

Amazon claims they work with many different carrier partners to successfully deliver packages to their customers and that they perform regular evaluations of the partnerships. They confirm they have ended their relationship with the above companies, but also state that drivers are being supported by the opportunity to provide delivery services through other local delivery service partners.  

Amazon delivery service partners see frequent employment lawsuits, some of which name Amazon as a joint employer. Employment law violations alleged often include wage and hour violations, overtime claims, failure to pay minimum wage and overtime, and other FLSA violations. 

If you need to discuss potential legal responses to a breach of contract or other employment law violations, please don’t hesitate. Get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.