KEY POINTS
- Some staff members at various Amazon facilities have been infected by the coronavirus
- Amazon management has threatened disciplinary action against staff who fail to follow norms
- Company is nearing its recruitment target to meet a spike in online deliveries
Amazon is tightening social distancing norms for its staff amid an apparent spike in coronavirus infections among warehouse employees as the e-commerce giant struggles to meet the pandemic-driven rise in demand for home deliveries. But the global pandemic has also caused fear and frustration among its workers, who have staged walkouts accusing the company of inadequate safety measures and insufficient paid leave as about 50 facilities report infections.
On Monday (April 6), a facility in Staten Island saw dozens of workers walking out for a second time, one week after holding an initial strike, a Yahoo Finance report said. Employees claimed that 26 cases of the virus had been reported at the warehouse, a sharp increase since the first reported case at the facility on March 24.
The walkout was called by Chris Smalls, a former Amazon worker, who claims to have lost his job after complaining about lax safety at the Amazon workplaces. Smalls had led another similar strike last week. Smalls has called for the company to halt operations because of the pandemic. Amazon said he was fired for violating the company's quarantine rules.
Social distancing guidelines
The Seattle-based company with sprawling facilities across the country says it has warned the staff of strong action if found violating the social distancing guidelines. It is warning in writing warehouse staffers who fail to keep a distance of 6 feet from colleagues, which is considered necessary to reduce the spread of the pandemic, of more action and further violations could result in firing, a CNBC report said.
Amazon has been trying to enforce the social distancing discipline across its logistics network, the report says. The task may be difficult considering that some facilities like fulfillment centers are the size of a dozen football pitches.
The report said an Amazon spokesperson confirmed that employees who "intentionally violate" social distancing rules would be given two warnings and on the second documented offense, "termination could occur."
The official said there had been some instances of the employees willfully violating the guidelines. "We are taking intense measures to ensure the health and safety of employees across our sites who are performing an essential role for their communities during this crisis."
Amazon's retail operations head Dave Clark said in a blog post that the company would use its "top machine learning technologists" and internal camera systems to improve social distancing in its facilities. Three Amazon warehouse workers told CNBC on the condition of anonymity that the site leadership told them the facilities would identify individuals who violate the rules and confirm it by reviewing camera footage. The workers also expressed concerns that the policy could be unfairly applied to floor associates.Meanwhile, Amazon has reached 80% of its nationwide hiring goal, according to Houston Business Journal although a Reuters report said the e-commerce retailer's annual Prime Day usually held in mid-July may be delayed.
Amazon announced in mid-March it would add an additional 100,000 workers in the United States - including 5,900 in Texas - and raise wages by $2 per hour. The company said it needed tens of thousands of part- and full-time delivery and fulfilment center employees to meet a huge backlog of "unprecedented" customer orders for this time of year due to social distancing measures.
So far, the company has hired 80,000 new employees nationwide, including 4,600 in Texas, according to an April 6 statement from a local spokesperson.
Amazon sources told Reuters the likely delay in Prime Day shopping event until at least August could cost the company $100 million or more. Citing Amazon's internal notes, the news agency said the company might push back the shopping event and might have to sell up to 5 million extra technology devices at a discount as a result, taking a $100 million to $300 million hit.