Amazon Irks Regulators For Prioritizing Speed Over Safety At Its Warehouses

The U.S. Department of Labor's Occupational Safety and Health Administration called out Amazon.com, Inc. AMZN for compromising worker safety and issued hazard alert letters after inspections at three warehouse facilities in Deltona, Florida; Waukegan, Illinois; and New Windsor, New York.

• The U.S. Attorney's Office for the Southern District of New York asked the agency to open inspections at Amazon warehouses. 

• The regulator also called out Amazon for exposing workers at the Florida warehouse to struck-by hazards. Similar investigations were ongoing at three Amazon locations in Aurora, Colorado; Nampa, Idaho; and Castleton, New York.

Also Read: Uber, Amazon And Other Gig Employers Face Flak For Inadequate Work Infrastructure For Employees In India

• OSHA investigators found Amazon warehouse workers at high risk for lower back injuries and other musculoskeletal disorders for prioritizing speed over safety. 

• OSHA also reviewed on-site injury logs required by OSHA and discovered Amazon warehouse workers experienced high rates of musculoskeletal disorders.

• Amazon faced a total penalty of $60,269 for these violations.

• In December 2022, OSHA noted Amazon for 14 recordkeeping violations as part of the same investigation. 

• Amazon has on-site clinics called Amcare for employees who may suffer injuries, but OSHA found them inadequate.

• Amazon denied the allegations, TechCrunch reported.

• According to the Washington State Department of Labor, the strains and sprains per 10,000 employees were four times higher at Amazon than at other warehouses. 

• A 2021 study found that Amazon warehouse workers in the U.S. suffered severe injuries at twice the rate of rival companies. 

• In 2021, there were 6.8 severe injuries for every 100 Amazon warehouse workers, while all other employers in the warehouse industry suffered 3.3 severe injuries per 100 workers.

• Amazon reported 38,300 total injuries at its U.S. facilities in 2021, up 20% year-on-year.

• The warehouse safety and pay concerns triggered unionization attempts at various Amazon warehouses, most of which the company succeeded in crushing.

• Amazon held $59 billion in cash and equivalents as of Sept. 30.

AMZN Price Action: AMZN shares are dow 2.51% at $93.07 Thursday morning at publication.