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. (NASDAQ: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.