“I think it would have an enormous effect on Amazon,” he said. O’Brien called the contract “just the beginning” in a press release and said Amazon had “better pay attention because there’s more to come.”Ī UPS strike could help pave the way for further organization efforts at Amazon, accordion to Robert Anthony Bruno, a professor at the University of Illinois’ School of Labor and Employment Relations. It was the first union contract to cover Amazon delivery network workers. Earlier this year, 84 Amazon drivers and dispatchers working with Battle-Tested Strategies, an Amazon delivery service partner, organized with Teamsters Local 396 in Los Angeles. The division already has seen some success. Last year, the Teamsters launched an Amazon Divison dedicated to organizing Amazon employees, with General President Sean O’Brien noting that the division offers a network of resources to all Amazon workers ‒ including those "behind the wheel of any truck." What would a strike mean for unionization efforts at Amazon?Īmid the ramp-up to a possible UPS strike, Teamsters leaders have been clear that they have their eyes on Amazon. That means "there's a good chance that they could be using UPS."Īmazon spokesperson Kelly said the company has been working to streamline its network and expects record Prime delivery speeds this year. Purchasing from third-party sellers on Amazon also could take more time because some handle their own shipping, Miller said. "So your Amazon shoppers in rural areas, and just in general areas that have less customer density, they're the ones that are most likely to be affected." "Amazon's delivery service providers, the Amazon vans, those are more for denser urban areas where you have a lot more package density, so deliveries per square mile," Miller said. That could affect delivery times for Amazon shoppers in rural areas, who are more likely to have their packages delivered via UPS or the Postal Service. “That said, they rely pretty heavily on a combination of the USPS and UPS.” While UPS’s 160,000 nonunion employees are expected to work during a strike, a work stoppage from its 340,000 Teamster members means the company would be able to handle just a fraction of the nearly 25 million packages it typically delivers daily. Competitors like FedEx and the postal service could also see delivery times slow if the carriers get inundated with additional demand from UPS customers.Īmazon has “a lot more ability to move orders in and around their network,” said Gregg Zegras, executive vice president of Pitney Bowes. About 28% was shipped by the United States Postal Service and 8% by UPS, according to Pitney Bowes. That leaves 40% – or about 3.2 billion packages – shipped by other carriers. Of the 8 billion parcels shipped by Amazon last year, 60% were sent through Amazon’s logistics network, according to shipping technology company Pitney Bowes. “Even with Amazon, even for folks who get the Amazon deliveries from the post office, there could be some delays.” How will the UPS strike affect Amazon shoppers? "Just in general, in the e-commerce space, people need to be expecting more delivery delays," said Jason Miller, interim chairperson for the department of supply chain management at Michigan State University. Others say a strike could influence union organization among Amazon delivery drivers. Though Amazon is expected to fare better than smaller retailers if UPS Teamsters strike, logistics experts warn that some Amazon deliveries may take longer in rural areas that rely more heavily on UPS. Amazon does deliver a portion of its packages through UPS, but its use of the company has been waning. A looming UPS strike could be bad news for online shoppers and small businesses.īut what about Amazon, the online retail giant that ships thousands of packages each week?ĭespite the threat of a UPS work stoppage, Amazon spokesperson Steve Kelly said the company does not expect a significant impact on customer deliveries because most of the company’s orders are processed through its own network.
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