Bear Down Logistics is firing 400 drivers and closing its branches in five US states. Delivery Force says goodbye to over 270 employees and RCX Logistics – to 600 people. All because Amazon terminated their contracts, bloomberg.com reports.
In total, nearly 1,300 drivers are expected to lose their jobs in the United States due to the termination of the contract with Amazon (on its initiative), according to the American portal. Amazon explains that its existing partners failed to meet the standards it required.
We are responsible to our customers and the communities in which we operate to ensure that our subcontractors adhere to our high standards of safety and working conditions,” comments the giant in an email sent to bloomberg.com.
Amazon adds that sometimes there is a situation when it has to stop working with a partner, but in such cases, the company tries to help the employees to find new jobs.
Efficient operators were to gain
The American portal reveals that Amazon pays small subcontractors much lower rates than in the case of larger companies. As a major player, however, it has a stronger negotiating position, which is difficult to beat.
One driver working for Bear Down in Michigan said he earned about $15 an hour delivering Amazon packages, while UPS paid seasonal drivers doing the same work in that area about $20 an hour,” reports the website.
When in June 2018 Amazon announced plans to build its own fleet (which, according to cnbc.com calculations, already delivers 50% of its own shipments in the United States), it strongly encouraged small operators to cooperate. In September, we wrote that thriving companies could count on an annual profit ranging from $75,000 to even $300,000. At least that’s what the giant itself estimated.
Carriers were to lease at least 20 vehicles and employ 100 drivers minimum, then make their last-mile deliveries under the Amazon logo. There was a lot of interest. The media reported that nearly 10,000 companies were interested in the offer.