A bipartisan group of 29 senators wrote another letter to Amazon CEO Andy Jassy, Thursday, June 6, demanding answers on how the company treats its delivery drivers. Amazon does not technically employ many drivers seen in neighborhoods across the country. Those drivers work for Delivery Service Partners (DSPs) who run their own independent business delivering for Amazon.
The original letter, sent in January, stated Amazon reportedly exercises near-total control over the wages and working conditions of its delivery drivers while avoiding legal liability through a network of delivery service partners. The DSPs are independent businesses that contract with Amazon.
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“The structure of Amazon’s DSP program may help Amazon escape regulatory scrutiny,” the senators wrote. “The DSP program is a highly fragmented, captive business model, characterized by its use of leased vans and other vehicles under 10,000 pounds. Because these vehicles are not subject to certain commercial vehicle regulations, it is nearly impossible to conduct oversight or regulatory efforts to analyze and understand the full universe of DSP operations.”
The senators asked a number of questions in the January letter including:
- What is Amazon management’s justification for insisting it is not obligated to bargain with union representatives of DSP employees?
- What is the justification for Amazon’s requirement that several DSPs sign non-poaching agreements?
- If DSPs are indeed independent entities, are DSPs permitted to work with Amazon’s direct package delivery competitors?
The company responded by stating Amazon is not the employer for DSP employees, DSPs are responsible for hiring and managing their own employees.
Amazon also said it does not require DSPs to sign “non-poaching agreements,” and Amazon’s contracts with DSPs expressly state that DSPs are free to provide services to customers other than Amazon. The company noted that many DSPs do.
Thursday’s letter stated those answers are not good enough.
Senators asked Jassy more specific questions about the same topics. The questions aim to get a better sense of how involved the company is in managing the operations and employees of the DSPs which are, according to the company, independent.
The group said the answers to these questions will help dictate the next steps taken by the Senate HELP Committee, which pro-labor, pro-union Sen. Bernie Sanders, I-Vt., chairs.
[RAY BOGAN]
29 bipartisan Senators wrote another letter to Amazon CEO Andy Jassy, Thursday, demanding answers about how the company treats its delivery drivers.
Many drivers seen in neighborhoods across the country are not technically employed by Amazon. They work for what Amazon calls Delivery Service Partners who run their own independent business delivering for Amazon.
The original letter, sent in January, stated Amazon reportedly exercises near-total control over the wages and working conditions of its delivery drivers while avoiding legal liability through a network of delivery service partners – supposedly independent businesses that contract with Amazon.
The Senators also wrote, “The structure of Amazon’s DSP program may help Amazon escape regulatory scrutiny. The DSP program is a highly fragmented, captive business model, characterized by its use of leased vans and other vehicles under 10,000 pounds. Because these vehicles are not subject to certain commercial vehicle regulations, it is nearly impossible to conduct oversight or regulatory efforts to analyze and understand the full universe of DSP operations.”
The Senators asked a number of questions in the January letter including:
What is Amazon management’s justification for insisting it is not obligated to bargain with union representatives of DSP employees?
What is the justification for Amazon’s requirement that several DSPs sign non-poaching agreements?
If DSPs are indeed independent entities, are DSPs permitted to work with Amazon’s direct package delivery competitors?
The company responded by stating Amazon is not the employer for DSP employees, DSPs are responsible for hiring and managing their own employees, Amazon does not require DSPs to sign “non-poaching agreements”, and Amazon’s contracts with DSPs expressly state that DSPs are free to provide services to customers other than Amazon, and many do.
Thursday’s letter stated those answers aren’t good enough. So Senators are asking CEO Andy Jassy more specific questions about the same topics. The questions try to get a better sense of how involved the company is in managing the operations and employees of the DSPs which are, according to the company, independent.
The group says the answers to these questions will help dictate the next steps taken by the Senate Help committee- chaired by the pro-labor, pro-union Sen. Bernie Sanders, I-VT.
