UPS Teamsters are already reeling from layoffs and building closures under Carol Tomé and “Better, Not Bigger.” Now, Amazon is escalating its attack on union package delivery jobs. On May 4, Amazon announced it is launching Amazon Supply Chain Services to compete directly with UPS for business-to-business deliveries.

Amazon already has a logistics network of 80,000 trailers and 100 planes. But until now, Amazon has used this network almost exclusively to deliver their own products. 

Now, Amazon has announced it will be opening this network to other businesses to do business-to-business deliveries – what UPS Teamsters call commercial stops. 

UPS is also refocusing its business on commercial, business-to-business stops. These deliveries are the most profitable part of UPS’s business because stops are dense, more predictable, and less expensive to service than e-commerce and other residential deliveries. 

That’s why UPS is cutting Amazon volume by more than half. Now Amazon says it will start targeting the same business-to-business market.

A Threat, Not a Surprise

This move by Amazon has long been expected – and the company’s huge resources and sweatshop model represent a real threat. 

But Amazon’s rise in the business-to-business sector won’t be automatic. The company currently has its hands full just handling its own volume. 

As reported by industry analysts at Yahoo Finance: “It's not easy to ramp up a new business from zero, especially against entrenched competitors like UPS and FedEx.” 

Amazon also has a history of press releases that over-promise on technology and new initiatives that are soon forgotten.

Amazon previously tried to become the major player in the supermarket industry (Whole Foods) and pharmacy industry. In both cases, Amazon has yet to establish itself as a major competitor to traditional supermarkets or pharmacies like CVS. 

It’s too early to tell whether Amazon will deliver on their ambitious promises to become a player in the third-party parcel delivery business. But the threat to UPS should not be dismissed.

Fighting for Our Future

UPS and Amazon are both making changes that threaten good union jobs.

Now more than ever, defending our jobs and contract at UPS and organizing the nonunion competition at Amazon are one and the same mission.