In today's business landscape, outsourcing is often hailed as a strategic move to enhance efficiency and reduce costs. For many companies, this involves contracting third-party firms to handle operations such as transportation and logistics. While outsourcing offers attractive financial advantages, it also brings significant and often overlooked safety risks. Companies outsourcing roles to external contractors without proper oversight risk potentially devastating consequences. The tragic death of Iliana Velez, caused by a contracted Amazon driver, is a prime example of the real danger this practice poses.
On January 3, 2022, a collision on a Texas highway claimed the life of 19-year-old Iliana Velez. She was struck by a box truck driven by Jordan Sannicola, a contractor on his way to pick up an Amazon load. Sannicola, who had a history of serious traffic violations, including a suspended driver's license and outstanding felony warrants, was employed by Take Flight with B, a North Carolina-based motor carrier contracted by Amazon. Despite failing a background check that Amazon required for drivers directly delivering packages, Sannicola was hired by a third-party contractor to transport Amazon freight between facilities.
The case of Iliana Velez's death highlights the potential dangers that arise when companies outsource without taking the proper precautions. By entrusting contractors like Take Flight with B to handle its logistics, Amazon lost control over critical aspects, particularly in the vetting and monitoring of drivers. In this case, Sannicola's unsafe driving behaviors—including numerous speeding violations—were known to Amazon. Yet, despite this knowledge, the company failed to take action. This oversight not only led to a tragic loss of life but also raised broader questions about the effectiveness of the systems companies have in place to monitor their contractors' records.
A CBS News investigation revealed that Amazon's contractors—particularly those in the company's "middle-mile" delivery network—had significantly higher safety violation rates than other carriers. Violations such as speeding and distracted driving were found to be nearly twice as frequent among Amazon contractors as those working for different companies. This data calls into question whether the practice of outsourcing logistics functions is genuinely sustainable, particularly when a lack of direct oversight so clearly compromises safety.¹
Outsourcing transportation and logistics might seem like an appealing solution to cut costs, but it poses significant concerns. One of the biggest concerns is the lack of control over safety practices. When businesses hand over safety responsibilities to contractors, they often lose their ability to oversee the day-to-day operations that directly affect public safety. Here are some of the key risks that come with outsourcing safety tasks:
The main risk of outsourcing safety is that companies lose direct control over the standards and practices that keep operations safe. Contractors may not follow the same strict safety protocols that an in-house team would. As a result, this can lead to unsafe driving, poor vehicle maintenance, and a lack of proper oversight. When safety measures are overlooked, accidents increase, putting employees and the public in danger.
Thorough background checks are a cornerstone of maintaining workplace safety. When businesses outsource safety, they often rely on third-party contractors to perform background checks and ensure that their employees meet the necessary safety qualifications. However, as seen in the case of Jordan Sannicola, contractors may fail to properly vet drivers, hiring individuals with criminal records or histories of unsafe driving. Amazon's decision to allow Take Flight with B to hire Sannicola, despite his red flags, illustrates how outsourcing safety can leave gaps in the hiring process and expose companies to significant risks.²
Companies must ensure their contractors stay on top of safety regulations, including monitoring how they drive, checking vehicle conditions, and ensuring safety rules are followed. When a company doesn't pay enough attention, problems can arise. For example, Amazon ignored several warnings about speeding violations from Sannicola, showing how easily things can become dangerous when safety isn't closely observed. Not keeping track of these issues endangers workers and the public alike.³
Outsourcing safety can bring a company more than just operational risks—it can also open the door to significant legal and reputational damage. Even when independent contractors cause accidents, the company may still be held accountable. When companies don't ensure their contractors follow safety rules, they could face serious financial consequences—even if the contractor is at fault for the accident.⁴ The Velez family brought a lawsuit against Amazon, arguing that the company's inadequate oversight of its contractors played a role in their daughter's death. While contractors may bear direct responsibility for incidents, companies are often held accountable if they fail to maintain or enforce adequate safety measures.⁴ Even if they won the case, the harm to Amazon's reputation would be lasting. A lawsuit like the one from the Velez family can seriously hurt a brand, with the damage to consumer trust far outweighing any savings from outsourcing safety.⁵
If companies continue focusing on cutting costs without addressing the safety risks posed by third-party contractors, they are neglecting their duty to the public. Outsourcing logistics can improve operational efficiencies and reduce costs, but safety should never be compromised.
Amazon's reliance on Take Flight with B highlights how businesses can miss the mark when they don't set up proper safety protocols for their contractors. When companies hand over safety responsibilities to third parties without enough oversight, they put their employees, contractors, and the public at risk.⁶
If outsourcing is absolutely necessary, some steps can be taken to avoid compromising safety. First, clearly communicated safety guidelines must be set for contractors. Companies must also closely monitor safety data and performance over time. Regular check-ins and audits help identify potential problems early on. Keeping an open line of communication is vital to ensure contractors know what's expected of them regarding safety rules. In the end, safety has to come first—no amount of savings is worth putting people at risk of serious injury or death. The tragic situation Amazon found itself in due to safety issues shows how serious these risks can be. Businesses must prioritize streamlining their contractors' safety practices because protecting lives is far more important than cutting costs.⁷
Outsourcing safety carries a serious risk when businesses don't stay on top of safety practices. The loss of Iliana Velez is a painful reminder of what can happen when safety is not adequately managed. Companies that use contractors must take responsibility for ensuring safety standards are followed. Cutting corners on safety to save money can end up costing far more in the long run, both legally and in terms of reputation. Making safety the top priority helps businesses protect their employees, the public, and their reputation.
If you are in need of a personal injury attorney in North Texas, please contact the team at McCraw Law Group today. We are ready to help you in a broad range of serious accident and injury legal issues, and offer multiple ways to reach us.
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If you are in need of a personal injury attorney in North Texas, please contact the team at McCraw Law Group today. We are ready to help you in a broad range of serious accident and injury legal issues, and offer multiple ways to reach us.