In an aerial view, Amazon supply vans are parked at an Amazon distribution heart in Richmond, California, on July 16, 2024.
Justin Sullivan | Getty Pictures
Amazon raises the common nationwide wage for contracted supply drivers to about $22 per hour, up from $20.50 per hour, the corporate mentioned Thursday.
The pay enhance is a part of Amazon’s $2.1 billion funding this yr in its supply service associate program, which consists of the legions of contracted corporations that deal with last-mile supply of packages from the corporate’s warehouses to buyers’ doorways. caring for the general public.
The corporate’s announcement comes because it faces renewed unionization efforts amongst its contracted supply staff.
Beryl Tomay, vp of transportation at Amazon, wrote in a weblog put up that many DSPs are already paying “effectively above” $22 per hour. The upper charges will proceed to assist DSPs “of their efforts to recruit and retain high-performing groups.”
Amazon introduced the pay enhance on the similar time it’s internet hosting an annual closed-door convention for these supply staff, referred to as Ignite Dwell, in Las Vegas. The corporate made the same announcement final yr. Amazon has mentioned it has added greater than 3,500 DSPs to this system since its launch in 2018.
The Teamsters Union has led a number of strikes at Amazon supply services over the previous yr and has made organizing Amazon staff a serious focus after launching a division devoted to the web retail large in 2021.
The Nationwide Labor Relations Board additionally scrutinized the corporate’s relationship with its contracted supply personnel. Since August, the Federal Labor Division has issued two determinations that Amazon must be thought of a “joint employer” of workers at two subcontractors. The NLRB’s willpower may power Amazon to discount with staff who need to unionize.
Amazon has fought to keep away from being designated as a co-employer of its contracted supply drivers, arguing that the employees are employed by third-party corporations. Lawmakers and labor teams have challenged the corporate’s characterization, saying drivers put on Amazon-branded uniforms, drive Amazon-branded supply vans and that their schedules and efficiency expectations are set by Amazon.
The corporate has beforehand mentioned it disagrees with the NLRB’s findings.
