In an aerial view, Amazon supply vehicles sit parked at an Amazon distribution heart in Richmond, California, on July 16, 2024.
Justin Sullivan | Getty Photographs
Amazon is bumping its common nationwide pay for contracted supply drivers to roughly $22 an hour, up from $20.50 an hour, the corporate mentioned Thursday.
The wage enhance is a part of Amazon’s $2.1 billion funding this 12 months into its supply service companion program, that are the legions of contracted companies that deal with last-mile supply of packages from the corporate’s warehouses to customers’ doorsteps.
The corporate’s announcement comes because it faces a renewed unionization effort amongst its contracted supply staff.
Beryl Tomay, Amazon’s vp of transportation, wrote in a weblog put up that many DSPs are “already paying well above” $22 an hour. The elevated charges will proceed to assist DSPs “in their efforts to recruit and retain high-performing teams.”
Amazon introduced the pay bump on the similar time that it’s internet hosting an annual, closed-door convention for these supply contractors, known as Ignite Stay, in Las Vegas. The corporate made an analogous announcement ultimately 12 months’s occasion. Amazon has mentioned it has added greater than 3,500 DSPs to this system because it launched in 2018.
The Teamsters Union has led a number of strikes at Amazon supply amenities prior to now 12 months, and it has made organizing Amazon workers a key focus after launching a division devoted to the net retail big in 2021.
The Nationwide Labor Relations Board has additionally been scrutinizing the corporate’s relationship with its contracted supply workforce. Since August, the federal labor company has issued two determinations discovering that Amazon needs to be deemed a “joint employer” of workers at two subcontracted supply corporations. The NLRB’s willpower might compel Amazon to cut price with workers searching for to unionize.
Amazon has fought to keep away from being designated as a joint employer of its contracted supply drivers, arguing that the employees are employed by third-party companies. Lawmakers and labor teams have disputed the corporate’s characterization, saying drivers put on Amazon-branded uniforms, drive Amazon-branded vans and have their schedules and efficiency expectations set by Amazon.
The corporate has beforehand mentioned it disagrees with the NLRB’s findings.
