Amazon Delivery: Raising Pay for Contracted Drivers

Amazon announced a pay increase for its contracted delivery drivers, bumping the average national pay to roughly $22 an hour, up from $20.50 an hour. This is part of Amazon's $2.1 billion investment this year into its delivery service partner program.

• The delivery service partners are contracted firms that handle last-mile delivery of packages from Amazon's warehouses to customers' doorsteps.
• Amazon's vice president of transportation stated that many delivery service partners are already paying above $22 an hour, and the increased rates will support their efforts to recruit and retain high-performing teams.
• The announcement was made during Amazon's annual conference for delivery contractors, called Ignite Live, in Las Vegas.

Unionization Efforts and Labor Scrutiny

The pay increase comes amidst a renewed unionization effort among Amazon's contracted delivery workers and scrutiny from the National Labor Relations Board (NLRB).

• The Teamsters Union has led several strikes at Amazon delivery facilities in the past year and has made organizing Amazon employees a key focus.
• The NLRB has issued determinations finding that Amazon should be deemed a "joint employer" of employees at two subcontracted delivery companies, which could compel Amazon to bargain with employees seeking to unionize.
• Amazon has fought to avoid being designated as a joint employer, arguing that the workers are employed by third-party firms.

Delivery Drivers' Employment Status

The NLRB's determination regarding Amazon's joint employer status has raised questions about the employment status of contracted delivery drivers.

• Lawmakers and labor groups argue that drivers wear Amazon-branded uniforms, drive Amazon-branded vans, and have their schedules and performance expectations set by Amazon.
• Amazon has previously disagreed with the NLRB's findings, maintaining that the workers are employed by third-party firms.

Amazon's Delivery Service Partner Program

Amazon's delivery service partner program has grown significantly since its launch in 2018.

• Amazon has added more than 3,500 delivery service partners to the program.
• The program aims to support the last-mile delivery of packages from Amazon's warehouses to customers' doorsteps.

Impact on Amazon's Delivery Operations

The pay increase and the ongoing labor scrutiny could have implications for Amazon's delivery operations.

• Higher pay rates may help delivery service partners attract and retain drivers, improving the quality of Amazon's last-mile delivery services.
• If Amazon is deemed a joint employer of contracted delivery drivers, it may be required to bargain with unionized workers, potentially impacting labor costs and operations.

Amazon's Response to Labor Issues

Amazon has taken steps to address labor concerns and improve working conditions for delivery drivers.

• In addition to the pay increase, Amazon has invested in new driver programs and initiatives to support delivery service partners.
• However, the company continues to face scrutiny from labor groups and regulatory agencies regarding its treatment of contracted workers.