Amazon Ups Pay for Delivery Drivers Facing Union Pressure

Amazon has announced another pay increase for its subcontracted delivery drivers in the U.S. amid rising union pressures. Drivers working with Amazon's Delivery Service Partners (DSPs) will now earn an average of nearly $22 per hour, up from the previous average of $20.50. This 7% wage hike is part of a new $2.1 billion investment in the delivery program.

Investment in Delivery Program

The online retailer does not directly employ these drivers but relies on thousands of third-party businesses to deliver millions of packages daily. Last year, Amazon also increased wages for U.S. drivers. Recently, it announced a 9.8% or more wage increase for front-line workers in the United Kingdom.

Amazon stated that since 2018, the DSP program has created 390,000 driving jobs. The total investment of $12 billion since then aims to enhance safety programs and provide incentives for participating businesses.

Labour Scrutiny and Legal Challenges

U.S. labour regulators are scrutinising Amazon's business model, which separates the company from the workers who drive its vans. Labour groups like the Teamsters argue that Amazon controls the subcontracted workforce by setting routes, delivery targets, and monitoring performance. They believe Amazon should be classified as a joint employer under the law, a stance Amazon opposes.

Recently, a National Labour Board prosecutor in Atlanta ruled that Amazon should be held jointly liable for allegedly making threats and other unlawful statements to DSP drivers seeking to unionise in the city. Similarly, NLRB prosecutors in Los Angeles determined last month that Amazon was a joint employer of subcontracted drivers delivering packages in California.

Potential Legal Actions

If settlements are not reached in these cases, the agency might bring a complaint against Amazon, which would be litigated within the NLRB's administrative law system. Amazon can appeal a judge's order to the agency's board and eventually to a federal court.

Amazon's recent wage increases and investments highlight its efforts to address growing union pressures and regulatory scrutiny while continuing to rely on third-party businesses for its delivery operations.