NEW YORK (AP) — Amazon says it’s boosting pay for contracted drivers who ship tens of millions of packages to clients daily.
The corporate introduced at a convention for supply companies this week that it’ll make investments $440 million over the following 12 months to extend pay charges for drivers. It didn’t disclose how a lot the bump will probably be, however stated it expects U.S. drivers to earn a median of $20.50 per hour.
Lots of Amazon’s supply service companions, or DSPs, already pay effectively above that. The corporate didn’t share the minimal pay for drivers throughout the nation. In keeping with its web site, some at choose stations make a minimum of $20 per hour.
The e-commerce firm launched its supply service companions program in 2018 as a part of an effort to scale back its reliance on exterior carriers equivalent to UPS and FedEx. Over the previous 5 years, Amazon says 3,500 companies have signed up for this system and created 279,000 supply jobs worldwide. The corporate provides the companies a pot of cash to cowl pay and different bills for each route they’re given, although some have complained they discovered it difficult to be worthwhile.
The announcement comes because the Worldwide Brotherhood of Teamsters is ramping up its give attention to the corporate’s supply workforce. Since June, dozens of Amazon drivers and dispatchers who work for a California-based supply agency that the Teamsters unionized in April have been picketing firm warehouses and calling for the retail large to return to the negotiating desk.
Amazon stated the pay hike will assist DSPs recruit and retain workers.
The corporate additionally stated it’ll make investments an extra $400 million to assist present little one care help and broaden instructional alternatives for workers who wish to take programs at accredited establishments. Amongst different issues, a spokesperson for the corporate stated that funding will even cowl security and coaching.