Current:Home > ContactAmazon boosts pay for subcontracted delivery drivers amid union pressure -Visionary Growth Labs
Amazon boosts pay for subcontracted delivery drivers amid union pressure
View
Date:2025-04-18 15:48:40
Amazon is giving another pay boost to its subcontracted delivery drivers in the U.S. amid growing union pressure.
Drivers who work with Amazon’s Delivery Service Partners, or DSPs, will earn an average of nearly $22 per hour, a 7% bump from the previous average of $20.50, the company said Thursday.
The increase in wages is part of a new $2.1 billion investment the online retailer is making in the delivery program. Amazon doesn’t directly employ drivers but relies on thousands of third-party businesses that deliver millions of customer packages every day.
The company also gave a pay bump to U.S. drivers last year. Last week, it also said it would increase wages for front-line workers in the United Kingdom by 9.8% or more.
Amazon said the DSP program has created 390,000 driving jobs since 2018 and its total investments of $12 billion since then will help with safety programs and provide incentives for participating businesses.
U.S. labor regulators are putting more scrutiny on Amazon’s business model, which has put a layer of separation between the company and the workers who drive its ubiquitous gray-blue vans.
The Teamsters and other labor groups have argued that Amazon exercises great control over the subcontracted workforce, including by determining their routes, setting delivery targets and monitoring their performances. They say the company should be classified as a joint employer under the eyes of the law, which Amazon has resisted.
However, labor regulators are increasingly siding against the company.
Last week, a National Labor Board prosecutor in Atlanta determined Amazon should be held jointly liable for allegedly making threats and other unlawful statements to DSP drivers seeking to unionize in the city. Meanwhile, NLRB prosecutors in Los Angeles determined last month that Amazon was a joint employer of subcontracted drivers who delivered packages for the company in California.
If a settlement is not reached in those cases, the agency could choose to bring a complaint against Amazon, which would be litigated within the NLRB’s administrative law system. Amazon has the option to appeal a judge’s order to the agency’s board and eventually, to a federal court.
veryGood! (55)
Related
- Pressure on a veteran and senator shows what’s next for those who oppose Trump
- Federal Money Begins Flowing to Lake Erie for Projects With an Eye on Future Climate Impacts
- Emergency Room Visits and 911 Calls for Heat Illness Spike During Texas Heat Wave
- Rainfall Extremes Increasingly Threaten Mountain Regions and Areas Downstream From Them
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- TikToker AJ Clementine Undergoes Vocal Feminization Surgery
- All the Signs Prince George Is Taking This Future-King Business Seriously
- South Korea Emerges As Key Partner for America’s Energy Transition
- This was the average Social Security benefit in 2004, and here's what it is now
- This Summer’s Heatwaves Would Have Been ‘Almost Impossible’ Without Human-Caused Warming, a New Analysis Shows
Ranking
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- Shop the Nordstrom Anniversary Sale 2023 for the Best Home Deals: Dyson, Barefoot Dreams & More
- June Extremes Suggest Parts of the Climate System Are Reaching Tipping Points
- In the Pacific, Some Coral Survived the Last El Nino, Thanks to Ocean Currents
- Meta releases AI model to enhance Metaverse experience
- South Korea Emerges As Key Partner for America’s Energy Transition
- As Youngkin Tries to Pull Virginia Out of RGGI, Experts Warn of Looming Consequences for Low-Income Residents and Threatened Communities
- You'll Buzz Over Samuel L. Jackson's Gift to Scarlett Johansson and Ryan Reynolds for Their 2008 Wedding
Recommendation
Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
Indulge in Self-Care With a 47% Off Deal on the Best Kopari Beauty Products
Q&A: The Truth About Those Plastic Recycling Labels
How the U.S. Women's National Soccer Team Captured Our Hearts
Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
YouTuber Annabelle Ham’s Cause of Death Revealed
Tiger Woods’ Ex-Girlfriend Erica Herman Drops $30 Million Lawsuit Against His Trust
Bachelor Nation's Raven Gates and Adam Gottschalk Welcome Baby No. 2