Amazon.com Inc (NASDAQ:AMZN) is ramping up investment in delivery drivers, committing $2 billion to its delivery services program this year.
This move follows union organizing efforts and will likely raise the average national pay for Amazon drivers to nearly $22 per hour, a 7% increase from last year.
The investment will also bring other benefits, including technology upgrades for drivers, the Wall Street Journal reports.
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The pay increase brings the average driver wage up from $20.50 in 2022, with the minimum pay for Amazon drivers now ranging from $19.50 to $25.25 per hour, depending on location.
Amazon does not directly employ drivers but hires local delivery businesses, called Delivery Service Partners, which determine their salaries within Amazon's guidelines.
Amazon's increased investment in its delivery drivers follows union activity and regulatory scrutiny of its labor practices.
Amazon is also introducing a new app allowing drivers to access their accrued wages more efficiently, providing more flexibility between paydays.
Earlier in 2024, the National Labor Relations Board (NLRB) ruled that Amazon is a "joint employer" of some contracted drivers, which could force Amazon to negotiate with unionizing employees. Earlier in 2023, Amazon spent over $3 million on consultants to deter unionization within its delivery network.
Price Action: AMZN stock is up by 0.67% to $188.26 premarket at the last check on Friday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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