Amazon is raising its average national pay for contracted delivery drivers to approximately $22 an hour, up from $20.50, the company announced on Thursday.
This wage hike is part of a broader $2.1 billion investment this year into Amazon’s delivery service partner (DSP) program, which consists of numerous contracted firms responsible for delivering packages from Amazon’s warehouses to customers’ doorsteps.
The pay increase comes at a time when Amazon faces a renewed push for unionization among its contracted delivery workforce.
Beryl Tomay, Amazon’s vice president of transportation, explained in a blog post that many delivery service partners already offer wages above $22 an hour.
The increased rates will further assist DSPs “in their efforts to recruit and retain high-performing teams,” she said.
Amazon revealed the wage boost during its annual, closed-door Ignite Live conference for delivery contractors in Las Vegas, where a similar announcement was made last year.
Since the program’s inception in 2018, Amazon says it has added over 3,500 DSPs.
In the past year, the Teamsters Union has organized several strikes at Amazon delivery facilities and has made the company a priority in its organizing efforts. The union launched a division specifically focused on Amazon in 2021.
The National Labor Relations Board (NLRB) has also been scrutinizing Amazon’s relationship with its contracted delivery workers.
Since August, the NLRB has issued two rulings that identify Amazon as a “joint employer” of workers at two subcontracted delivery firms. If this classification holds, Amazon could be required to negotiate with employees seeking to unionize.
Amazon has resisted the “joint employer” designation, asserting that contracted drivers are employed by third-party companies.
However, lawmakers and labor groups have challenged this position, pointing out that drivers wear Amazon-branded uniforms, drive Amazon-branded vehicles, and have their schedules and performance monitored by Amazon.
