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Amazon Emphasizes On Delivery Drivers' Pay After Workers' Safety

Benzinga · 09/14/2022 07:40
  • Amazon.com Inc (NASDAQ:AMZNlooks to boost pay and benefits for its delivery partners as it gears up for the peak holiday season amid a persistently tight labor market.
  • Amazon will invest $450 million to fund wage increases and other benefits for delivery drivers employed by members of its Delivery Service Partners network. 
  • It started the program in 2018. Amazon has invested over $7 billion in its Delivery Service Partners network since 2018.
  • Other benefits of the new initiative include up to $5,250 a year for drivers to pay for educational programs and financial support for a 401(k) investment plan.
  • Amazon started hiring for the all-important holiday season while restructuring the logistics network to beat the post-pandemic demand correction.
  • Amazon also rolled out similar benefits for its warehouse workers as it expanded the logistics network, the backbone of its vast e-commerce operation, as unionization gained momentum.
  • Amazon strategized to improve warehouse safety and pay concerns after facing flak for the same.
  • Earlier reports indicated Amazon faced a significant crisis of workers in its warehouses as it ran out of people to hire. The report suggested that alongside higher wages, further automation could be one way to offset that crisis.
  • Price Action: AMZN shares traded higher by 0.22% at $127.10 premarket on the last check Wednesday.
  • Photo via Wikimedia Commons