Amazon raises wages for contract delivery drivers amidst increasing union pressure.

• The average national pay for Amazon's contracted delivery drivers has increased to approximately $22 an hour from $20.50 an hour.
• Amazon's delivery-service partners will benefit from increased rates, which will aid them in recruiting and retaining high-performing teams, according to the company's blog post.
• It comes as Amazon faces a renewed unionization effort among its delivery workers.

The company announced that it is raising its average national pay for contracted delivery drivers to approximately $22 an hour, from $20.50 an hour.

Amazon's $2.1 billion investment this year into its delivery service partner program includes a wage increase for the legions of contracted firms that handle last-mile delivery of packages from the company's warehouses to shoppers' doorsteps.

The company's announcement coincides with a renewed unionization drive among its contracted delivery workers.

Beryl Tomay, Amazon's vice president of transportation, stated in a blog post that many DSPs are currently being paid more than $22 an hour. The continued increase in rates will aid DSPs in their efforts to attract and retain top-performing teams.

Since its launch in 2018, Amazon has added more than 3,500 DSPs to its program. The company made a similar announcement at last year's Ignite Live conference, which is currently taking place in Las Vegas.

In the past year, Amazon delivery facilities have been targeted by strikes led by the Teamsters union, prompting the union to prioritize organizing Amazon employees after establishing a dedicated division for the online retail giant in 2021.

The NLRB has been examining Amazon's relationship with its contracted delivery workers and has issued two determinations since August, classifying Amazon as a "joint employer" of employees at two subcontracted delivery companies. This could require Amazon to negotiate with employees seeking to unionize.

Amazon has been fighting to maintain its classification as an independent employer of its contracted delivery drivers, claiming that the workers are employed by third-party firms. However, lawmakers and labor groups have challenged this classification, arguing that drivers wear Amazon-branded uniforms, drive Amazon-branded vans, and have their schedules and performance expectations set by Amazon.

The company has previously said it disagrees with the NLRB's findings.

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