Amazon Hikes Pay for Delivery Drivers Amid Union Pressure

Amazon is increasing wages for its subcontracted delivery drivers in the U.S. to nearly $22 per hour, a 7% rise. This increment is part of a $2.1 billion investment in the delivery program. Amid growing scrutiny and pressure from labor unions, U.S. labor regulators are examining Amazon's business model and its control over subcontracted workers.

Amazon announced another pay boost for its subcontracted delivery drivers in the United States, increasing their average hourly wage to nearly $22, up by 7% from the previous rate of $20.50. This raise forms part of the online retail giant's broader $2.1 billion investment in its delivery services program.

The latest wage hike comes after similar increments last year in the U.S. and recently for frontline workers in the United Kingdom. Since the inception of its Delivery Service Partner (DSP) program in 2018, Amazon claims to have created 390,000 driving jobs and invested $12 billion in safety and incentives for participating businesses.

However, the company faces growing scrutiny from U.S. labor regulators regarding its classification of DSP drivers. Labor groups argue that Amazon exercises significant control over these subcontracted workers, suggesting the company should be classified as a joint employer, a stance that regulators are increasingly supporting.

(With inputs from agencies.)