The Wall Street Journal reports that Amazon plans "to raise pay and benefits for its delivery partners, as the e-commerce giant gears up for the peak holiday season amid a persistently tight labor market.
"The company will invest $450 million to fund wage increases and other benefits for delivery drivers employed by members of its Delivery Service Partners network, it said in a release. The company started the program in 2018, encouraging entrepreneurs to start their own fleets of drivers with initial investments of as little as $10,000. Other benefits as part 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 for drivers."
Amazon says that it "has invested more than $7 billion in its Delivery Service Partners network since 2018," similar to "similar benefits for its warehouse workers as it expanded the logistics network, which is the backbone of its vast e-commerce operation, while trying to fend off union organizers who have started to make inroads in its workforce."
- KC's View:
Makes sense to me. It may be seen by some as too little, too late … but Amazon has to make moves like these to live up to its value proposition and consumer promises. To do otherwise is to put the whole enterprise at risk, I think.