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Home » Amazon to Fund Raises for Delivery Drivers Amid Tight Labor Market

Amazon to Fund Raises for Delivery Drivers Amid Tight Labor Market

AMAZON TRUCK ON HIGHWAY

Photo: iStock.com/Sundry Photography

September 15, 2022
SupplyChainBrain

Amazon is raising driver pay to help make sure it is staffed up for the holiday season, reports The Wall Street Journal. Amazon will spend $450 million to raise wages and benefits for members of its Delivery Service Partners network, a program of small businesses that drive fleets of Amazon-branded delivery vans.

The company also plans to offer drivers financial support toward educational programs and a retirement investment plan. The pay bump comes as Amazon begins hiring for the critical peak holiday shipping season and as the company reshapes its logistics network after expanding its footprint aggressively during the pandemic. 

Amazon’s pay increases for warehouse workers have helped set the bar for wages in that sector. The company is following broader trends in the driver market, where tight labor conditions have led to higher wages, bonuses and benefit packages to get workers behind the wheel.

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