Amazon adds new driver benefits, hikes pay amid union challenge
georgeclerk

Amazon (NASDAQ:AMZN) added its name to the growing list of companies adding benefits and compensation to placate employees after a recent formal challenge from the Teamsters Union.
Firstly, the company announced a new academic program, entitled Next Mile, for delivery drivers that will provide up to $5,250 per year to be put toward academic programs, including bachelor's and associate degrees, certifications, and high school completion. The Seattle-based company also indicated it has added a 401(k) plan for delivery service partners (DSPs) and âis providing DSPs an estimated $60M over the first year to help these small business owners match employee contributions.â
"Through the DSP program, small businesses around the world have generated over $26 billion in revenue for their companies since launching four years ago," said Parisa Sadrzadeh, vice president of Amazon's Worldwide Delivery Service Partner Program. "We couldnât have done that without DSPs and their incredible teams. We will continue to innovate with them and use our economies of scale and resources to help them provide best-in-class offerings to their employees."
The 401(k) program specifically was cited as a benefit clamored for by delivery partners. Per Amazon, more than 70% of DSP drivers polled called retirement savings a âcritical benefitâ.
In addition to the new benefits, Amazon (AMZN) announced rate increases to allow DSPs âto offer competitive pay to their drivers.â In total, the new benefits and rate increases are expected to amount to a $450M investment over the next year.
Read more on similar initiatives put forth by Starbucks amid its own union battles.