Sept 12 (Reuters) - Amazon.com ( AMZN ) said on Thursday
it will increase the compensation to its Delivery Service
Partners (DSP) through a $660 million investment over the next
year.
Amazon's ( AMZN ) package delivery is done mostly by DSPs, small
businesses that employ drivers and set their salaries.
As a result of the investment, Amazon ( AMZN ) expects the
national average earnings for drivers to increase by at least
another $1.50 to nearly $22 per hour, depending on the location,
which represents a 7% increase over last year.
The funding is part of an incremental investment of over
$2.1 billion in the DSP program, bringing its total investment
to $12.3 billion over the last six years.
Amazon ( AMZN ) will also launch an app for the DSP's drivers,
where they will be able to access up to 50% of accrued wages
before their payday.
The ecommerce giant said it will use AI to identify risk
characteristics for 200 million roads and provide 18 million
safety cues for drivers by the end of this year.
Amazon's ( AMZN ) investments come days after a National Labor
Relations Board prosecutor concluded that the company should be
held jointly liable with a contractor for allegedly using
unlawful tactics to discourage delivery drivers in Atlanta from
unionizing.
Another regional director from the NLRB in Los Angeles
concluded that Amazon ( AMZN ) should be considered a so-called "joint
employer" of a separate contractor's employees and thus be
obliged to negotiate with unions.
The company, however, has said in the past that it does
not exert enough control over contractors' drivers to be
considered their joint employer.