Amazon delivery drivers reportedly consider future after UPS deal with Teamsters
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Some Amazon drivers are reportedly pondering their futures making deliveries for the e-commerce giant.
Their consideration of making a switch has arisen after UPS and the Teamsters union came to an agreement over the summer that will bring significant pay increases to full-time and part-time union drivers over five years, Business Insider reported Saturday. That deal got ratified in August.
The Teamsters union has about 340,000 UPS workers, either full-time or part-time, among its members.
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Social media users have used the UPS-Teamsters collective bargaining agreement and its pay-related terms as fodder for memes about the difference in UPS and Amazon Delivery Service Partner driver pay, according to the outlet.
The drivers Amazon uses are contracted through its Delivery Service Partners program. (ANGELA WEISS/AFP via Getty Images / Getty Images)
Business Insider reported that some drivers have made joking comments about moving over to UPS.
"I think it puts Amazon in this situation where they’re going to have to decide if they want to keep quality drivers or not," a delivery driver told Business insider.
Under the collective bargaining agreement with UPS, current Teamster-represented UPS workers will see their pay increase $2.75 per hour this year, FOX Business previously reported. Over the five years, the rate is expected to climb $7.50 for full-time and part-time UPS workers.
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It has other provisions related to overtime and time off, as well.
For Amazon, the delivery drivers it uses are contracted through its Delivery Service Partners program. It says on its hiring website that such drivers can expect 40 hours of work each week, full benefits, competitive pay and access to a vehicle, among other things.
A United Parcel Service driver makes a delivery along the coast of Cape Cod in Orleans, Massachusetts, on July 24, 2023. (Robert Nickelsberg/Getty Images / Getty Images)
Two drivers that spoke to Business Insider pegged their own hourly wages at about $18 after having seen increases.
"This year we're investing more than $840 million into Delivery Service Partner rate increases and new programs for delivery drivers," Amazon spokesperson Simone Griffin told FOX Business. "While individual wages and benefits vary by geography, and are set by the Delivery Service Partners, we anticipate that on average drivers in the U.S. can earn $20.50 per hour or more. We actively audit Delivery Service Partners to ensure compliance with our minimum pay and other contractual requirements."
Amazon says on its hiring website that drivers can expect 40 hours of work each week, full benefits, competitive pay and access to a vehicle, among other things. (Alejandro Martinez Velez/Europa Press via Getty Images / Getty Images)
Amazon has had delivery service partners since 2018. Earlier this month, the company said those entities collectively had over 279,000 drivers around the world.
The company said in a press release that $440 million of its recently-announced $840 million investment would go toward DSP rate increases to "help DSPs provide even greater wages and benefits to drivers," in addition to retaining existing ones. It will also cover some tuition for education opportunities and provide help locating child care services, among other things.
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The value of the company’s stock has seen a rise of over 50% from the start of the year.
Eric Revell contributed to this report.
