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Amazon stock drops; increase salary, and offers additional driver benefits amid a union dispute

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Amazon (NASDAQ:AMZN)

Amazon (NASDAQ:AMZN), in response to a recent formal challenge from the Teamsters Union, has added its name to the increasing list of businesses enhancing perks and pay to appease workers.

First, the business introduced Next Mile, a new academic initiative for delivery drivers that will give them up to $5,250 annually to use for higher education, including bachelor’s and associate degrees, certifications, and high school graduation. The Seattle-based corporation also disclosed that it has expanded its delivery service partners’ (DSPs’) 401(k) plan and “is providing DSPs with an anticipated $60M over the first year to help these small business owners match employee contributions.”

Parisa Sadrzadeh, Vice President of Amazon’s Worldwide Delivery Service Partner Program, said that since the DSP program’s start four years ago, small businesses all around the world have produced more than $26 billion in revenue for their businesses. “We will continue to develop with them and leverage our economies of scale and resources to assist them in giving best-in-class products to their employees. We couldn’t have done that without DSPs and their outstanding teams.”

Delivery partners explicitly mentioned the 401(k) scheme as a benefit they clamored for. More than 70% of DSP drivers surveyed, according to Amazon, referred to retirement savings as an “essential perk”.

A rate rise was also announced by Amazon (AMZN), which will enable DSPs to “provide competitive pay to their drivers” in addition to the additional benefits. Over the course of the following year, an estimated $450 million will be invested in additional benefits and rate hikes.

Amazon stock price

Inflation would be the defining characteristic of 2022 if there were just one. Investors and consumers alike have been on the lookout for indications that rising prices will finally slow down. In light of this, Amazon’s shares fell by as much as 6%.

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