Amazon announced Tuesday that it will be raising wages and benefits for its delivery workers.
In a press release, the monolithic e-commerce giant said that along with kicking in money to raise wages, it will also be providing employees an opportunity to contribute to a 401(k) plan.
“More than 70% of DSP drivers expressed that retirement savings is a critical benefit, which is why Amazon will now offer a 401(k) program to U.S. based DSPs and support owners in matching contributions for drivers. Amazon will provide DSPs an estimated $60 million in the first year to help offset the costs for DSPs that match employee contributions to their teams’ retirement savings and reimburse 100% of the administrative costs through a leading provider of retirement savings benefits.” the release read.
The company will also provide more than $5,000 a year in educational benefits to its drivers which can be used for high school completion courses, college classes or other approved certifications.
In total, Amazon will be investing $450 million to boost wages and benefits for its drivers.
The company’s labor practices and work conditions have been under scrutiny in the wake of reports of hardships workers faced during the pandemic.
SEE ALSO: OSHA investigating deaths of three Amazon workers at N.J. warehouses
Last year the company came under fire for accusations that managers encouraged drivers to save time on bathroom breaks by urinating in bottles. The company initially denied the accusations before acknowledging some claims were true.
Amazon currently employs over 275,000 delivery drivers, according to the press release.
• Vaughn Cockayne can be reached at firstname.lastname@example.org.
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