Amazon (AMZN) announced it will raise the pay of its U.S. fulfillment and transportation workers by at least $1.50 per hour, bringing base salaries to more than $22 per hour. The wage increases are part of a $2.2 billion initiative aimed at improving compensation and working conditions, with additional benefits like free Prime memberships for employees starting early next year. The move comes as Amazon faces pressure from labor unions to improve contracts and worker conditions at its warehouses.
The pay hikes are designed to help Amazon hire and retain workers during the busy holiday season, when demand peaks for the company’s logistics services. The Amazon Labor Union, which successfully organized workers at a Staten Island warehouse, recently affiliated with the Teamsters Union, adding further momentum to the labor movement. Amazon employs more than 800,000 full-time and contract workers in fulfillment and transportation roles across the United States.
Market Overview:- Amazon raises U.S. worker pay by at least $1.50 per hour in fulfillment and transportation operations.
- Wage increases are part of a $2.2 billion initiative to boost pay and benefits, including free Prime memberships.
- Move comes as Amazon faces growing pressure from labor unions to improve working conditions.
- Base wages for U.S. workers in fulfillment and transport will now exceed $22 per hour, with total compensation over $29 per hour.
- The Amazon Labor Union recently affiliated with the Teamsters Union, pushing for stronger contracts.
- Amazon is preparing for the key holiday shopping season, typically its busiest time of year.
- The pay hikes may improve worker retention and hiring ahead of the holiday season.
- With the labor union gaining traction, Amazon could face more demands for improved worker conditions.
- Free Prime memberships will be added as part of employee benefits starting in 2024.
As Amazon moves to enhance its worker compensation, the company aims to mitigate labor challenges and maintain smooth operations ahead of the holiday rush. With labor unions gaining strength, the company may need to continue adjusting its policies to meet the growing demands of its workforce.
