Amazon.com is raising the pay for its US fulfilment and transportation staff by at least US$1.50 an hour, bringing base salaries to over US$22 an hour and US$29 an hour when including benefits. The company will spend over US$2.2 billion on these wage increases, which come amidst pressure from employees for better contracts and working conditions.
The wage hikes, set to roll out this month, are expected to help Amazon hire and retain workers as it approaches the busy holiday shopping season. Additionally, Amazon will provide free Prime memberships as part of its benefits package starting early next year.
This move follows increasing efforts from warehouse workers to organize, with the Amazon Labor Union recently affiliating with the International Brotherhood of Teamsters. The company employs more than 800,000 workers in fulfilment and transportation roles in the US, and the starting wage for these employees was US$15 an hour in 2018.
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