Amazon.com is raising the pay of its fulfilment and transportation staff in the United States by at least US$1.50 an hour and handing out free Prime memberships as benefits, it said on Wednesday.
The company will spend over US$2.2 billion on the hikes that will take the base salaries of hourly workers to more than US$22 an hour, and more than US$29 an hour including benefits.
Amazon’s decision comes as one of the biggest employers in the U.S. faces pressure from warehouse staff for better contracts and improved working conditions.
In June, the Amazon Labor Union — the first group of company workers to organize at a U.S. warehouse — voted to affiliate with the International Brotherhood of Teamsters, one of the largest U.S. labour unions.
The hikes will roll out starting this month and could help Amazon hire and retain staff as it heads into the key holiday season, typically the busiest shopping period of the year.
The Prime membership will be added to the benefits package early next year.
Amazon employs more than 800,000 full-time and contract workers in the fulfilment and transportation roles in the U.S., according to the company. In 2018, it paid these workers a starting wage of US$15 per hour.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Shailesh Kuber and Devika Syamnath)
