Amazon is investing more than $1 billion to increase pay and reduce healthcare costs for US fulfillment center and transportation employees, resulting in an average total pay of more than $30 per hour, including benefits, the company said Wednesday, Sept. 16.
Amazon said the investment will increase average wages by more than $23 per hour, and full-time workers will see their salaries increase by an average of $1,600 per year.
The tech giant is reducing the cost of its entry-level health care plan (which is a basic health insurance plan) by $5 per week and $5 for co-pays starting in 2026, representing a 34% reduction in employees’ weekly contributions, according to a Reuters report.
Amazon had more than 1.5 million full-time and part-time employees by the end of 2024, according to the report. The company hires temporary workers and independent contractors, especially during the crucial holiday season, due to increased demand.
By the end of 2024, workers at seven US factories walked off the job during the holiday shopping season after union officials said the retailer had failed to come to the bargaining table to negotiate a contract. The workers were protesting what they perceived as unfair treatment by Amazon, and they complained about a range of issues, including working conditions and pay.
In December last year, Amazon agreed to implement safety measures at all of its US facilities to settle claims by the Occupational Safety and Health Administration (OSHA), a federal agency, that it failed to prevent back problems and other ergonomic injuries among workers.
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This article includes reporting from Reuters.