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    Home » Amazon raises pay of US hourly workers in fulfillment, transport ops
    Amazon-9.19
    Amazon-9.19
    Tech Trends

    Amazon raises pay of US hourly workers in fulfillment, transport ops

    By Heidi LuoSeptember 19, 2024No Comments3 Mins Read
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    • Amazon announces over $2.2 billion investment in wage increases for U.S. workers, raising hourly base pay to more than $22.
    • New employee benefits to include free Prime memberships, enhancing the compensation package as Amazon heads into the holiday season.

    OUR TAKE
    Amazon is giving its US fulfilment and transportation staff a big pay rise. The new hourly rate is over $22, and total compensation, including benefits, is now over $29 per hour. This financial boost is part of a $2.2 billion investment and comes with extra perks like free Prime memberships for employees starting next year. The changes are designed to boost employee satisfaction and retention as Amazon prepares for the holiday season rush. I see these changes as a strategic move to meet the growing demand for better worker pay in the logistics sector, which could set a precedent for other industry giants.
    –Heidi Luo, BTW reporter

    What happened

    Amazon is raising the base hourly wage for its fulfilment and transportation workers in the US to more than $22. This update is part of a broader compensation improvement plan that will see Amazon spend more than $2.2 billion on wage increases.

    The comprehensive benefits package will also increase total compensation to more than $29 per hour, showing Amazon’s commitment to competitive pay structures.

    The wage adjustments will begin to be implemented this month, a strategic move ahead of the busy holiday shopping season. By early next year, Amazon employees will also enjoy a new benefit: free prime memberships.

    These updates follow increased demands from Amazon’s workforce, which recently received significant support from the Amazon Labor Union’s affiliation with the International Brotherhood of Teamsters.

    Also read: Intel rises as Amazon deal boosts struggling foundry unit’s prospects

    Also read: Bronfman’s plans for Paramount Global include partnering with Amazon or Apple

    Why it’s important

    Amazon’s recent wage hike is not just a response to employee unrest, but a necessary strategy to attract and retain employees during a labour shortage affecting various sectors across the U.S. The decision is strategically timed as Amazon prepares for the holiday season, traditionally the most demanding period in terms of sales and shipping volumes.

    By improving pay structures and adding attractive benefits such as Prime membership, Amazon aims to reduce turnover and increase job satisfaction among its massive workforce.

    Moreover, these changes highlight a broader trend in the US labour market, where workers are increasingly successful in advocating for better pay and conditions. This is particularly important in the technology and logistics sectors, where labour practices have come under intense scrutiny.

    The involvement of the International Brotherhood of Teamsters, known for its influential role in labour negotiations, suggests potential future advances in labour rights at Amazon.

    Amazon Labor Union US labour market
    Heidi Luo

    Heidi Luo is an intern reporter at Blue Tech Wave specialising in IT and tech trends. She graduated from Cardiff University. Send tips to h.luo@btw.media

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