Amazon Workers Are Now Receiving Free Prime Memberships and Wage Boosts

Amazon has made a significant announcement regarding its workforce. The company will raise wages for over 800,000 US warehouse and transportation workers by at least $1.50 an hour, elevating the average starting wage to more than $22 per hour. In addition, all employees will receive a free Amazon Prime membership, valued at $139 per year.

Impact on the Job Market

This decision highlights the tight labor market for logistics workers, particularly as the economy continues to grow despite a cooling job market. The average hourly wage for transport and warehouse workers has surged to $30.79, representing a 22% increase since August 2020.

Competitive Wage Increases

Other major employers like UPS, Walmart, and Target have also increased wages in response to labor shortages. UPS's recent contract with the Teamsters union guarantees a starting pay of $23 an hour, demonstrating a broader trend in wage growth across the industry.

Preparation for the Holiday Season

Amazon’s timing aligns with the upcoming holiday shopping season, known for its significant growth, with expectations set for sales to rise by up to 3.3% during this period. Online sales are predicted to grow by 9%.

Focus on Worker Safety

Despite facing scrutiny over working conditions, Amazon claims to have improved worker safety, reporting a 28% reduction in work-related injuries over five years and a 75% decrease in serious injuries.