Amazon Workers Get Free Prime Memberships and Pay Raise

Amazon's Initiative to Support Warehouse Workers

Amazon announced a significant wage increase for its warehouse and transportation employees, raising the average hourly pay to over $22 an hour. In addition, the company is offering free Amazon Prime memberships, valued at $139 annually, to all US employees. This decision comes in response to a tight job market for logistics workers and aims to enhance employee satisfaction.

The Impact of Wage Increases

With over 800,000 workers directly affected, Amazon’s pay raise of at least $1.50 per hour signals a competitive hiring landscape, as rivals like UPS, Walmart, and Target also increase wages. Recent Labor Department statistics indicated that the average hourly wage for transportation and warehouse workers has increased significantly, illustrating the demand for labor in this sector.

• 460,000 unfilled jobs in transportation and warehousing in July.
• 22% increase in average hourly wages since August 2020.
• Expected growth in online sales by up to 9% during the holiday season.

Addressing Safety Concerns

Despite the wage hike, Amazon continues to face scrutiny regarding worker safety and conditions. The Senate Health, Education, Labor and Pensions Committee's investigation revealed hazardous working conditions during peak times such as Prime Day and the holiday season. Amazon has reported improvements, claiming a 28% decrease in work-related injuries.