Amazon raises hourly pay for warehouse, transportation workers | Inquirer Business

Amazon raises hourly pay for warehouse, transportation workers

To attract and retain workers in a tightening U.S. labor market
/ 10:03 AM September 29, 2022

Amazon logo at its logistics center

The logo of Amazon is seen at the company’s logistics center in Bretigny-sur-Orge, near Paris, France. REUTERS/Gonzalo Fuentes/File photo

Amazon.com Inc’s warehouse and transportation workers will receive an increased average starting pay of more than $19 per hour from $18, the world’s largest online retailer said on Wednesday.

The wage hike would help the company attract and retain workers in a tightening U.S. labor market as the peak season for gifting gets underway.

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Amazon said the pay hikes would cost the company nearly $1 billion over the next year.

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Employees will now earn between $16 and $26 per hour depending on their position and location in the United States, the company added.

Amazon‘s minimum wage for hourly employees in the U.S. remains $15, a spokesperson told Reuters.

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The online retailer’s decision also comes as some workers continue to push to unionize Amazon facilities in the United States. Only one Amazon facility has voted to unionize so far.

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The company is battling soaring inflation and high employee turnover as workers seek higher wages to meet the rising cost of living.

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Amazon had over 1.5 million full and part-time employees globally as of the quarter ended June 30, with a majority of workers in the United States.

Earlier on Wednesday, Amazon announced new devices including a lineup of voice-controlled devices, an updated e-reader which users can write on and a contactless gadget that can monitor people’s sleep.

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TAGS: Amazon, Labor Shortage, wage increases

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