Amazon invests over $1.28b to raise employee pay, lower healthcare costs
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The benefits will be enjoyed by US fulfilment and transportation staff.
PHOTO: AFP
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NEW YORK – Amazon.com said on Sept 17 it is investing more than US$1 billion (S$1.28 billion) to boost pay and reduce healthcare costs for US fulfilment and transportation employees, pushing up the average total compensation to over US$30 an hour, including benefits.
The technology giant said the average pay would increase to more than US$23 per hour, adding that full-time staff will see their pay go up by US$1,600 per year, on average.
It is lowering the cost of its entry-level healthcare plan to US$5 per week and US$5 for co-pays, starting in 2026, representing a 34 per cent drop in weekly contributions from workers.
Amazon had more than 1.5 million full- and part-time employees at end 2024. It hires temporary workers and independent contractors seasonally, particularly around the crucial holiday season.
In 2024, Amazon workers at seven US facilities walked off the job during the holiday shopping rush, after union officials said the retailer failed to come to the bargaining table to negotiate contracts.
Employees were protesting what they said was Amazon’s unfair treatment of its workers.
In December, Amazon agreed to implement safety measures at all its US facilities to settle a federal agency’s claims that it failed to prevent workers from developing back problems and other ergonomic injuries. REUTERS
