Amazon dedicates a billion dollars to boosting the wages of its warehouse workers and drivers, aiming for a substantial wage increase.
In a significant move, Amazon has announced plans to boost the wages of its U.S. fulfilment and transportation employees. The tech giant is investing $1 billion to raise the average pay for these employees to over $23 an hour, with total compensation, including benefits, exceeding $30 an hour. This decision follows a 35% pay growth for long-term employees with more than three years' service at the company. Full-time Amazon workers will also receive healthcare coverage from day one, and copays for healthcare services will drop by 87%, to just $5. Amazon's Worldwide Operations SVP, Udit Madan, shared that the company is constantly working to improve benefits and services for its employees. In addition to wage increases, Amazon offers a range of benefits to its workforce. These include flexible time off, paid parental leave, free training, retirement savings, and parental leave. The company also provides 24/7 mental health support and has reduced the weekly contribution for the entry-level health plan, marking a 34% drop. Amazon is an important part of local economies and communities, and it offers free tuition for learning opportunities from 475 partners. However, it's worth noting that this move comes as the federal minimum wage remains low at $7.25 an hour. In 2024, workers at seven US facilities walked off during the peak holiday season after failing to negotiate contracts and alleging unfair worker treatment. Amazon's efforts to improve employee benefits are part of a broader strategy to attract and retain top talent. The company offers company 401(k) matching for retirement savings and provides its employees with an average annual pay increase of $1,600. Long-tenured employees will receive an additional $1.10-$1.90 per hour. By investing in its employees, Amazon is not only demonstrating its commitment to its workforce but also contributing to the overall economic health of the communities in which it operates. As the company continues to grow and evolve, it is likely that we will see further initiatives aimed at improving the lives of its employees and the communities it serves.
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