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Sunday, December 4, 2022
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Sunday, December 4, 2022
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    Amazon to raise average hourly pay by USD1

    NEW YORK (AP) – Amazon said yesterday it’s raising its average starting pay for frontline workers from USD18 to USD19 an hour, a boost that could help it attract more employees in a tight labour market as the holiday season approaches.

    Amazon said beginning in October, warehouse and transportation workers would earn between USD16 and USD26 an hour, depending on their position and location in the United States (US). The minimum wage at the Seattle-based e-commerce company, which employed roughly 1.5 million workers as of the end of June, will remain USD15 an hour.

    The pay raise follows an announcement from Amazon that it will hold a Prime-Day like holiday shopping event in October, the first time it is having a major sales drive twice in a year, following its Prime Day deals event in July. Target and Walmart also said last week they will offer holiday deals or gift returns in October to accommodate cash-strapped consumers expected to shop earlier and spread out their spending for the holiday season.

    The company is also offering the pay bump amid a growing unionisation movement inside its warehouses, driven by worker complaints over pay and working conditions. Next month, Amazon warehouse workers in upstate New York will vote in a union election following an organising drive spearheaded by the Amazon Labor Union, the grassroots group of former and current Amazon workers who pulled off a union win at a Staten Island warehouse in April.

    The nascent union then lost a subsequent election at a nearby warehouse.

    Amazon raised its average hourly pay to USD18 an hour last year. It said the new raise would cost it USD1 billion in the next year.

    An Amazon worker delivers boxes in Los Angeles. PHOTO: AP
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