In wake of union votes, Amazon has announced to increase the pay of their hourly workers in the United States. Furthermore, the ecommerce giant announced this pay raise for their front-line workers in warehousing and transportation and they will now earn more than $19 an hour. However, this will not affect company’s minimum wage rate of $15 an hour for all hourly workers in the United States.
Amazon will spend additional $1 billion
The company stated that the pay change will be applicable from the beginning of October. On the other hand, other warehouse workers will earn between $16 to $26 an hour depending on their position. Furthermore, the pay raise means that the Seattle based company will spend almost an additional $1 billion over the next year. The company is preparing to enter the peak season which is very busy. Therefore, the pay raise is an effort of attract and retain workers in a tight labor market.
Union votes challenge
Since the subsidization of pandemic, workers at various Amazon facilities have taken steps to organize. Moreover, workers Staten Island, New York have already successfully voted to form the company’s first U.S. union. In addition, Amazon is all set to face another union election at a site near Albany, New York next month. Similarly, the tensions are growing between Amazon and its front-line workforce. The workers are demanding wage increases, more paid time off and adjustments to productivity expectations. Hence, Amazon is finding it tough and challenging to attract and retain their employees.
Pay access program
Earlier, the company stated that increasing the pay and other benefits for drivers is on their agenda list. Now, the company has implemented the new pay structure. In addition, Amazon said it’s also expanding its expanding its pay access program. The program will allow the employees to access up to 70% of their pay as per their requirement. Previously, most Amazon employees received their paychecks once or twice monthly.
Amazon is the second-largest private employer in the country behind Walmart Inc. Amazon employed more than 1.1 million people in the United States in 2021.
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