Amazon is raising the minimum starting pay for its U.S. core operations workers — including delivery drivers and fulfillment center employees — to $20 per hour, with average hourly pay climbing to nearly $24. The company says the increase amounts to $1 more per hour for eligible employees.
A $1.5 Billion Investment in Pay
“When you add in the value of our industry-leading benefits, average total compensation comes to more than $32 per hour,” Amazon Senior Vice President Udit Madan wrote in a blog post.
The raise represents an investment of more than $1.5 billion, or roughly 0.06% of Amazon’s $2.68 trillion market cap.
New Banking and Grocery Benefits
Beyond pay, Amazon says it will give employees access to a low-cost banking system called Day 1 Financial, a membership in First Tech Federal Credit Union, and a 20% discount on in-store purchases at Whole Foods Market, the premium grocery chain Amazon owns. Employees who order groceries online through Amazon will receive a 10% discount.
Amazon already offers free Prime memberships, prepaid education programs, and healthcare coverage among its benefits.
Mixed Reaction from Workers
On a subreddit for Amazon fulfillment center employees, the response has been less than enthusiastic. Regarding the Whole Foods discount, one worker commented, “So it would make it cost almost the same as a regular store, then? Hahaha,” a reference to Whole Foods’ historically higher prices.
via TechCrunch