Amazon is investing US$1 billion (A$1.5 billion) into raising wages and lowering health care plans for its United States fulfilment and transportation workers.
The company revealed that the average pay is increasing to more than $23 per hour and the average total compensation is increasing to more than $30 per hour, when including the value of their industry benefits package.
Some of the company’s most tenured employees will receive an increase of between $1.10 and $1.90 per hour, and full-time employees will receive an average annual increase of $1,600.
The benefits update also included a reduced-cost health care plan at $5 per week with $5 copays. The employees would also receive a free Prime membership, a pre-paid tuition program and 401(k) with company match.
This is planned to reduce weekly contributions by 24% and copays by 87% for primary care, mental health and non-specialist visits for employees using the basic plan.
This comes after seven Amazon facilities went on strike last December in an effort by the Teamsters union to pressure the e-commerce company for a labour agreement during a key shipping period.
It also follows the U.S.’s largest private employer, Walmart, raising average wages for hourly workers to more than US$18 from US$17.50.
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