Amazon workers are getting raises and free Prime memberships

Nathaniel Meyersohn, CNN

New York (CNN) — Amazon is raising salary for its much than 800,000 US storage and proscription workers and giving them Amazon Prime for free.

Amazon, 1 of nan country’s largest backstage employers, announced Wednesday that it will raise wages by astatine slightest $1.50 an hour, bringing nan company’s mean starting costs to much than $22 an hour. Amazon will besides connection nan $139 yearly Prime use to labor for free.

Amazon’s determination to raise wages is different motion of a tight jobs marketplace for logistics workers, fueled by much Americans shopping online. The labour marketplace has cooled considerably during nan past year, but nan system is still adding jobs.

The mean hourly costs for proscription and storage workers roseate to $30.79 successful August, up 22% from August of 2020, according to nan Labor Department. In July, much than 460,000 jobs were unfilled successful nan proscription and storage sector, nan Labor Department said.

Rivals specified arsenic UPS, Walmart and Target person besides bumped up wages for storage workers. UPS struck a five-year woody pinch nan Teamsters national past twelvemonth that included a jump successful starting salary to $23 an hr during nan contract.

Amazon’s costs hike comes up of nan vacation season, typically nan busiest online shopping agelong of nan year. Sales are expected to climb by up to 3.3% this vacation stretch, Deloitte predicted successful a study past week. Online income will turn by up to 9%.

Amazon has besides faced aggravated scrutiny complete information and moving conditions astatine warehouses.

An investigation by nan Senate Health, Education, Labor and Pensions Committee recovered Amazon’s warehouses are particularly vulnerable for workers during nan company’s yearly Prime Day arena arsenic good arsenic nan vacation season. The company’s workers person many times made headlines, pinch persistent complaints astir nan “grueling” acquisition of racing astir warehouses that tin beryllium nan size of 28 shot fields while nan institution tracks their each move.

Amazon said Wednesday that it has made advancement connected worker safety. The institution claims work-related injuries are down by 28% and superior injuries are down by 75% complete nan past 5 years.