Amazon.com announced Wednesday it is spending over $1 billion to increase compensation and reduce healthcare expenses for American fulfillment and transportation workers, increasing the average total compensation to over $30 an hour with benefits.
The tech giant stated the average compensation would rise to over $23 per hour, further stating that full-time workers will have their compensation raise by $1,600 a year on average.
The firm is reducing the cost of its lowest-cost health plan to $5 per week and $5 for co-payments, beginning in 2026, which is a 34% reduction in weekly contributions by workers.
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Amazon employed over 1.5 million full-time and part-time workers at the close of last year.
Amazon invests over $1 billion to raise employee pay
The firm also employs seasonal temporary workers and independent contractors, especially during the important holiday season.
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In the previous year, Amazon employees at seven facilities in the United States had gone on strike amidst the holiday shopping season, after union leaders claimed the retailer refused to meet with them at the bargaining table to negotiate contracts. Workers were protesting what they claimed was Amazon’s unfair treatment of its employees.
In December, Amazon also agreed to install safety features at all of its U.S. warehouses to resolve a federal agency’s allegations that it did not keep workers from developing back issues and other ergonomic injuries.
