Amazon Raises Pay and Offers Free Prime for Warehouse and Transportation Workers #

Amazon is increasing wages for its over 800,000 US warehouse and transportation workers and providing them with free Amazon Prime memberships.

The company announced that it will raise wages by at least $1.50 an hour, bringing the average starting wage to more than $22 an hour. Additionally, employees will receive the yearly Prime benefit at no cost.

This decision to raise wages reflects the tight job market for logistics workers, driven by increased online shopping. Despite a cooling labor market over the past year, the economy continues to add jobs.

The transportation and warehouse sector has seen significant wage growth, with the average hourly wage rising to $30.79 in August, a 22% increase from August 2020. In July, the sector had over 460,000 unfilled jobs.

Competitors in the industry have also increased wages for warehouse workers. This wage hike comes ahead of the holiday season, typically the busiest time for online shopping. Sales are expected to climb by up to 3.3% during this period, with online sales projected to grow by up to 9%.

Amazon has faced scrutiny over safety and working conditions in its warehouses. An investigation found that the company’s warehouses are particularly dangerous for workers during major sales events and the holiday season. Workers have repeatedly complained about the demanding nature of their jobs, which involve navigating large warehouses while under constant monitoring.

The company states that it has made progress on worker safety, claiming a 28% reduction in work-related injuries and a 75% decrease in serious injuries over the past five years.