Amazon Workers Are Getting Free Prime Memberships

Amazon is increasing wages for its more than 800,000 warehouse and transportation workers in the United States while also providing them with free Amazon Prime membership.

Amazon, one of the country’s largest private employers, announced on Wednesday that it will increase salaries by at least $1.50 per hour, boosting the company’s average starting wage to more than $22. Amazon will also provide staff the $139 yearly Prime benefit for free.

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Amazon Workers Are Getting Free Prime Memberships

Amazon’s move to hike salaries is yet another indication of a tight labor market for logistics workers, fuelled by more Americans purchasing online. The labour market has cooled somewhat over the last year, but the economy continues to add employment.

According to the Labour Department, the average hourly wage for transportation and warehousing workers increased to $30.79 in August, up 22% from August 2020. According to the Labour Department, more than 460,000 jobs in the transportation and warehouse sectors remained unfilled in July.

UPS, Walmart, and Target have also raised compensation for warehouse workers. Last year, UPS reached a five-year agreement with the Teamsters Union, which includes an increase in starting pay to $23 per hour during the contract period.

The wage increase comes ahead of the holiday season, which is normally the largest online shopping period of the year. In a research released last week, Deloitte anticipated that sales would rise by up to 3.3% over the holiday season. Online sales will increase by up to 9%.

Amazon Workers Are Getting Free Prime Memberships

Amazon has also received severe scrutiny about warehouse safety and worker conditions.

The Senate Health, Education, Labour, and Pensions Committee determined that the warehouses are particularly risky for workers during the company’s annual Prime Day event and the holiday season. The company’s employees have often made headlines, complaining about the “gruelling” experience of sprinting around warehouses as large as 28 football fields while the company monitors their every movement.

SOURCE | CNN