Amazon boosts pay and offers free Prime to US workers

Amazon has announced a significant pay increase for its over 800,000 warehouse and transportation workers in the U.S., raising wages by at least $1.50 per hour. This adjustment brings the average starting wage to more than $22 an hour, reflecting the competitive labor market for logistics workers. The company is also providing free Amazon Prime memberships, valued at $139 annually, to its employees for the first time. This move is seen as a response to the ongoing demand for online shopping, especially as the holiday season approaches. The labor market for transportation and warehouse workers has shown signs of tightening, with the average hourly wage rising to $30.79 as of August, a 22% increase from the previous year. Despite a cooling economy, job openings in this sector remain high, with over 460,000 positions unfilled in July. Competitors like UPS, Walmart, and Target have also increased wages, indicating a broader trend in the industry. Amazon's wage hike comes amid scrutiny over working conditions in its warehouses, particularly during peak shopping events like Prime Day and the holiday season. Reports have highlighted safety concerns, with investigations revealing that Amazon's warehouses can be hazardous for workers. However, the company claims to have made progress in improving worker safety, reporting a 28% reduction in work-related injuries and a 75% decrease in serious injuries over the past five years. As the holiday shopping season approaches, Amazon's decision to enhance pay and benefits may help attract and retain workers, ensuring that the company can meet the anticipated increase in online sales, projected to grow by up to 9%. This strategic move not only addresses labor challenges but also aims to improve employee satisfaction and safety in the workplace.