Amazon invests $1 billion to boost worker pay and reduce healthcare costs
- Amazon is investing $1 billion to improve worker conditions.
- The average pay for U.S. workers will increase to over $23 per hour.
- These changes aim to enhance employee satisfaction and reduce labor disputes.
In a significant move aimed at improving worker welfare, Amazon has announced that it will be making a $1 billion investment specifically focused on raising wages and lowering healthcare costs for its U.S. fulfillment and transportation employees. This announcement was made by the company in New York on September 17, 2025, revealing that the average pay for its workers will rise to over $23 per hour. Existing employees will see their wages increase between $1.10 and $1.90 per hour, contributing to an average annual income boost of $1,600 for full-time staff. Moreover, the company is also enhancing its healthcare benefits by reducing the cost of its entry health care plan to just $5 per week and setting co-pays at $5 for primary care, mental health, and many non-specialist visits starting next year. These adjustments will translate to a 34% reduction in weekly contributions and an impressive 87% decrease in co-pays for employees opting for the basic healthcare plan. Such initiatives illustrate Amazon's commitment to not only optimizing their worker conditions but also responding actively to labor pressures. The workforce of Amazon is substantial, comprising approximately 1.5 million employees globally. Given the recent labor disputes, including strikes at seven Amazon facilities last December led by the Teamsters union, this new investment could serve as a strategic effort to placate workers and prevent unrest during critical shopping periods. The company's willingness to invest considerable funds in enhancing wages and reducing healthcare costs indicates an acknowledgment of the challenges faced by their workforce. Overall, these changes not only impact the financial landscape of employees but also demonstrate Amazon's intent to boost employee morale and potentially stave off further labor disputes. As they continue to navigate the complex relationship with their workforce, this investment showcases a proactive approach that could reshape the company's reputation in the labor market.