Amazon has announced plans to give half a million of its workers in the US a permanent pay increase after founder Jeff Bozos promised to “do a better job for employees”.
Yesterday Amazon posted on its website stating that it planned to spend $1 billion on increasing the wages of its operations workforce.
More than 500,000 operations workers who currently receive a minimum of $15 an hour, more than double the US minimum wage, by between 50 cents and $3 an hour.
In its statement, Amazon also said it was continuing its relentless hiring spree and looking for tens of thousands of new employees, after onboarding over 500,000 staff last year alone to meet pandemic demand.
Amazon currently employs around $1.3 million people worldwide, and has been calling on other US companies to match its $15 per hour base rate.
“Amazon is hiring now for tens of thousands of jobs across our operations in the U.S., and we’re looking for great people to join our Customer Fulfillment, Delivery, Package Sortation, and Specialty Fulfillment teams,” Amazon’s Darcie Henry said in a statement.
“In support of this effort, we pulled forward our annual fall pay review for these teams and will be rolling out increases from mid-May through early June.
More than 500,000 people will see an increase between at least 50 cents and $3 an hour, which is an investment of over $1 billion in incremental pay for these employees. This is on top of our already industry-leading starting wage of at least $15 an hour and the more than $2.5 billion that we invested last year in additional bonuses and incentives for front-line teams.”
It comes after Bezos pledges to “do a better job for employees” following the companies decisive win against unionisation at its warehouse in Alabama.
Bezos said: “While the voting results were lopsided and our direct relationship with employees is strong, it’s clear to me that we need a better vision for how we create value for employees – a vision for their success.”