Amazon Invests $1 Billion in Wage Hike, Health Care Plan Reductions
TL/DR –
Amazon is investing over $1 billion to increase wages and reduce health care costs for its U.S. fulfillment and transportation workers, planning to increase average pay to more than $23 per hour and reduce the cost of entry health care plans to $5 per week. The changes are expected to increase the pay of full-time employees by $1,600 annually on average, and reduce weekly contributions by 34% and co-pays by 87% for primary care, mental health and most non-specialist visits for employees using the basic plan. This comes after workers at seven Amazon facilities went on strike for better conditions and the company was required to adopt better ergonomic measures due to hazardous working conditions.
Amazon Invests Billions in Employee Health and Wages
Amazon has announced it is pumping over $1 billion towards raising wages and reducing health care costs for its U.S. fulfillment and transportation workers. The Seattle-based e-commerce giant said the average pay would increase to over $23 per hour, and full-time employees will see an annual increase of $1,600 on average.
Health Care Plans Becoming More Affordable
Amazon’s entry-level health care plan will drop to $5 per week, and co-pays will also be $5, starting next year. Amazon says this will reduce weekly contributions by 34% and co-pays by 87% for primary care, mental health, and most non-specialist visits for employees using the basic plan. Amazon’s global workforce currently stands at 1.5 million.
Previous Employee Actions and Company Responses
Last December, workers at seven Amazon facilities protested, seeking better labor conditions. This led Amazon to reach a settlement with the Occupational Safety and Health Administration that requires the corporation to adopt ergonomic measures to prevent musculoskeletal disorders at its facilities.
Wage Increases in Other Major Companies
Early 2024, Walmart announced that average wages for hourly workers would exceed $18, a boost from $17.50 due to the introduction of higher-paying roles in its Auto Care Centers. Minneapolis-based Target also offers an hourly wage between $15 and $24, depending on the location, with an average hourly wage of more than $18.
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