Amazon to give 500, 000 workers a pay raise

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Amazon to give 500, 000 workers a pay raise

Amazon Inc. said it would give more than 500,000 workers a raise, incentivizing more people to join the e-commerce giant that is looking to fill nationwide tens of thousands of new positions.

As Amazon goes through a process to meet its customer fulfillment, delivery, package sorting and specialty fulfillment services, Amazon will raise the pay by between 50 cents and $3 per hour.The move will cost the company $1 Billion in quotas for workers, explained Amazon executive Darcie Henry in a Wednesday blog post.

The company pushed up its annual compensation review and promised to roll out raises as soon as mid-May through early June.

According to Henry, the company's other teams will hold their annual compensation review throughout the remainder of 2021.

Henry noted that the company has already offered an industry-leading starting wage of $15 an hour.By comparison, Jeff Bezos, Amazon's founder and aging Chief Executive who will transition to the role of executive chair in the first quarter of 2021, does pay a base salary of $81,840 according to a regulatory filing.He sold for more than $10 billion USD Amazon shares in 2020, but according to Forbes estimates the majority of his wealth is worth about $201 billion.

According to Henry, the jobs come with a variety of benefits like financial coverage, dental and vision coverage, parental leave, ways to save for the future and opportunities for career advancement.

Henry further noted that Amazon has a safe and inclusive environment that was ranked among the best workplaces in the world.

This comes, however, as the firm is facing continued backlash from the Bessemer, Alabama Department Stores Union who has accused the e-commerce giant of interfering with a highly anticipated union vote illegally.

Although workers overwhelmingly voted against organizing, the retail union has filed objections to the National Labor Relations Board, asking it to investigate the allegations, schedule a hearing and decide whether to hold a second election or overturn the results.

The Union push at Bessemer was the second in Amazon's 26-year history and only the first time one reached a vote.All the workers reached out to the union last summer, tired of working 10 hour days on their feet, packing boxes or storing products without leaving enough time to take a break.In early February, the mail-in voting began and went on for about 50 days.Organizers promised a union would lead to better working conditions, better pay and more respect.

Moreover, Amazon argued that it already paid more than twice the minimum wage in Alabama and provided workers with health care, vision benefits and dental insurance without paying company dues.

In 2020 the company made an investment in additional bonuses and incentives for frontline teams across its entire operation.

To this article, the Associated Press contributed to this report.

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