Amazon announced on Wednesday it has decided to ramp-up investments in employee payments and healthcare by pumping in $1 billion.
The technology and e-commerce giant has been facing flak for what employees claimed was unfair treatment, low wages, and failure to implement safety measures for them.
The company, which had more than 1.5 million full-time and part-time employees in its records until last year, said it will increase the average pay of its US fulfilment and transportation employees to more than $23 per hour, adding that full-time employees will see a wage hike by $1,600 per year, on average.
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Amazon will also be lowering healthcare costs for them, bringing the cost of entry-level healthcare plan to $5 per week and $5 for co-pays, starting in 2026.
This 34 per cent drop in weekly contributions from employees will push up the average total compensation by the firm to over $30 an hour.
Last year, in a stand-off, Amazon workers at seven US facilities walked off the job during holiday season after union officials said the retailer had failed to negotiate contracts. The company hires temporary workers and independent contractors seasonally, especially around the holiday rush time.
Employees have been protesting against the conglomerate’s unfair treatment to them, after which the company implemented safety measures that prevent workers from developing back problems and other ergonomic injuries.
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