E-commerce giant Amazon on Wednesday announced a $1 billion plan to boost wages and cut health care costs for its fulfillment and transportation workers in the United States.The Seattle-based company increased the average hourly pay to over $23. Staff with longer service will see their wages go up by between $1.10 and $1.90 an hour. For full-time employees, the change means an extra $1,600 a year on average.Starting next year, Amazon will also reduce the cost of its basic health plan. Weekly contributions will fall to $5, while co-pays will also be set at $5. According to the company, this will cut weekly costs by 34% and bring down co-pays for primary care, mental health and most non-specialist visits by 87%.Amazon employs around 1.5 million people globally.The announcement follows a period of disputes over working conditions. Last December, employees at seven Amazon sites went on strike, with the Teamsters union pushing for a labour deal during the busy holiday shopping season. In the same month, the company settled with the Occupational Safety and Health Administration, agreeing to introduce ergonomic measures nationwide after the agency linked unsafe practices to back and musculoskeletal injuries among staff.Other major retailers have also been raising wages. In January 2024, Walmart, the largest private employer in the US, said average hourly pay would rise above $18, up from $17.50. The company credited the increase to the addition of higher-paid roles in its Auto Care Centres.A year earlier, in January 2023, Walmart raised starting pay for US staff to between $14 and $19 an hour, compared with the previous range of $12 to $18, depending on the store location.
