Amazon recently disclosed its intention to boost the average total compensation for fulfillment and transportation employees in the U.S. to over $29 per hour as the Prime Big Deal Days approach. This move is set to increase the annual income of full-time workers by an average of $3,000, signaling a significant investment exceeding $2.2 billion ahead of the holiday rush. The decision to increase pay comes after Amazon faced criticism and scrutiny, particularly regarding worker safety and compensation practices at its fulfillment centers.
In response to increasing scrutiny and the rise in unionization efforts, Amazon also raised the pay for delivery drivers to $22 per hour and committed $2 billion to enhance compensation and support for employees. As the e-commerce giant prepares for heightened demand during the holiday season, the company is focusing on improving workforce conditions and ensuring competitive wages to attract and retain employees. Despite facing challenges related to worker rights and safety in the past, Amazon's efforts to enhance employee compensation signify a strategic move to address concerns and meet the evolving needs of its workforce.
Moreover, the holiday season hiring spree by Amazon included hiring 150,000 full-time, seasonal, and part-time workers in 2022 and 2021 to manage the surge in online sales. Additionally, the company employed over 110,000 seasonal workers in India ahead of the festive season, as reported by the Times of India. This recruitment drive underscores Amazon's commitment to bolstering its workforce to handle the increased demand and deliver a seamless shopping experience to customers during the holiday period.