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Amazon (AMZN-1.42%), embroiled in return-to-office drama, has announced plans to raise wages for its hourly warehouse staff and provide them with free Prime memberships.
The online shopping giant said its fulfillment and transportation employees will receive “at least” an additional $1.50 per hour as of this month, bringing their average wage to $22. The news comes as some warehouse workers organize for $25 per hour.
In addition, Amazon plans to incorporate its Prime membership into the employee benefits package, “starting early next year.” The subscription, which typically costs $140 a year, offers perks such as free shipping and video streaming.
Amazon said its wage adjustment is part of ongoing efforts to incorporate feedback from its workforce. The company raised its starting wage to $15 per hour in 2018. Since then, Amazon has continued to increase wages. The latest adjustment reflects a total investment of over $2.2 billion in its workforce, the company said. Amazon is currently valued at $1.69 trillion by market cap.
With over 800,000 hourly workers in the U.S. in front-line roles, the pay increase and benefits boost could help Amazon as it prepares for a busy holiday shopping season — a time when online retail typically sees a massive surge.
The company’s announcement comes just after it revealed its second Prime Day-style marketing stunt, scheduled for October 8-9, and which marks the third consecutive year it has organized the discount extravaganza. “Prime Big Deal Days” will not only take place in the U.S., but will also reach customers in countries including Australia, Brazil, Canada, France, Germany, and the U.K.
In July, Amazon said its latest Prime Day event shattered its own records, with over $14.2 billion in online sales driven by shoppers seeking deals on household essentials, including Amazon Fire TV Sticks, Glad trash bags, and snail serum.