Amazon to raise average hourly pay in October
Amazon is also trying to fend off recent moves by employees looking to unionize workers, especially in its warehouses
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Amazon is taking steps to attract more workers in a tight labor market as the busy holiday shopping season approaches.
The ecommerce giant announced Wednesday it’s raising its average starting pay for frontline workers from $18 to $19 an hour.
Warehouse and transportation workers would earn between $16 and $26 an hour, depending on their position and location in the U.S.
The change comes in October.
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Browsing the Amazon webpage on an ipad (iStock / iStock)
The minimum wage at Amazon will remain $15 an hour.
The company employed roughly 1.5 million workers as of the end of June.
The move comes ahead of a recently announced Prime Day-like shopping event in October.
The company is the latest major retailer to offer holiday deals earlier this year to entice cautious consumers dealing with tighter budgets.
Amazon warehouse with packages and company logo (Getty Images / Getty Images)
The event will be held October 11 and 12.
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The event will mark the first time Amazon is holding a major sales event twice in a year and follows its annual Prime Day in July.
Workers stand in line to cast ballots for a union election at Amazon's JFK8 distribution center, in the Staten Island borough of New York City, U.S., March 25, 2022. REUTERS/Brendan McDermid./File Photo (Reuters/Brendan McDermid./File Photo / Reuters Photos)
The company is also offering the pay bump as it contends with a growing unionization movement inside its warehouses, driven by worker complaints over pay and working conditions.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 174.63 | -4.59 | -2.56% |
Next month, Amazon warehouse workers in upstate New York will vote in a union election following an organizing drive spearheaded by the Amazon Labor Union, the grassroots group of former and current Amazon workers who pulled off a union win at a Staten Island warehouse in April.
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Amazon had raised its average hourly pay to $18 an hour last year.
The Associated Press contributed to this report.
