Amazon to implement wage increase for 500,000 workers

Amazon may have had issues with its workers, and there are also talks about the formation of a union, but it recently announced something that will make its employees happy. It was reported that the e-commerce giant will be issuing a pay hike for its 500,000 workers.

The wage hike confirmed by Amazon

As per CNN Business, Amazon is hiring again for thousands of people to fill its employment needs across its operations in the U.S. The company also announced that there would be wage increases as well.

The company will hire workers for its package sortation, delivery, and customer fulfillment. Along with this announcement for hiring, Amazon’s vice president of People eXperience and Technology, Worldwide Consumer, Darcie Henry, said that the company would move up its annual fall pay review for the said workers’ groups.

Jeff Bezos’ firm is planning to roll out the wage hike in May. However, it should be noted that there is no plan to increase the $15 per hour minimum salary. What will be offered is for those receiving less, they will get an hourly pay increase between $.50 and $3. Based on the report, Amazon is allocating a total of more than $1 billion for this additional wage.

"This is on top of our already industry-leading starting wage of at least $15 an hour and the more than $2.5 billion that we invested last year in additional bonuses and incentives for front-line teams," Henry said.

He went on to say, “These jobs come with a range of great benefits, like medical, dental, and vision coverage, parental leave, ways to save for the future, and opportunities for career advancement - all in a safe and inclusive environment that’s been ranked among the best workplaces in the world.”

Amazon’s business is picking up

CNBC reported that Amazon’s latest hiring spree is the result of the increase in demand. The company experienced a surge in orders amid the coronavirus pandemic since most people are staying home and have shifted to buying online instead of going out.

Finally, as the economy in the U.S. is starting to reopen, Amazon is one of the businesses that is expected to stay busy because online shopping is predicted to surge even more. With that said, there will be a staffing shortage; thus, the company wants to hire more people now and offer the incentive of a wage increase.