Amazon has announced that they will increase starting hourly pay for most frontline employees in warehouses and transportation.
Starting hourly will now be more than $19 an hour, far exceeding minimum wage in most areas and nearly tripling the federal minimum of $7.25 an hour.
The company’s minimum of $15 an hour for all hourly workers in the US remains unchanged. For those who work in Amazon’s customer fulfillment and transportation groups, pay increases to $16 an hour. In addition, the Seattle-based company is working on a program that allows employees to get paid more than once or twice a month.
Although it’s a breath of fresh air for employees of Amazon and those considering a job with the retail giant, it doesn’t come without a cost. A high cost.
A spokesperson explained that the company would cost nearly $1B in additional spending over the next year.