Amazon Workers Get Wage Increase That Will Cost the Company $1B a Year

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.


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