Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Amazon hikes average U.S. starting pay to $18, hires for 125,000 jobs

Stock MarketsSep 14, 2021 05:01PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A worker assembles a box for delivery at the Amazon fulfillment center in Baltimore, Maryland, U.S., April 30, 2019. REUTERS/Clodagh Kilcoyne/File Photo

By Jeffrey Dastin

(Reuters) - Amazon.com Inc (NASDAQ:AMZN) has increased its average starting wage in the United States to more than $18 an hour and plans to hire another 125,000 warehouse and transportation workers, an executive told Reuters.

The world’s largest online retailer has raised pay from an average of around $17 since May. In some locations, the company is giving signing bonuses of $3,000, said Dave Bozeman, vice president of Amazon Delivery Services, or triple what the company offered four months ago.

The fatter paycheck, which Reuters was first to report, shows how big employers are desperate to draw workers in an increasingly tight U.S. labor market. Fewer Americans are seeking jobless claims https://www.reuters.com/business/us-weekly-jobless-claims-near-18-month-low-2021-09-09 just as openings have hit a record in the reopening economy.

Bozeman attributed Amazon's latest compensation increase to fierce competition. Amazon did not give exact figures, but a $1 raise on a $17-per-hour wage would amount to a hike of about 6%.

Amazon, now the second-biggest U.S. private employer, set a $15 an hour minimum wage in 2018. Walmart (NYSE:WMT) Inc recently touted https://www.reuters.com/business/retail-consumer/walmart-bumps-up-hourly-wages-565000-workers-by-1-ahead-holidays-2021-09-02 average hourly wages of $16.40, while Walgreens Boots Alliance (NASDAQ:WBA) Inc said it would raise its minimum https://www.reuters.com/business/walgreens-raise-minimum-hourly-wage-all-team-members-oct-2021-08-31 to $15 in October.

"It's a tight labor market, and we've seen some of that as the entire industry is seeing," said Bozeman, who spoke in an interview at a delivery station in Tukwila, Washington.

He said Amazon would maintain its $15 an hour base pay. Benefits like funding college tuition for workers and starting wages as high as $22.50 in some areas distinguished the online retailer from peers, he said.

MEETING GROWTH

Amazon's news, after logistics hiring it announced in May and corporate recruiting it touted this month https://www.reuters.com/technology/exclusive-amazon-ceo-unveils-55000-tech-jobs-first-hiring-push-under-his-watch-2021-09-01, follows a stretch of increased scrutiny of its labor practices. A failed effort https://www.reuters.com/technology/amazons-win-union-fight-shows-harsh-realities-facing-labor-movement-2021-04-09 by some staff in Alabama this year to organize put on display Amazon's demanding warehouse work and aggressive anti-union stance. After that battle, then-CEO Jeff Bezos said the company needed a better vision for employees.

Andy Jassy, who succeeded Bezos, said in a CNBC interview that aired on Tuesday that the United States ought to raise the federal minimum wage.

Amazon is hiring workers to help run 100 logistics facilities launching this month in the United States, on top of more than 250 that opened earlier this year. Some workers will aid in Amazon's long-in-the-works effort to roll out one-day delivery for Prime loyalty club members.

"The 125,000 (warehouse workers) is really to help us keep up with our growth," said Bozeman, who added that only a minority of jobs were to address attrition. Amazon said it would fill the roles, which are full- and part-time, as quickly as possible but did not offer a timeline.

The company's external delivery service partners aim to hire another 50,000 workers by year-end, too, Amazon said.

Nicole Bilich, a human resources manager, said competitive pay has brought in applicants for her Stockton, California, warehouse, which Amazon plans to launch in October. But hiring 2,200 people in three to four months is no simple matter.

"The biggest challenge we have is really just the numbers of people we need," she said.

Amazon hikes average U.S. starting pay to $18, hires for 125,000 jobs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Mike Mike
Mike Mike Sep 14, 2021 2:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nice pay for work doesn't even require a middle school diploma
Mox Mox
Mox Mox Sep 14, 2021 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
almost 3 grand a month for sorting boxes....wow...I need ask for a hike
peter neal
peter neal Sep 14, 2021 2:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Inflation is here to stay.
Matt Brackley
Matt Brackley Sep 14, 2021 12:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol everyone going to be wearing brown matching uniforms soon
Steven Kemp
Steven Kemp Sep 14, 2021 12:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
they get filthy rich while you barley make ends meet. what a deal
Elephan Mann
Elephan Mann Sep 14, 2021 12:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hey, who you calling barley?!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email