- Amazon (AMZN, $114.80) is increasing wages for its US front-line employees—a nearly $1B investment over the next year—in addition to investing in new skills training and wage access programs. Average hourly pay for front-line employees in customer fulfillment and transportation will increase from $18 per hour to more than $19 per hour. With employees earning between $16 and $26 per hour depending on their position and location in the U.S.
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The company also announced it would expand its wage access program, Anytime Pay, to all employees across its US operations. The program enables employees to access up to 70% of their pay any time they want, without fees.
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Amazon's wage hikes, as well as advanced hiring plans of its major retailing rivals, could add upward pressure to a key lever of US inflation over the coming months. Federal Reserve Chairman Jerome Powell has consistently mentioned labor market 'tightness' in his justification for the higher interest rates needed to tame the fastest inflation in four decades.
Why it matters
Amidst the face of rising union pressure where Amazon centres from Staten Island to Southern California have launched their own drives. The e-commerce giant has decided to ditch paying $4.3M on anti-union consultants and instead look to invest $1B.
