Amazon will increase the average hourly wage by $1 to $19 in October

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FILE – An Amazon worker delivers boxes in Los Angeles on Oct. 1, 2020. Amazon said Wednesday, Sept. 28, 2022, it was raising its average starting wage for frontline workers from $18 to $19 an hour , a boost that could help it attract more employees in a tight labor market as the holiday season approaches.Damien Dovarganes/AP

NEW YORK (AP) — Amazon said Wednesday it was raising its average starting wage for frontline workers from $18 to $19 an hour, a boost that could help it attract more employees in a tight labor market as the holiday season approaches.

Amazon said that starting in October, warehouse and transportation workers will earn between $16 and $26 an hour, depending on their position and location in the United States. Minimum wage at the Seattle-based e-commerce company, which employed about 1.5 million workers as of late June, will remain at $15 an hour.

The pay rise follows Amazon’s announcement that it will hold a Prime-Day-style holiday shopping event in October, the first time it has held a major sales campaign twice a year, after its Prime Day event in July. Target and Walmart also said last week they would offer holiday deals or gift returns in October to meet the needs of cash-strapped consumers who should shop earlier and spread out their shopping season spending. holidays.

The company is also offering a pay rise amid a growing union movement at its warehouses, driven by worker complaints over wages and working conditions. Next month, workers at Amazon warehouses in upstate New York will vote in a union election following a organizing drive by the Amazon Labor Union, the grassroots labor group. current and former Amazon workers who won a union victory at a Staten Island warehouse in April. The fledgling union then lost a subsequent election at a nearby warehouse.

Amazon had raised its average hourly wage to $18 last year. He said the new increase would cost him $1 billion next year.

Separately, the company said its paid access program, Anytime Pay, will also change to allow employees to be paid more than once or twice a month.

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