Amazon officials announced Wednesday it’s making a $1 billion investment to raise wages and lower the cost of health care plans for U.S. workers.
The company, based in Seattle, said the average pay is increasing to more than $23 per hour and said that some of its most tenured employees will see an increase between $1.10 and $1.90 per hour. Full-time employees, on average, will see their pay increase by $1,600 per year, according to a report from The Associated Press.
Amazon also said it was lowering the cost of its entry health care plan to $5 per week and $5 for co-pays, starting next year. Amazon said that will reduce weekly contributions by 34% and co-pays by 87% for primary care, mental health and most non-specialist visits for employees using the basic plan, the AP reported.
Amazon has a global workforce of 1.5 million workers.
The development comes after seven Amazon facilities went on strike in December as the Teamsters union tried to pressure the e-commerce company for a labor agreement during a key shopping period. That same month, Amazon reached a settlement with the Occupational Safety and Health Administration that requires the online behemoth to adopt corporatewide ergonomic measures at facilities across the country. The agency claimed hazardous working conditions led to serious lower back and other musculoskeletal disorders at Amazon facilities, according to the AP report.
