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Amazon Prime is now a bonus for warehouse workers, but not for companies


Amazon Prime is now a bonus for warehouse workers, but not for companies

Amazon is offering its warehouse workers a new benefit that was long overdue.

The e-commerce giant announced on Wednesday that starting next year, the company will not only increase the hourly wages of its service employees by at least $1.50, but will also offer its Prime membership as a bonus.

Launched in 2005 for $79 a year, Amazon Prime has steadily expanded its initial offering of free two-day shipping to include streaming and digital benefits, grocery shopping discounts, medical and prescription benefits, and more. Amazon Prime now boasts a user base of over 180 million U.S. shoppers (as of March), and the price has also risen to $14.99 a month or $139 a year.

“Our front-line team members across all our operations are instrumental in bringing the magic of Prime to customers, and starting early next year, Prime will be part of their benefits package,” wrote Udit Madan, Amazon’s vice president of worldwide operations, in a blog post announcing the new benefits.

However, the free Prime membership is exclusively for frontline workers, the company said. Assets. Corporate employees will still have to shell out the full amount for their own subscriptions. However, all employees, both in logistics and corporate, will continue to receive a 10% discount on Amazon goods, up to a maximum discount of $100 per year.

Even with the new increase in average base pay to over $22 per hour, Amazon warehouse workers’ pay is still far lower than that of their salaried counterparts. According to ZipRecruiter, the average Amazon employee makes $133,000 per year, or about $64 per hour.

As number 2 on the Fortune 500Amazon employs more than 1.5 million people and said the new pay increase represents a total investment of more than $2.2 billion in its workforce. Including benefits options, the average total compensation comes to $29 an hour, or about $55,000 for a 40-hour workweek.

The pay raise and work perks come as Amazon prepares for the busy holiday season and an upcoming Prime Day-like sale on Oct. 8 and 9. The fall sale is the third such savings bonanza this year; the previous events took place in the spring and summer. During the Prime Day event in July, customers spent a record $14.2 billion, up 11% from the previous year, according to sales tracking data from Adobe Analytics.

Amazon also made waves this week when CEO Andy Jassy announced plans to send employees back to the office five days a week. Previously, office workers had to report to their buildings at least three days a week, depending on the needs of their team. But the new full-time requirement makes exceptions for extenuating circumstances or for employees whose managers had already approved a fully remote position.

“Looking back over the past five years, we continue to believe that the benefits of working together in the office are significant,” Jassy wrote in a memo to employees, saying he wanted to operate like “the largest startup in the world.”

Jassy also plans to reduce management levels that have been bloated by dramatic hiring increases in recent years, according to employees familiar with Assetsby Jason Del Rey.

The plan to return to the office was not well received by some employees, who sharply criticized the new rules in the company’s internal Slack channel, according to Business Insider.

Others used LinkedIn to search for new jobs.

“If you have remote work options, please message me,” wrote an Amazon Web Services engineer. “Nothing is out of the question. I would rather go back to school than go back to working in an office.”

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