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Amazon bumps pay, lowers health insurance costs for warehouse workers
TechXploreยท 2025-09-19 11:08
Core Points - Amazon plans to invest over $1 billion to increase pay and reduce health insurance costs for its warehouse and transportation employees in the U.S. [1] - The average pay for Amazon's logistics workers will rise to $23 per hour, with total compensation exceeding $30 per hour, and full-time employees will receive an annual pay increase of approximately $1,600 [2] Group 1: Employee Compensation - The average pay for warehouse employees will increase to $23 per hour, with total compensation including benefits exceeding $30 per hour [2] - Employees who have been with the company for three years have seen an average pay increase of 35% [5] - Full-time employees will receive about a $1,600 annual pay bump [2] Group 2: Health Insurance Changes - Amazon will lower the cost of its entry-level health plan to $5 per week, with $5 copays starting next year, representing a 34% reduction in weekly costs and an 87% decrease in copays for primary care and mental health services [6] Group 3: Workforce Overview - Amazon is the second-largest private employer globally, with a workforce of 1.55 million, primarily consisting of warehouse employees [3] - The company has faced criticism regarding working conditions in its warehouses, including higher injury rates compared to industry peers [4][8] Group 4: Regulatory and Union Challenges - Amazon has been criticized by regulatory agencies and Congress for its warehouse management and working conditions, leading to union pushes for better wages and safer work environments [4][12] - The company reached a settlement with the U.S. Department of Labor to implement OSHA-approved safety measures following investigations into ergonomic injuries [9] Group 5: Safety and Injury Rates - Despite past criticisms, Amazon reported a decrease in injury rates for three consecutive years, although concerns remain regarding the pace of work and its impact on safety [11] - An administrative court judge ruled in favor of Amazon in a safety case, stating that regulators did not sufficiently link high injury rates to specific jobs or prove that the work pace was hazardous [10]