Amazon.com says it’s investing more than a US$1 billion to raise wages and lower the cost of health-care plans for its U.S. fulfillment and transportation workers.

The Seattle-based company said the average pay is increasing to more than $23 per hour. 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.

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Amazon also said it will lower the cost of its entry health-care plan to $5 per week and $5 for copays, starting next year. It will also reduce weekly contributions by 34 per cent and co-pays by 87 per cent for primary care, mental health and most non-specialist visits for employees using the basic plan.

Last December, seven Amazon facilities went on strike, an effort by the Teamsters union to pressure the e-commerce company for a labour 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 corporate-wide 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.

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In January 2024, Walmart Inc. said average wages for hourly workers would exceed $18, up from $17.50. The increase was due to Walmart introducing some higher-paying hourly roles in its automotive centres last year, among other changes, the company said.

Walmart, based in Bentonville, Arkansas, had announced in January 2023 that U.S. workers would get pay raises the following month, increasing starting wages to between $14 and $19 an hour. Starting wages had previously ranged between $12 and $18 an hour, depending on location.

At Minneapolis-based Target Corp., the starting hourly wage ranges from $15 to $24 for workers employed at stores and distribution centres, depending on the location, said company spokesman Brian Harper-Tibaldo said, adding the average hourly wage for a Target store worker is more than $18.

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