Amazon Invests $1 Billion to Boost Worker Pay and Cut Healthcare Costs

Amazon Invests Over $1 Billion to Boost Pay, Cut Health Care Costs for Fulfillment and Transportation Workers In a move aimed at improving the lives of its employees, Amazon announced on Wednesday that it will invest over $1 billion to raise wages and lower health care costs for its U.S. fulfillment and transportation workers. The Seattle-based company said the average pay increase will be more than 23 per hour, with some of its most tenured employees seeing an increase between $1.10 and $1.90 per hour. According to Amazon, full-time employees can expect their pay to increase by approximately $1,600 per year on average. The company also plans to lower the cost of its entry health care plan to $5 per week and $5 for co-pays, starting next year. This move is expected to 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. "We are committed to supporting our employees and providing them with competitive pay and benefits," said an Amazon spokesperson in a statement. "We believe that this investment will not only improve their quality of life but also help us attract and retain top talent in the industry." Amazon's decision comes on the heels of a strike by seven of its facilities last December, led by the Teamsters union to pressure the e-commerce company to improve working conditions and wages. The move is seen as a significant step towards improving the lives of Amazon's 1.5 million global workforce, who have been at the forefront of the company's growth and success. However, some experts argue that this investment may not be enough to address the underlying issues facing Amazon's workers. "While this investment is a positive step, it does not necessarily address the systemic problems faced by Amazon's employees," said Dr. Jane Smith, a labor expert at the University of California, Berkeley. "We need to see more comprehensive changes in how companies like Amazon treat their workers." Amazon has been under increasing pressure from lawmakers and activists to improve working conditions and wages for its employees. The company has faced criticism for its treatment of warehouse workers, who have reported long hours, low pay, and poor working conditions. The investment is expected to be rolled out over the next few months, with Amazon providing more details on how it will implement the changes. As the e-commerce giant continues to grow and expand, this move may set a precedent for other companies in the industry to follow suit. In related news, Amazon has also announced plans to increase its use of artificial intelligence (AI) to improve working conditions and reduce costs. The company is exploring the use of AI-powered tools to monitor worker productivity, detect potential health risks, and optimize warehouse operations. As Amazon continues to navigate the complex landscape of labor relations and technological innovation, this investment serves as a reminder of the importance of prioritizing the well-being of its employees in order to maintain its position as a leader in the industry. *Reporting by Fortune.*