MONEY

Prime time at Amazon: Warehouse workers get free subscription, raise

Sep 18, 2024, 2:54 PM | Updated: 5:02 pm

Photo: An Amazon Prime delivery person lifts packages while making a stop at a high-rise apartment ...

An Amazon Prime delivery person lifts packages while making a stop at a high-rise apartment building, Nov. 28, 2023, in Denver. (Photo: David Zalubowski, AP)

(Photo: David Zalubowski, AP)

You may have believed it was already standard practice, but Amazon employees are getting a new perk: a free Prime subscription. The service, which costs $140 a year, offers speedy shipping and video streaming, among other perks.

Oh yes! And they are also getting a $1.50 pay increase.

“Our front-line team members across our operations are a big part in bringing the magic of Prime to customers, and starting early next year, Prime will become part of their benefits package,” Udit Madan, VP of Amazon Worldwide Operations, said in a post announcing the changes. “Hourly team members in the U.S. will get Prime at no additional cost for as long as they are a part of the Amazon team.”

Amazon is not the first big retailer to go this route. Costco, for example, has long offered free executive memberships.

Other Amazon news: Employees ordered to report to work 5 days a week to ‘strengthen culture’

Amazon announced Wednesday it is raising wages for its hourly warehouse workers. The average base pay for front-line employees in the U.S. will increase to more than $22 an hour, up from roughly $20.50 an hour, the company said.

In financial terms, Prime membership is far from the biggest line item in a compensation package that also includes health care benefits from the first day of employment and a 401(k) program with a company match. Prime currently costs $139 a year, including free delivery, Amazon Music, Prime Video and other benefits. But beyond that, it’s a symbolic move that further aligns the interests of Amazon’s workers with those of its customers, effectively ensuring that everyone is a member of the same club.

Last week, Amazon raised wages for its contracted delivery drivers to roughly $22 an hour as part of a $2.1 billion investment this year into its third-party logistics program. The wage hikes come as Amazon prepares for the peak holiday shopping season, a period when retailers typically see a surge in online shopping.

Amazon said Tuesday it plans to host a second Prime Day-like deal event on Oct. 8-9, the third year it has held the discount event.

More company news: Amazon boosts pay for subcontracted delivery drivers amid union pressure

Hourly workers at Amazon who fulfill orders for millions of Prime members have always needed to pay if they wanted to be Prime members themselves, but that will change starting early next year.

The e-commerce giant announced an updated pay and benefits package for hourly employees in its fulfillment and transportation network Thursday morning.

Simmering in the background is the union movement. While the Amazon Labor Union achieved a historic victory at a Staten Island warehouse in New York in 2022, other attempts have faced challenges.

The International Brotherhood of Teamsters has been increasingly involved in efforts to organize Amazon workers.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here

Money

Cooks, service workers...

Bill Kaczaraba

New Seattle minimum wage, non-taxable tips for 2025 announced

Starting January 1, 2025, all businesses in Seattle, regardless of size, will be required to pay employees a minimum wage of $20.76 per hour.

16 hours ago

Image: The exterior of a Bank of America location can be seen in Austin, Texas, on July 16, 2024....

Steve Coogan

Bank of America customers in Seattle area, US report account issues, $0 balances

Tens of thousands of Bank of America customers across the country reported major issues accessing their bank accounts Wednesday.

3 days ago

Tacoma Public Utilities truck...

Bill Kaczaraba

Tacoma Public Utilities rates to go up for the next 2 years

Tacoma Public Utilities (TPU), following the lead of its Seattle counterpart, is set to raise its monthly power rates in both 2025 and 26.

3 days ago

Fictitious html pages and hacker programs are seen on screens while a man has his hands on the keyb...

Bill Kaczaraba

Can you really protect yourself from identity theft?

Americans lost $12.5 billion to online scams last year, according to the FBI. But there are ways you can protect yourself.

3 days ago

rubstello ferries wsf...

Bill Kaczaraba

It will now cost you more to ride Washington ferries

It has become an annual cost of passage. The 4.25% fare increase for Washington ferries goes into effect Tuesday.

4 days ago

Photo: Washington's Lottery said there are unclaimed prizes expiring....

Julia Dallas

Check your tickets! Unclaimed lottery prizes expire next month

You could have won thousands of dollars. Washingon's Lottery said there are unclaimed prizes expiring next month.

5 days ago

Prime time at Amazon: Warehouse workers get free subscription, raise