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

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.