Amazon Slips on Pay Hikes and New Benefits for US Workforce
Amazon's stock price slipped 0.24% on Wednesday, following news that the company is raising its minimum starting pay for full-time U.S. operations workers to $20 an hour.
The increase brings the average wage close to $24 and total compensation above $32 once benefits are included. This represents a 17% hike in starting pay over the past three years, with employees continuing to see annual raises through their first three years on the job.
Amazon also announced the launch of Day 1 Financial, a lifetime banking benefit that offers checking and savings accounts with no overdraft charges or monthly fees. This service is available through First Tech Federal Credit Union and connects to thousands of ATMs nationwide, refunding outside-network ATM charges up to $300 annually.
Additionally, Amazon plans to lower grocery prices for its workforce by 10% starting October 1, with no cap on eligible items purchased online or in Whole Foods stores. Prices will be reduced by 20% on items bought physically inside Whole Foods locations.