Amazon is spending roughly $1 billion on the pay hikes over the next year as it looks to attract and retain employees in a historically tight labor market. It's also preparing to enter what's known as"peak" season, the especially busy shopping period tied to the holidays.
Tensions have been growing between Amazon and its front-line workforce, particularly during the Covid-19 pandemic. Employees have called for wage increases, more paid time off and adjustments to productivity expectations. Workers at several Amazon facilities have taken steps to organize, and earlier this year, workers at Amazon's warehouse in Staten Island, New York, successfully voted to form the company's first U.S. union. Amazon faces another union election at a site near Albany, New York, next month.
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