Amazon invests $1 billion in transportation and fulfillment workers

Amazon is investing more than $1 billion in the wages and benefits of transportation and fulfillment employees.

The e-commerce giant said it’s increasing average pay to more than $23 per hour and average total compensation to $30 per hour with a new benefits package that includes a reduced-cost healthcare plan at $5 per week and $5 copays.

“A lot of the changes we’re sharing today are based on what our employees say matters to them, and they’re just one example of how we listen and respond to feedback,” Udit Madan, SVP of Amazon Worldwide Operations, wrote in a blog post.

Over the past three years, fulfillment and transportation workers have seen their pay increase 35% on average, per Amazon.

The company is offering lower healthcare costs on its entry-level plan and raising the annual progression of wage increase, known as a step plan, which means “the longer people stay, the more their pay increases year over year,” Madan wrote.

However, wages and benefits are not the only things that matter to workers: Sens. Elizabeth Warren and Josh Hawley last week sent a letter to Amazon founder Jeff Bezos expressing their concerns about the company’s scheduling practices.

The letter cited a “new Harvard study” finding that 41% of Amazon employees are notified about their schedule less than two weeks ahead of time. This practice is known as just-in-time scheduling, and the senators contend that is “unworkable” for employees trying to balance responsibilities outside of their job such as education and caregiving.

“Amazon is running its years-old playbook: squeezing workers while raking in sky-high profits. We’re fighting back to make sure Amazon’s employees are treated fairly, not thrown under the bus so Amazon and its wealthy executives can get even richer,” Warren wrote.Rachael Lighty, policy communications and economic impact public relations lead at Amazon, told The Washington Post (which Bezos owns) that the letter asserted inaccurate information, and that “the vast majority” of full- and part-time workers “have consistent schedules.”