Amazon spends $1 billion to increase pay and lower health care costs for US workers

Amazon says it’s making a $1 billion investment to raise wages and lower the cost of health care plans for its U.S. fulfillment and transportation workers

NEW YORK -- Amazon says it's making a $1 billion investment to raise wages and lower the cost of health care plans for its U.S. fulfillment and transportation workers.

The Seattle-based company said Wednesday the average pay is increasing to more than $23 per hour and said that some of its most tenured employees will see an increase between $1.10 and $1.90 per hour. Full-time employees, on average, will see their pay increase by $1,600 per year.

Amazon also said it was lowering the cost of its entry health care plan to $5 per week and $5 for co-pays, starting next year. Amazon said that will reduce weekly contributions by 34% and co-pays by 87% for primary care, mental health and most non-specialist visits for employees using the basic plan.

Amazon has a global workforce of 1.5 million workers.

Last December, seven Amazon facilities went on strike, an effort by the Teamsters union to pressure the e-commerce company for a labor agreement during a key shopping period.

That same month, Amazon reached a settlement with the Occupational Safety and Health Administration that requires the online behemoth to adopt corporatewide ergonomic measures at facilities across the country. The agency claimed hazardous working conditions led to serious lower back and other musculoskeletal disorders at Amazon facilities.