Amazon has announced that starting early next year, it will be offering Prime memberships as part of the benefits package for hourly employees in its fulfillment and transportation network. The updated pay and benefits package will include a $1.50/hour increase in average base pay, bringing it to over $22/hour. This move is seen as a way to align the interests of Amazon’s workers with those of its customers, effectively making everyone a member of the same club. While Prime membership is not the most significant component of the compensation package, it serves as a symbolic gesture.
The union movement has also been gaining momentum within Amazon, with the Amazon Labor Union achieving a historic victory at a Staten Island warehouse in New York in 2022. The International Brotherhood of Teamsters has also been involved in organizing efforts for Amazon workers. The addition of Prime benefits is seen as a step in the right direction in terms of improving worker satisfaction and loyalty, and generating goodwill among the workforce. By including Prime in the benefits package, Amazon is hoping to create goodwill ambassadors for the company among its employees.
While the Prime membership perk will kick in after 90 days of employment, it will not be available to delivery drivers who work for independent Amazon Delivery Service Partner (DSP) companies, or to salaried corporate and tech employees, as well as employees from other Amazon-owned companies like Whole Foods, Zoox, One Medical, and Zappos. However, Amazon may consider extending Prime benefits to more employees in the future. The exact number of hourly workers who will receive Prime benefits is not yet clear, but Amazon has approximately 800,000 hourly workers in its U.S. fulfillment and delivery network.
In the past, other big retailers like Costco have offered free executive memberships to employees, allowing them to extend memberships to family and friends. Offering Prime benefits to hourly employees is seen as a strategic move to improve worker satisfaction, align their interests with customers, and generate goodwill within the workforce. This move has been recommended by logistics industry veteran Gisela Hausmann, who suggested that offering free Prime memberships could help Amazon become “Earth’s Best Employer”.
The Prime benefit will be available to all U.S. full-time, part-time, and reduced-time hourly employees in Tiers 1-3, as well as Level 4 hourly managerial roles. This move is meant to recognize the significant role that front-line workers play in bringing the magic of Prime to customers. While Prime membership includes free delivery, Amazon Music, and Prime Video, its inclusion in the benefits package is seen as a significant step in improving worker satisfaction and loyalty. Amazon’s move to offer Prime benefits to hourly employees is also in line with its quest to become a more employee-friendly company and generate positive word of mouth among its workforce.
Overall, Amazon’s decision to include Prime memberships in the benefits package for hourly employees is a strategic move to improve worker satisfaction, align their interests with customers, and generate goodwill within the workforce. While not the most significant component of the compensation package, Prime membership serves as a symbolic gesture and is intended to create goodwill ambassadors for the company. The move comes in the wake of increased union activity within Amazon and is seen as a step towards improving worker loyalty and advocacy for the company. Amazon may consider extending Prime benefits to more employees in the future, further solidifying its position as an employer of choice.
