Amazon's UK Pay Raise Welcomed by Some, But Union Concerns Over Working Conditions Persist

Amazon.Com Inc AMZN prepared to increase the pay for its U.K. operations workers and hire an additional 15,000 staff to handle the expected surge in demand during the holiday season. 

The pay raise, effective from October 15, will benefit frontline workers, including those in part-time, temporary, seasonal, and full-time roles, elevating their hourly wages to between £11.80 and £12.50. 

Amazon plans another pay hike by April 2024, raising the hourly rate between £12.30 and £13. 

This initiative represents a £170 million investment in worker pay, marking a 20% increase in two years and a 50% rise since 2018, CNBC reports.

Also Read: British Regulator Ofcom Calls For Antitrust Probe Into Amazon and Microsoft's Cloud Dominance

John Boumphrey, Amazon's U.K. country manager, expressed pride in offering competitive wages and benefits in a safe, modern work environment, attributing these factors to the company's appeal as an employer. 

However, the GMB Union criticized the pay increase, citing ongoing issues with low pay, unsafe working conditions, and workplace surveillance. 

The union has been pushing for better pay and conditions, and workers at Amazon's Coventry fulfillment centers staged a legally mandated walkout earlier in the year, seeking formal union recognition to bargain over wages and conditions collectively.

This development in the U.K. mirrors Amazon's move to the U.S., aiming to hire 250,000 additional workers for the holiday season. 

Despite the company's efforts to improve worker pay and conditions, unionization efforts continue, highlighting ongoing tensions between the e-commerce giant and its workforce.

Price Action: AMZN shares traded lower by 0.86% at $126.85 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.