Amazon Sets $500 Million For Front-Line Bonuses -- WSJ

By Micah Maidenberg 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (June 30, 2020).

Amazon.com Inc. said it would spend more than $500 million on bonuses for employees and some contractors, following months of strong demand from consumers stuck at home during coronavirus lockdowns and pressure on workers handling the jump in orders.

Amazon will pay one-time bonuses for all front-line workers and partners with the company throughout June, said Dave Clark, senior vice president of world-wide operations, in a Monday blog post. The payout comes after the company decided last month to end a short-term pay bump for employees, including those in warehouses fulfilling customer orders.

Full-time employees at Amazon, its Whole Foods Market business and drivers in its contracted delivery program will receive $500, while those in part-time positions will receive $250, Mr. Clark said. Another group of drivers will get $150.

Leaders at Amazon and Whole Foods will receive a $1,000 bonus, and owners running contracted delivery-service operations will get $3,000.

In March, the Seattle e-commerce giant said it would boost pay by $2 an hour for front-line workers and add thousands of new employees.

Amazon said in April it expected to spend around $4 billion on coronavirus-related expenses, including employee testing and increased wages.

The company offered the increased hourly wage through the end of last month. As of May 30, Amazon had paid out nearly $800 million in higher pay, a spokeswoman said.

Sales at Amazon have shot up during the pandemic, with consumers turning to e-commerce as many retailers closed stores or limited shopping hours to comply with restrictions aimed at halting the spread of the coronavirus.

Some employees launched protests at job sites over working conditions at Amazon facilities.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

June 30, 2020 02:47 ET (06:47 GMT)

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