Amazon increases minimum hourly wage for UK workers by 50 pence

Amazon.com Inc (AMZN) on Wednesday increased the minimum starting wage for its UK employees by up to 50 pence to between GBP 11 and GBP 12 per hour.

Yet, the move has faced discontent from the company’s union.

The raise came after a pay-related worker walkout at an Amazon warehouse in Coventry less than a week ago.

“We’re listening to Amazon workers and the message is very clear: this new pay rate is an insult,” Amanda Gearing, senior organiser of GMB, the union representing over 500 Amazon workers, was quoted as saying by Reuters.

“So, in response we will be consulting over the next few days and announcing a new wave of action.”

According to GMB, the Amazon Coventry workers are seeking a pay of GBP 15 per hour in order to deal with higher cost of living.

The new pay raise, which will come into effect in April, follows another hourly wage increase in the country last year, by 50 pence to between GBP 10.50 and GBP 11.45.

The shares of Amazon.com Inc (AMZN) closed 1.90% ($1.91) lower at $98.70 on Nasdaq on Wednesday, with the company’s total market cap now standing at $1.011 trillion.

The shares of Amazon.com Inc retreated 49.62% in 2022, compared with a 19.44% loss for the benchmark index, S&P 500 (SPX).

The e-commerce giant’s shares have risen 17.50% so far this year.