Amazon has raised its minimum wage for workers in the UK and US amid growing criticism over the company’s treatment of staff.

More than 17,000 Amazon employees, along with more than 20,000 seasonal holiday employees and their families, will benefit from the pay increase. UK workers will receive an increase to £10.50 per hour in London and £9.50 across the rest of the UK.

The pay rise, which comes into effect on 1st November, means that Amazon workers will earn nearly 21% more than the current UK minimum wage (£7.83). Employees will also earn more than the recommended living wage of £8.75 (£10.20 in London).

“We’re excited to announce Amazon is raising our minimum wage for all full-time, part-time, seasonal and temporary UK employees — effective 1st November,” said Doug Gurr, Amazon VP and UK country manager. “This will impact more than 37,000 employees across the country, resulting in higher pay for them and their families.”

Leading the Way

Jeff Bezos, founder of the e-commerce giant, said the company had “listened to our critics, thought hard about what we wanted to do, and decided we wanted to lead.”

He added: “We’re excited about this change and encourage our competitors and other large employers to join us.”

Bezos has been subject to intense criticism in 2018. He has not only achieved the mantle as the richest man in modern history but has led the company to become the second trillion dollar-valued company.

In December 2016, Amazon was accused of creating “intolerable working conditions” at its Dunfermline warehouse amid allegations that workers were penalised for sick days. Photographs published by the Courier newspaper showed employees living in tents near the site.

The company has a number of sites in Scotland, including three fulfilment and warehouse sites located in Dunfermline, Bathgate and Gourock. Edinburgh is home to two sites – a customer service centre and a software development lab.

Championing Fair Work

Jamie Hepburn, Minister for Business, Fair Work and Skills, welcomed the decision to increase wages, stating: “I welcome this announcement from Amazon and would ask other employers to consider the wider benefits of treating their workers fairly.

“The Scottish Government has long championed Fair Work. We firmly believe that all workers should get a fair day’s pay for a fair day’s work.”

In September, First Minister Nicola Sturgeon revoked multi-million-pound grants for Amazon until they improve wages for Scottish workers.

Scottish Ministers had met with Amazon representatives on a number of occasions. However, efforts to force the company to introduce a living wage failed. The company has received more than £3.5 million in taxpayer-funded Regional Selective Assistance (RSA) grants since 2007.

Scottish Enterprise proposed new rules to prevent companies from receiving grants if they fail to pay the living wage and adopt “fair work” practices laid out by the Scottish Government.

The organisation said: “We can confirm that from the next financial year, we will be introducing new criteria for our job creation grants as set out in the Programme for Government.”