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Amazon Paying More Than $500 Million to Front Line Employees

By Rhian Hunt – Jun 29, 2020 at 12:45PM

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The individual bonuses range from $150 to $3,000 according to the company.

E-commerce giant Amazon (AMZN -0.45%) says workers who put in time in June, whether on a part-time or full-time basis, will share in a total payout of approximately half a billion dollars in "thank you" bonuses. Only those employees who worked throughout the entire month will qualify, but the number eligible still runs into hundreds of thousands of individuals.

The smallest bonuses, $150, go to "Amazon Flex drivers" who clocked a minimum of 10 hours during the month, and go up from there. Part-time Delivery Service Partner drivers and part-time workers will get $250 apiece, while full-time workers and drivers will pocket $500. Those in leadership will get more, with $1,000 in bonuses going to front-line leaders at Whole Foods and Amazon, and $3,000 to Delivery Service Partner owners.

Bonus envelope.

Image source: Getty Images

SVP Dave Clark said the company's "front-line operations teams have been on an incredible journey over the last few months, and we want to show our appreciation with a special one-time Thank You bonus." https://blog.aboutamazon.com/operations/a-thank-you-bonus-for-amazon-front-line-employees-and-partners

Amazon has benefited this year from the explosive +18% growth in e-commerce sales overall, capturing much of the online windfall from the COVID-19 outbreak. The enormous Web-based retailer managed to dominate the U.S. e-commerce scene in May, taking 38% of all online sales and coming in far ahead of Walmart, which accounted for just under 6% of e-commerce, or less than one sixth of Amazon's haul.

Earlier, Amazon paid $2 per hour extra to its workers during the first months of the coronavirus pandemic, ending the hazard pay by the beginning of June. 

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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