Retail

Amazon slams Walmart for not paying workers $15 per hour, following new criticism of the e-commerce giant's treatment of workers

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A Walmart personal shopper. Walmart
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Amazon took a dig at Walmart's worker pay in a recent Bloomberg article. 

In analysis of 68 counties where Amazon opened warehouses, average industry compensation dropped by 6% within two years, Bloomberg reported. Average wages increased five years after Amazon arrived in the areas.

In response to the article, Amazon questioned why the report did not explore wages at Walmart, the US's largest retailer.

"Hiring more, by paying less, simply does not work. Many of our employees join Amazon from other jobs in retail which tend to be predominantly part-time, reduced benefit jobs with substantially less than our $15 minimum wage," Amazon said in a statement to Bloomberg. "These employees see a big increase in pay per hour, total take-home pay, and overall benefits versus their previous jobs. What surprises us is that we are the focus of a story like this when some of the country's largest employers, including the largest retailer, have yet to join us in raising the minimum wage to $15."

Read more: Amazon is quietly building a business to offer medical care to major companies. Here's an inside look at Amazon Care.

Walmart and Amazon did not immediately respond to Business Insider's requests for comment.

Competition between the two retail giants has increased in recent years as they compete for workers. Amazon raised its minimum wages to $15 an hour in 2018 after criticism from labor advocates, including Sen. Bernie Sanders. Walmart raised its minimum hourly wage to $11 from $9 in 2018 but said full-time hourly workers averaged $14.26 an hour.

"We think better than focusing only on what's that lowest starting wage, it's better to talk about ... What's the average wage?" Kathleen McLaughlin, Walmart's chief sustainability officer, told Business Insider in 2019.

Amazon tripled profits to $6.33 billion this year as the COVID-19 pandemic prompted an e-commerce boom. CEO Jeff Bezos added more than $70 billion to his net worth, according to a report from the Institute for Policy Studies

The company in March increased pay for warehouse workers by $2 an hour as hazard pay. Amazon ended the benefit in June and has not reinstated hazard pay, despite COVID-19 cases and hospitalizations reaching a record high this winter.

Read more: Amazon employees have started an 'Anti-Surveillance' petition to stop the company's union-busting and labor-monitoring efforts: 'Stop spying on us'

Warehouse workers have gone on strike and sued the company during the pandemic, alleging Amazon did not protect them enough from COVID-19. Amazon said more than 19,000 workers tested positive for COVID-19 between March 1 and September 19.

Walmart said revenue increased by 5.2% since last year because of increased sales. Online sales surged by 79% for the retailer and 41% at the Walmart-owned Sam's Club. Walmart announced in December that frontline workers would get $300 million in bonuses and extended benefits for paid time off because of COVID-19.

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Allana Akhtar was a senior health reporter for Insider, where she covers the emerging wellness industry and general health topics. During the COVID-19 pandemic, Allana wrote extensively about nurses, mask mandates, the vaccine rollout, and disparities in access to health. Her articles include features on nurses needing to re-use PPE in the early days of the pandemic, ones who struggled to get paid time off after getting COVID-19, and those who left bedside care after grueling pandemic working conditions. Allana also spoke to flight attendants and retail workers who faced violence as they enforced mask mandates, and community health workers who said they struggled to receive equitable vaccine access during the initial rollout. Allana now reports on emerging trends within the wellness industry, including the Westernization of indigenous medicine and dangerous wellness trends spread through social media. She also writes about plastic surgery, racial disparities in healthcare, and breaking health news. Allana has won numerous awards for her work, including the Best News Story by the Michigan Press Association in 2015, Best Reporter Covering Nurses in 2019, and the Morris and Lola Wasserstein Award for her contribution to the the University of Michigan's student paper as an Honors student. Before Insider, Allana wrote for USA TODAY, US News & World Report, Money Magazine, Health Magazine, Jalopnik, and more. You can email her at aakhtar@bjinnox.com, call/text her at (646) 376-6058, or follow her on Instagram, TikTok, Twitter, and LinkedIn. Secure tips line: Signal # 248 760 0208'We're grossly unprepared': Nurses share their frustration as the coronavirus spreads with little direction from the government or hospitals on how to mitigate it'Sexy nurse' costumes demean one of the most in-demand professions in American life — and they're a bestseller on Amazon right nowFlight attendants describe 'unprecedented' violence as travel returns and passenger aggression soarsG/O Media fired a queer employee of color who wore crop tops, shorts, and heels to work, violating a brand-new dress code that others say they routinely violated without being punishedContractors at controversial startup Rev say they worked long hours for little pay, feared they could lose their job at any time, and had to transcribe interviews with sexual-abuse survivors without warning