Amazon boosts wages for hourly workers across the US

Amazon has announced that it’s spending nearly $1 billion boosting wages for hourly workers in the US amid criticism of its labor practices and a pitched union battle. The increase will take the starting wage for most front-line warehouse and transportation employees to over $19 per hour, while pay in fulfilment and elsewhere will rise to $16 an hour. The company’s minimum wage will remain at $15 per hour.

Amazon is also expanding its “Anytime Pay” program to all employees, allowing them to access up to 70 percent of their eligible pay at any time with no fee, rather than the usual once or twice a month. It also added a new development program that allows employees to advance to engineering roles after 12-14 months of training. 

Amazon is the second largest employer in the US after Walmart, with a total workforce of over 1.5 million. Most of those are hourly workers in warehouses or delivery, or retailer workers at Whole Foods and Amazon Fresh. The average hourly pay in the US is $32.36, according to the US Bureau of Labor Statistics, and $28.10 in the “transportation and warehousing” category.

In April this year, 8,000-plus workers at a Staten Island facility voted to unionize, and Amazon lost its initial appeal for a re-vote. It’s also facing a House committee probe into a deadly warehouse collapse that killed six workers during a tornado. Last June, the panel accused Amazon of “obstructing” the probe by refusing to hand over key documents related to an internal review. 

Lululemon to launch a subscription service that requires a Mirror home fitness device

On October 5th, Lululemon will launch a new membership service that requires a Mirror at-home fitness device. Lululemon Studio builds upon the 10,000 on-demand and livestream classes already accessible with a Mirror subscription. Members will get access to old online content from studio partners, can stream the new classes they release per week and can sign up for in-person classes at their brick-and-mortar locations at a discount. At the moment, the program lists eight partner studios, namely AARMY, Y7 Studio, DOGPOUND, FORWARD__Space, Pure Barre, Rumble, AKT and YogaSix. Members will also get discounts on Lululemon products and get early access to its events. 

As The New York Times notes, the new program is part of the company’s efforts to expand Mirror’s reach. Lululemon purchased interactive home gym startup Mirror for $500 million back in 2020 during the height of COVID-related lockdowns, when people had no choice but to work out at home. As restrictions eased, people started flocking to gyms again. At-home fitness companies the found their sales dwindling and the demand for their products to be much, much smaller than before. Peloton, for instance, suffered a massive loss worth $757.1 million in the first three months of 2022. Lululemon itself slashed its Mirror sales outlook for 2021 to between $125 and $130 million from $250 million and $275 million.

In an interview with The Times, Lululemon chief executive Calvin McDonald, said: “What we saw in terms of connected fitness was a shift in change coming out of the pandemic where guests were really asking and looking for the convenience and the ability to not just have a solution to work out at home. Profitability is within our control. We’re choosing to invest to grow the business.” McDonald didn’t say how many users Mirror has, but it has apparently brought in new customers to the brand. He also said that the company expects Mirror to account for 5 percent of its sales in the next five years. 

A Lululemon Studio membership will cost $39 a month, and all current Mirror subscription members will automatically become Studio members. Those who don’t have a Mirror yet will have to get one first. To lower the barrier of entry, Lululemon will cut Mirror’s price by almost 50 percent and will sell it for $795 (original price is $1,495) for a limited time starting on October 5th.