Amazon increases labor costs by $1 billion a year

Amazon.com Inc. has reported an hourly workers wage increase in the United States. According to the company’ statement, it will increase the average starting wage to more than $19 an hour for most employees working in warehouses and transportation.

The current minimum wage for all hourly workers remains unchanged at $15 an hour. A company spokesperson said in an e-mail Wednesday that workers in Amazon's customer fulfillment and transportation divisions would have their wages increased to $16 an hour.

Company headquartered in Seattle also said that with the wage increase, Amazon will incur nearly $1 billion in additional costs next year. The company is now the second-largest private employer in the United States, behind only Walmart Inc., with more than 1.1 million people employed by Amazon at the end of last year. In total, the company has more than 1.5 million employees as of June 30, most of them hourly. They engage in packing and shipping of items or work in retail stores such as Whole Foods Market and Amazon Fresh.

The statement also said more workers will have access to a program allowing employees to get their salary more often than once or twice a month.