Amazon Wage Increase Includes Removal Of Stock Options, Bonuses

Daniel Fowler
October 7, 2018

However, given that Amazon CEO Jeff Bezos is the richest man in the modern history and Amazon's market value hovers around $1 trillion, critics argue the company could increase wages while keeping a bonus structure in place.

Amazon's current hourly wages vary.

While restaurants are facing pressure to raise wages across the USA, they're also dealing with a tight labor market that's forcing companies and franchisees to hike pay to find enough hourly employees.

The bonuses paid workers extra based on their attendance and warehouse productivity, while its restricted stock unit program gave shares to workers if they stayed with Amazon for a certain amount of years.

Amazon's new hourly minimum pay rate is set to go into effect on November 1, and will apply to 350,000 full-time, part-time and temporary workers.

Workers in stores already tend to make less than workers in distribution warehouses on average. Workers in different parts of the world went on strike during the company's Prime Day promotion over the summer. Sen. Amazon says it will replace it with a program next year that will allow workers to buy stock, but didn't provide details. Approximately 17,000 workers in the United Kingdom are also expected to receive salary increases.

India, Russia forge S-400 missile deal; ignore U.S. threat
The South China Morning Post (SCMP ) also noted that the India-Russia agreement had raised eyebrows in both the United States and China.

In the U.S., the minimum wage at federal level is 7.25 dollars per hour, although local legislation in some states sets a higher level, for example in California where it is 10.50$ per hour, or in Florida 8.25$ per hour.

While the EPI acknowledges that real firms could "respond to higher minimum wages in ways that cause divergent effects", it says "what is not in dispute" is that "rising minimum wage has depressed employment opportunities in the most heavily impacted industries".

A higher federal minimum wage could intensify pressures on smaller businesses that don't have the financial resources that Amazon has to raise pay significantly. By those estimates, the EPI projects that the pending $15 minimum wage hike would cost California 400,000 private-sector jobs, with heavy losses in both the food service and retail sectors. Galanti also emphasised that the retailer offers significant raises to employees every year, something many retail rivals do not do. Once they start to raise pay in response to competitive forces, they typically lobby to push others to follow suit, to prevent other companies from undercutting them.

But not everyone is necessarily happy about the increase in their pay. This change will Benefit the 37,000 current and seasonal workers, according to data from the USA company.

"I have zero doubt that other major corporations will follow suit", Sanders said in an interview with Bloomberg News on Tuesday.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER