Amazon's Wage Haul Sparks Concern for Retail Industry
Amazon's Wage Haul Sparks Concern for Retail Industry
Everything you need to know about Amazon’s $15 min. wage and the new app backed by Bill Gates
09 October, 2018, 14:19
Amazon's decision to raise the minimum wage for employees to $15 is an admirable step toward addressing America's wealth gap.
"The significant increase in hourly cash wages more than compensates for the phase-out of incentive pay and RSUs [restricted stock units]", a spokesperson said.
Target Corp raised its minimum hourly wage last year to $11 and promised to raise it to $15 an hour by the end of 2020, while the world's largest retailer Walmart raised its minimum wage to $11 an hour earlier this year, even as both struggled with high transportation and raw material costs. He said that they can confirm all the hourly customer service employees and operations will have an increase in their total compensation once after this announcement has been made.
Amazon said in a statement that the changes mean "compensation will be more immediate and predictable". If the number of workers is small or wages being taken back in lower benefits, Amazon's decision is no big deal.
Warehouse workers for the e-commerce giant in the USA were eligible in the past for monthly bonuses that could total hundreds of dollars per month as well as stock awards, said two people familiar with Amazon's pay policies. But she earned an extra $400 a month in October, November and December, during the busy holiday shopping season when Amazon doubles the bonuses to motivate workers to show up on time and churn out packages quicker.
Amazon said its stock program, which typically gave workers one or two Amazon shares when they first started and then one a year, will be replaced with a method for workers to buy stock next year, but the company didn't provide details. It is nearly $3 shy of the average for a non-management worker in warehousing in the United States. He said Amazon needs to communicate to workers better if overall compensation is higher "or you're going to have morale problems".
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