Amazon just announced it raised the minimum wage for its hourly employees to $15 yesterday. However, the raise came at the cost of eliminating monthly bonuses and stock options. The Verge reported that Amazon said that employees preferred the immediacy of cash to restricted stock units.
Amazon warehouse workers have criticized the decision, saying they are losing thousands in incentive pay. Warehouse employees are currently entitled to two shares of Amazon stock when they are hired, and an additional stock option each year. The company made the announcement in a blog post.
The current stock offerings will be replaced with a direct stock purchase plan by the end of next year.
Amazon's original benefits helped its employees
Amazon warehouse workers have said that many depend on the monthly bonuses and other incentives. Amazon workers could see an 8 percent monthly bonus and even a 16 percent bonus during the November and December busy seasons.
Senator Bernie Sanders praised the minimum wage raise, but workers have responded saying that most workers will have their paychecks cut, not raised. Certain warehouse workers have called the pay raise a publicity stunt as well as a political maneuver. Amazon has routinely been criticized for its poor working conditions and low wages.
This is what the political revolution is all about: today 350,000 Amazon workers found out they are getting a raise to at least $15 an hour. pic.twitter.com/RbEojpc9X0
— Bernie Sanders (@SenSanders) October 2, 2018
Amazon continues to claim that employees are getting a pay increase
Amazon spokesperson told CNBC in an email that all hourly employees will see an increase in their total pay as a result of the wage increase.
The pay will be more immediate. According to Amazon, employees will have the chance to look over the updated pay structures and share any concerns they might have with the company.
The increased wage will apply to over 250,000 Amazon employees, including Whole Foods staff and more than 100,000 seasonal employees, they are planning to hire for the holiday season.
Amazon's Jeff Bezos said that he listened to his critics and came to this decision. As part of this wage increase, SVP of Amazon global corporate affairs Jay Carney said that the company is working to get Congressional support for an increase in the federal minimum wage. Carney believes that a wage increase will have a profound impact on the lives of millions of people and families across the nation.
Amazon is the latest company to raise its minimum wage. Costco now pays $14 an hour, Starbucks raised wages, while also offering stock grants and other benefits. Walmart now offers an $11 minimum wage and a one-time bonus to workers. Amazon continues to believe they are doing the right thing, while others are not so sure.
