Amazon this week increased its minimum wage in the U.S. to $15 an hour from $11, more than double the federal minimum wage of $7.25 and ahead of wages paid by retail giants Walmart and Target. But some longtime employees say they are losing out.
But some workers say they will now make less money. After the new changes, the restricted stock units (RSU) program will be phased out for stocks that become vested in 2020 and 2021, and will be replaced with a direct stock purchase plan by the end of 2019.
When Amazon announced their wage increases yesterday they said nothing about cutting staff benefits.
Currently, warehouse workers in the US, are eligible 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. "The ones who are loyal should be rewarded for loyalty, not smacked in the face".
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On Tuesday, Amazon announced plans to raise minimum wage to $US15 per hour, following Costco raising its minimum wage to $US14 earlier this year. Economists said the move could put pressure on other large employers to raise wages.
"We can confirm that all hourly Operations and Customer Service employees will see an increase in their total compensation as a result of this announcement", an Amazon spokesperson told NBC News, further stating that the wage increase will "more than compensate" for the change in employee benefits.
"The significant increase in hourly cash wages more than compensates for the phase out of incentive pay and RSUs". Would you prefer a higher wage or bonuses and stock options? The VCP incentives, which is depends on performance, could get Amazon workers an eight percent monthly bonus, and a 16 percent bonus during the holiday seasons in November and December. Workers in different parts of the world went on strike during the company's Prime Day promotion over the summer. Sen. It was theoretically a smaller cost for Amazon to bump its workers up to $15 than it would be for Walmart to bump all of its store employees up to $15. But McDonald's recently has said this isn't true, with more workers actually required. He said Amazon needs to communicate to workers better if overall compensation is higher "or you're going to have morale problems". Bernie Sanders' office, who had been critical of Amazon's CEO Jeff Bezos for paying what he described as low wages but praised the company when it raised the hourly minimum wage.
"A higher minimum wage induces some automation, as well as increased worker productivity and slightly higher prices; these are the negative effects. Amazon can afford to make all workers whole and should do that".