[H]ardOCP: Amazon Workers Lose Monthly Bonuses, Stock Awards as Minimum Wage Increases

Will Many Amazon Workers Not Receive Minimum Wage Increases?

"Amazon's decision might matter because it expands on state initiatives to increase minimum wage in the face of a strong labor market, rising inequality and the declining real federal minimum wage. Amazon can afford to make all workers whole and should do that". "We listened to our critics, thought hard about what we wanted to do, and decided we want to lead", he said in a statement. There were a lot of reports on Wednesday as the confirmation of this notification and those reports were from the warehouse employees of Amazon containing that they are going to put in less efforts as a result of this change in pay schedule.

Christine Owens, executive director at advocacy group National Employment Law Project, said Amazon's call for changes at the federal level was a "significant" move.

He added that Costco's average USA hourly wage is roughly $22.50, "which we believe dwarfs any other retail or retail-type entity out there on a base scale".

Over 250,000 employees will benefit from the salary boost, as well as around 100,000 seasonal employees, whose numbers have recently been cut from 120,000. The company didn't mention anything about the monthly bonuses to the employees. Analysts said the raise would cost it $1 billion or less annually but would be offset by a recent $20 increase in the cost of its Prime memberships.

Sanders' spokesman Josh Miller-Lewis said that while the senator applauded the wage increases, he's still waiting to see how it rolls out and affects workers.

"This is Amazon waking up and smelling the coffee".

In a surprise move, Amazon announced this week that it will raise its internal minimum wage to $15 an hour for all employees, including part-time and seasonal workers.

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The company's shares closed down 1.6 percent at $1,971.31 on Tuesday.

Public outrage at the irony of the situation sparked a political reaction from the likes of US senator Bernie Sanders, who introduced the "Stop Bad Employers by Zeroing Out Subsidies Act, ' a bill using the acronym of Amazon's CEO Jeff Bezos" surname.

That has included several fatalities, including one in 2013 when a conveyor system crushed a temporary worker in a New Jersey warehouse, according to the US Occupational Safety and Health Administration (OSHA). What policy does Amazon have for the pay and benefits of contractors?

"With the Trump administration having previously taken aim at Bezos and Amazon, they need to be proactive to position themselves positively in the court of public opinion", said Tom Gimble, CEO of recruiting firm LaSalle Network.

Further controversy emerged following a comparison of Bezos' wage versus that of his lowest-paid staff, with some estimates calculating that Bezos earned the annual salary of his company's lowest earners every 11.5 seconds.

Amazon does the just thing by raising minimum wage to $15.

The pay rise comes after an nearly 10-year wage freeze during which salaries for workers based in factories, sorting hubs and logistics warehouses remained at the minimum.

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