Will Many Amazon Workers Not Receive Minimum Wage Increases?
Will Many Amazon Workers Not Receive Minimum Wage Increases?
Amazon employee readies a mail order item for shipment during Christmas season December 2017
09 October, 2018, 14:20
It is nearly $3 shy of the average for a non-management worker in warehousing in the United States.
"We listened to our critics, thought hard about what we wanted to do, and decided we want to lead", founder and Chief Executive said in a statement.
Though factory employment rarely means a soaring income, critics were shocked that a large proportion of Amazon's 500,000 employees - most of which make up the backbone of the company - were earning poverty-level salaries.
What is certain, however, is the competition that has now been created within the retail world, which largely depends on the relatively cheap labour of sorting hub staff, who are now paid considerably less than Amazon workers on average.
This announcement was disclosed by Amazon this Tuesday and the announcement contained that stock awards program is going to be replaced with the least wages pattern because employees usually prefer immediate and predictable cash as compared with the monthly or annually stock awards. The company informed those employees Wednesday that it's eliminating both of those compensation categories to help pay for the raises, the people said. The employees, all of whom work in different warehouses around the country, said the $15 minimum wage was great for new workers, but the math didn't work out for those who have worked at Amazon's warehouses for a few years.
"You've got a company that can't attract and keep labor because their wage rates are at the bottom of the pay scale, generally speaking", said Marc Wulfraat, president of logistics consultancy MWPVL International, which closely tracks Amazon's fulfillment operation.
The move comes after months of criticism and damning media reports that described harsh working conditions in Amazon warehouses.
"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.
The company announced Tuesday that it will raise its minimum wage to $15 an hour for all USA employees. Will the company require this wage minimum for those workers, too?
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. Economists said the move could put pressure on other large employers to raise wages.
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