If you work for Amazon, there's a good chance you're waking up to some surprising and welcome news this morning. You're getting a pay rise!
Amazon today announced that over 250,000 of its employees along with an additional 100,000 or more seasonal workers will see their pay increased to $15 per hour from Nov. 1. The change applies to all "full-time, part-time, temporary (including those hired by agencies), and seasonal employees" who are based in the US. That also extends to all Amazon subsidiaries such as Whole Foods.
The hourly rate increase has no impact on the benefits Amazon already offers workers. They include healthcare provision, 20 weeks of paid parental leave, 401k matching, and Career Choice/Career Skills training support.
Amazon confirmed that it is phasing out its incentive pay component, replacing it with the $15 per hour minimum and no targets attached. The RSU grant program for stock is also being phased out and replaced with a direct stock purchase plan before the end of 2019 to make for a more predictable income system for employees.
Alongside increasing the minimum wage for its own employees, Amazon is pledging to work with policymakers in Washington D.C. to raise the federal minimum wage. Jay Carney, Senior Vice President of Amazon Global Corporate Affairs, explained "We will be working to gain Congressional support for an increase in the federal minimum wage. The current rate of $7.25 was set nearly a decade ago ... We intend to advocate for a minimum wage increase that will have a profound impact on the lives of tens of millions of people and families across this country."
With the major holiday season fast approaching, Amazon's minimum wage increase will certainly help it to fill all seasonal work positions very quickly. It should also put the pressure on other retailers to at least match Amazon's minimum wage pledge if they aren't doing so already.
While many will welcome the pay boost, others will be quick to say "is that all?" Earlier this year Amazon CEO Jeff Bezos attained a net worth of $150 billion. He also recently started a $2 billion fund to help homeless families and schools. Bezos and his company certainly aren't short of money, and yet this positive PR move today is set against a backdrop of complaints about poor working conditions, worker strikes, and "Amazon FC Ambassadors" defending the company on Twitter. We also can't forget this is the same company that wants to put workers in cages and is working hard to have drones instead of humans making deliveries.