Amazon Raises Wages But Cuts Other Major Perks For Many Hourly Employees
Amazon is trying to make itself more appealing to potential workers by increasing its minimum wage to $15 an hour but cutting incentive pay and stock awards.
The higher minimum wage will go into effect Nov. 1 for more than 350,000 full-time and seasonal Amazon employees, according to a press release from the company Tuesday.
The wage increase appeals to workers who want the “predictability and immediacy of cash,” the press release stated.
Current Amazon warehouse workers earn an Amazon share worth nearly $2,000 every year’s end and have other opportunities to earn shares, reported CNBC. The stock awards will disappear, Amazon told workers Wednesday according to CNBC.
“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,” Amazon told CNBC in an email. “In addition, because it’s no longer incentive-based, the compensation will be more immediate and predictable.”
Amazon also vowed to “begin advocating for an increase in the federal minimum wage” in the press release Tuesday. (RELATED: Americans Are Three For Three In 2018 Nobel Science Prizes)
Amazon joins a laundry list of companies like Kohl’s, J.C. Penney and Target that are trying to sweeten the hourly positions they need to fill ahead of the holiday season. Ironically, many of these businesses are trying to lure online shoppers away from Amazon and into their stores.
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