Amazon’s minimum wage hike will deprive workers of bonuses and stock awards

October 8, 2018

Amazon announced on October 2 that it would increase the minimum wage of its full-time, part-time, temporary, and seasonal workers nationwide to $15 an hour starting November 1.

The new Amazon$15 minimum wage will benefit more than 250,000 Amazon employees, as well as over 100,000 seasonal employees who will be hired at Amazon warehouse sites across the country to ship holiday purchases.

However, It appears the changes came with a caveat: Bloomberg  reported on October 3 that, even as its workers enjoy higher salaries, Amazon will remove their bonuses and stock awards.

In other words, the Internet giant will balance the scales—and fund its new largess—by eliminating other monetary perks. Bloomberg, which spoke with two unnamed sources at Amazon, noted that, in past years, the company’s workers have seen bonuses that amounted to hundreds of dollars.

Still, the company says it’s not all a wash. In a statement, Amazon told Bloomberg that the workers still will see their overall compensation increase, despite losing bonuses.

“In addition, because it’s no longer incentive-based, the compensation will be more immediate and predictable,” Amazon said, according to the business news outlet.

But Amazon easily could have afforded to both pay its workers and provide incentives.

Over the past few years, workers have intense pressure to produce, especially at the online retailer’s warehouses. “It is modern slavery,” a worker told Business Insider last May. “Jeff Bezos has become the richest man in the world off the backs of people so desperate for work that we tolerate the abuse.”

Research contact: nsmith150@bloomberg.netnimu

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