Amazon’s just announced minimum wage increase for its hourly workers comes with a trade-off: no more monthly bonuses and annual stock awards, Amazon confirmed in an email to CNBC. The company is getting rid of incentive pay and stock option awards as it increases the minimum wage to $15 per hour; however, the company stressed that the wage increase “more than compensates” for the loss in other benefits.
“The significant increase in hourly cash wages more than compensates for the phase-out of incentive pay and [restrictive stock units],” Amazon’s spokesperson said in an emailed statement. “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. In addition, because it’s no longer incentive-based, the compensation will be more immediate and predictable.”
Additionally, workers affected by the change will get a chance to review the new pay structures and share any concerns they might have with the company, according to a person familiar with the matter.
The confirmation follows multiple reports on Wednesday that some of Amazon’s warehouse employees say they will make less as a result of this change. The Guardian said warehouse workers currently receive one Amazon share (worth $1,959) at the end of every year, on top of another single share reward every five years. Yahoo News noted that warehouse workers can earn up to 8 percent of their monthly income every month, which could be as much as $3,000 a year for some workers. Workers were notified of the change on Wednesday, according to Bloomberg.
Amazon disclosed in its announcement on Tuesday that it is replacing the stock awards program with the minimum wage increase because employees prefer the “predictability and immediacy of cash” compared with stock awards. The company didn’t say anything about the monthly bonuses.
The announcement served as a good publicity event for Amazon, which has recently been criticized for the low wages and poor working conditions at its warehouses. Two of Amazon’s biggest critics, Sen. Bernie Sanders and the Trump White House, both applauded the move on Tuesday.
It is easy to bash someone when you have not experienced working for his company. I have worked for the Amazon camperforce program during the last seven years. It is hard work but I have been rewarded fairly every year and this year I am being rewarded again. I suggest you negative people sign up and experience working for Amazon before you talk negative about something you know nothing about. Tell me another employer that will pay me $16.75 an hour and my rent and utilities, then maybe I would consider trying another job during the fall
Unreal … after Bezos announces the new wage and takes massive credit and accolades for being generous and employee-minded …. he waits 2 days and quietly lets it be known that he is nothing more than a profit oriented scumbag !!
This is a stab in the back to every employee who goes the extra mile for their employer and enjoys a small bonus for their effort. Now EVERY employee, valuable or useless, shares the value of the bonuses and stocks.
I hope the employees with talent and those with loyalty find another company to work for and leave Bezos stuck with the dredges … !!
How sad !!
The only thing sad I see is your half glass full of negative comments about something you know nothing about!
The greed of Jeff Bezos and the way he treats employees is truly incredible.
You are right about how he treats his employees! How many employers offer full paid health care and thousands of dollars toward college tuition for an education that could direct you to a job that has nothing to do with Amazon. Yes I am talking about Amazon!