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Amazon Announces $15 Minimum Wage, Then Cuts Everyone's Bonuses

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Amazon, with centi-billionaire CEO Jeff Bezos at its helm, has increased its minimum wage for hourly workers to $15 per hour.

CNBC reported that the company confirmed via email that they are getting rid of incentive pay and stock option awards in order to afford the hike.

Amazon believes that their new plan “more than compensates” for the loss in benefits, CNBC reported.

“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 a statement emailed 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. In addition, because it’s no longer incentive-based, the compensation will be more immediate and predictable.”

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However, despite the bright outlook that Amazon has put on their new compensation plan, according to The Guardian, U.K. warehouse workers could suffer a loss of almost $2,000 per year.

The Guardian reported that, “The removal of employee share and incentive schemes could cost thousands of workers £1,500 in a single year, according to the GMB union, which accused the online retailer of imposing ‘a stealth tax on its own wage increase.'”

“The retailer’s warehouse workers currently receive one Amazon share, worth $1,961 (£1,508), at the end of every year they work at the company, and an additional share once every five years. If they hold on to the shares for two years, they can cash them in tax free, according to the GMB.”

CNBC reported, however, that “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 someone familiar with the issue.

Do you think Amazon is shorting their employees?

“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” said Bezos, according to Amazon’s blog.

“We’re excited about this change and encourage our competitors and other large employers to join us.”

In addition to their change in payment structure, the company also advocates that the federal minimum wage be increased as well.

“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,” said Jay Carney, senior vice president of Amazon global corporate affairs.

“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.”

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However, according to GBM, this is not a benefit to the employees that they represent.

According to Tim Roache, GBM’s General secretary, Amazon had not said anything about cutting staff benefits when the new hourly pay rates were announced, The Guardian reported.

“This is a basically a stealth tax by the employer on its own wage increase — a clear case of robbing Peter to pay Paul.

Roache continued, “If Jeff Bezos — the richest man in the world — really wants to give hardworking staff a pay rise, he should let them keep their share options as well as increasing their hourly rate.”

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Savannah Pointer is a constitutional originalist whose main goal is to keep the wool from being pulled over your eyes. She believes that the liberal agenda will always depend on Americans being uneducated and easy to manipulate. Her mission is to present the news in a straightforward yet engaging manner.
Savannah Pointer is a constitutional originalist whose professional career has been focused on bringing accuracy and integrity to her readers. She believes that the liberal agenda functions best in a shroud of half truths and misdirection, and depends on the American people being uneducated.

Savannah believes that it is the job of journalists to make sure the facts are the focus of every news story, and that answering the questions readers have, before they have them, is what will educate those whose voting decisions shape the future of this country.

Savannah believes that we must stay as informed as possible because when it comes to Washington "this is our circus, and those are our monkeys."
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