Senator Bernie Sanders (I-VT) got his way this week when Amazon announced that it was raising its minimum wage to $15 for all workers. Sanders, and even President Donald Trump, celebrated the move, though both Sanders and Trump likely still detest Amazon and Jeff Bezos for different reasons.
Unfortunately for workers, the potential gains from a wage hike will be offset by losses in other forms of compensation.
Amazon confirmed that it is phasing out its stock-grant program and incentive pay. Under the current system, workers receive two Amazon shares once they are hired and one additional stock every year. With shares nearing $2,000, this was a pretty good incentive, especially if they were given a couple of shares a year ago.
The company said its stock-grant program will be replaced by a direct stock-purchase program by the end of next year.
Overall, many workers, both in the U.S. and the U.K., are expecting a pay cut.
From MarketWatch:
“Several Amazon warehouse workers told The Verge that they worry they could actually see a pay decrease after missing out on thousands of dollars in incentive pay, which reportedly can reach 8% a month and 16% during the peak holiday season. In the U.K., where hourly workers also got a raise this week, some Amazon warehouse workers told The Guardian that the stock and incentive-pay cuts could offset about half the amount they’d get in raises, with one union leader saying it’s “a stealth tax on its own wage increase.”
Good job Bernie! Amazon employees are feeling the bern.
Leave a Comment