Amazon Increases Minimum Wage - Be Careful What You Wish For
Today online retail giant Amazon announced it is raising the minimum wage it pays workers to $15 an hour in the U.S. However, that is not the only change.
No Free Lunch
Along with the announcement to raise the minimum wage to $15 an hour, Amazon also announced it will be cutting its bonus and stock award incentives.
So even though many new workers and soon to be hired workers will be making a better wage, there are also a large chunk that will actually end up netting less with this wage and no bonus/stock incentives.
Hence me saying - No Free Lunch.
New Wage Launch
The higher wage is set to kick in on November 1st and will impact 350,000 workers.
The soon to be retired incentive structure provided employees with such benefits as a share of stock at the end of each year (AMZN trades around $2,000 and is up roughly 600% over the past three years making that benefit worth much more than when initially dispersed)
“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.”
People do like stability, but in then end Amazon needed a way to mitigate such a large increase to its operating expense structure.
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This is interesting. They are also based out of Seattle, so I wonder if a lot of this is due to the mandate that Seattle had. We will see how it plays out. Thanks for sharing!
Possibly, plus home prices in the Pacific Northwest have been on a solid increase for some time now thus minimum wage to support housing expenses doesn't cut it and AMZN needs all the employees it can get.
So this is a give in one hand and take with the other. Sneaky.
Wow. They have such a thin profit margin. How will this work?
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There is no mystery here folks. If one has truely been paying attention and done any reading on this subject at all; it is crystal clear what has happened to the working people of North America since 1980. The Reagan Revolution created the reality of the voodoo economics (George Bush Sr. had it right until he was made V.P.) of a fascist economic guru named Milton Friedman. That was when his extremist Chicago School of economics was installed to undermine the Keynesian system that saw a rise of the working & middle class from 1945-1975 when the American dream was alive and well. Problem was the underclass was doing TOO WELL according to Uncle Miltie. So the brainwashing of the ALT-RIGHT began under Reagan. You have heard it for decades now folks. Unions Bad/ Corporations Good. Minimum Wage Bad/ Competition and the Market Capitalist Forces Good. The idea of socialized medical system like most of the Civilized world BAD/ Corporate for profit medical system GOOD. Profits for workers BAD/ Corporate & C.E.O. profits Good. Middle class greed BAD/ Oligarch 1%`s greed Good. You get the picture. So since 1980; what have we seen. You get the picture. Working class families reduced to near poverty or worse. Middle class families...WHAT middle class families? You are on one side of the great divide or the other. Uncle Friedman would be proud. Keynes is spinning in his grave. Wake up America!
The Country is certainly riding down an interesting path. It's why I work for myself and build passive income/business opportunities. I will not be a statistic.
Soon many people will be replaced by robots.
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It's so lovely that none of the news stories I saw on this covered the fact that they were getting rid of the bonuses and stock incentives.
Personally I think things like this should be optional. You should get the choice to get a certain percentage paid out in stock. Perhaps even getting somewhat of a bonus for getting paid out in stocks.
This will likely benefit seasonal workers most of all, since they probably wouldn't have gotten stocks anyway.
You can also buy stocks on your own if you want to.
Yep just about everything has a pro and a con in life it seems.