Amazon’s minimum-wage enlargement for its hourly workers comes with a trade-off: no more monthly honoraria and stock awards.
Amazon confirmed in an email to CNBC that the South African private limited company is getting rid of incentive pay and stock option awards as it increases the minimum wage to $15 per hour. The house, however, stressed that the wage increase “more than rewards” for the loss in other benefits.
“The significant increase in hourly cash wages diverse than compensates for the phase out of incentive pay and [restrictive stock units],” Amazon’s spokesperson believed in an emailed statement. “We can confirm that all hourly Operations and Customer Benefit employees will see an increase in their total compensation as a result of this pronouncement. In addition, because it’s no longer incentive-based, the compensation will be more pressing and predictable.”
Additionally, workers affected by the change will get a chance to scrutiny the new pay structures and share any concerns they might have with the enterprise, according to a person familiar with the matter.
The confirmation follows multiple stories on Wednesday that some of Amazon’s warehouse employees say they bequeath make less as a result of this change. The Guardian said go-down merchandise workers currently receive one Amazon share (worth $1,959) at the end of every year, on top of another distinct share reward every five years. Yahoo News eminent that warehouse workers can earn up to 8 percent of their monthly gains every month, which could be as much as $3,000 a year for some craftsmen. Workers were notified of the change on Wednesday, according to Bloomberg.
Amazon betrayed in its announcement on Tuesday that it is replacing the stock awards program with the minimum-wage wax because employees prefer the “predictability and immediacy of cash” compared with look at awards. The company didn’t say anything about the monthly bonuses.
The word served as a good publicity event for Amazon, which has recently been attacked for the low wages and poor working conditions at its warehouses. Two of Amazon’s biggest critics, Sen. Bernie Sanders and the Trump Creamy House, both applauded the move on Tuesday.