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Amazon to Boost Pay for Longtime Workers

The move comes after backlash over cutting bonuses
By Newser Editors and Wire Services
Posted Oct 10, 2018 6:58 PM CDT
Amazon's logo.   (AP Photo/Richard Drew, File)

(Newser) – Amazon, facing a backlash from longtime warehouse employees who say its $15 hourly minimum wage wouldn't benefit them, will provide a bigger raise to those workers, the AP reports. The company said Wednesday that some adjustments are being made this week, and workers who already made $15 an hour will get more than the $1 an hour raise promised last week. The amount will differ by warehouse and affect a small number of employees, but Amazon declined to say how many. When Amazon announced last week that it would boost its hourly minimum wage to $15, it also cut two benefits: monthly bonuses and a chance to own Amazon's sky-rocketing stock, currently worth nearly $1,800 a share. Several employees told The AP last week that they expected to earn less because of the cut benefits.

Amazon said in a statement at the time that the changes meant "compensation will be more immediate and predictable." The Seattle company, which has more than 100 warehouses around the country, said "the significant increase in hourly cash wages more than compensates" the benefits that will be phased out. A worker at a Maryland warehouse, who spoke on the condition of anonymity, said employees were told Tuesday that they would get a raise of $1.25 an hour after Nov. 1. That's 25 cents more an hour than what they were told last week. The worker said they were also told they would get cash payouts for reaching certain milestones. They'll receive $1,500 for staying with the company for five years and $3,000 after reaching their 10-, 15- and 20-year anniversaries. Previously, the company gave workers one or two shares of Amazon stock after each of those anniversaries.

(Read more Amazon stories.)

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