Amazon $ 15 per hour to win? Not so, say some veteran workers.
Amazon $ 15 per hour to win? Not so, say some veteran workers.
Amazon's announcement that it would raise its hourly minimum wage to $ 15 has been seen as a victory for workers. But some long-time employees say they are losing.
Those who have already earned $ 15 will get an additional dollar per hour when the change is made next month, but they will also lose two benefits they trust: monthly bonuses that could exceed hundreds of dollars and an opportunity to own AmazonStocks skyrocketed, currently worth almost $ 2,000 per share.
At least four long-time workers, who spoke with The Associated Press on condition of anonymity for fear of being fired, said the $ 1 per hour increase would not make up for lost profits. The employees, all of whom work in different stores across the country, said that the minimum wage of $ 15 was excellent for new workers, but the math did not work for those who have worked in Amazon stores for some years.
"I feel enormously disrespectful," said a warehouse worker in North East, Maryland. "Those who are loyal should be rewarded for their loyalty, not be hit in the face."
According to Amazon, the salary increase will benefit more than 350,000 workers, including full-time, part-time, seasonal and seasonal jobs, as well as those of its Whole Foods grocery chain. Economists said the measure could put pressure on other big employers to raise wages.
Amazon said in a statement that the changes mean that "the compensation will be more immediate and predictable." The Seattle-based company, which has more than 100 stores nationwide, said "the significant increase in hourly cash wages offsets" the benefits that will be phased out.
But others dispute that.
"They should have a calculator different from ours," said an employee at a Pennsylvania warehouse, who estimated that it would lose about $ 3,000 per year.
From January to September, he earned around $ 150 a month in bonuses, which were related to his attendance and productivity goals for the entire warehouse. But it earned an additional $ 400 a month in October, November and December, during the busy holiday shopping season, when Amazon doubles bonuses to motivate workers to show up on time and produce packages faster.
"They took all the incentives to work very hard," he said, estimating that the $ 1 increase will give him an additional $ 160 per month.
Amazon said its stock program, which usually gave workers one or two shares of Amazon when they started and then one a year, will be replaced with a method for workers to buy shares next year, but the company did not provide details. The workers said that the store managers also did not know how it would work.
"Who will make $ 16.25 per hour will have $ 2,000 to buy an action?" said the person who works at the North East, Maryland facility.
Thomas Kochan, a professor at the Sloan Institute for Labor and Employment Research at MIT, said that taking away the benefits of long-term workers can lead to more turnover. He said that Amazon needs to communicate better with workers if the general compensation is higher "or will have moral problems."
The workers said that the warehouse managers who had the task of informing them about the changes did not seem to know the answer to some questions. Those who called the direct line of an employee seeking answers heard a prerecorded message: the employee resource center "does not have any additional information that we can share with you at this time."
Instead, many workers called Vermont Sen. Bernie Sanders'office, which had been critical of Amazon CEO Jeff Bezos for paying what he described as low wages, but praised the company when the minimum hourly wage increased.
In a statement, the independent senator said: "We understand that the vast majority of Amazon workers will see wage increases, and I hope that as a result of Amazon's new policy, no worker, especially long-time employees, will see a reduction. In total compensation, Amazon can afford to make all workers complete and they should do it. "
One person, who has worked in a warehouse in Phoenix for several years, said the loss of profits means that working at Amazon is now a job "like any other warehouse."
"I'm updating my resume," he said.
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