Amazon:
Amazon today announced it is increasing its minimum wage to $15 for all full-time, part-time, temporary (including those hired by agencies), and seasonal employees across the U.S.—effective November 1. The new Amazon $15 minimum wage will benefit more than 250,000 Amazon employees, as well as over 100,000 seasonal employees who will be hired at Amazon sites across the country this holiday.
This more than doubles the current hourly rate of $7.25.
Definitely a step in the right direction for Amazon, addressing one of its biggest criticisms. It’d be nice if they enhanced this move by making it easier for part time employees to work enough hours to get health benefits.
This is great for Amazon to do, but what about workers’ conditions at the warehouses?
“It’d be nice if they enhanced this move by making it easier for part time employees to work enough hours to get health benefits.”
Wouldn’t that make them full time employees?
Fair question. My understanding is that Amazon makes it hard for certain workers to work enough hours to qualify for full time. In other words, artificially holding them to one hour less than enough to qualify for benefits. Not certain of this info, hoping folks with more specific knowledge might post a link to the details.
Not just Amazon. Many companies do this in order to avoid paying for the benefits given to full time employee.
It’s basic economics: Increase the cost of something, you’ll get less of it. Increase the cost of full time employees, you’ll get fewer full time employees.
“We will be working to gain Congressional support for an increase in the federal minimum wage. The current rate of $7.25 was set nearly a decade ago,” said Jay Carney, Senior Vice President of Amazon Global Corporate Affairs. “We intend to advocate for a minimum wage increase that will have a profound impact on the lives of tens of millions of people and families across this country.”
Amazon can afford to pay its workers more. Now they want to force this on their competitors, raising their costs. Some competitors will be able to absorb the additional costs, some will pass on the increased costs to customers (hurting customers, but benefiting Amazon), and some who will go out of business (hurting customers and employees, but benefiting Amazon). Meanwhile, they get great PR from folks too blind to see what’s really going on.
This reminds me of Mark Zuckerberg’s recent comments to Congress that not only does he welcome regulation, he’ll help write it. How convenient.
It’s also basic short-sighted business practice to impoverish your workers without regard to whether they can still afford to be your customers as well.
It’s a start.
These workers can thank Bernie Sanders, who was pushing for legislation to charge Amazon for the welfare their workers depend on. By Sanders putting Bezos in the hot seat, he forced him to act.