Amazon gets rid of bonuses for hourly employees
- HRM Asia Newsroom
- Topics: Compensation and Benefits, News, US
Hourly employees at Amazon, such as warehouse workers, will no longer receive monthly bonuses or stock options.
The e-commerce giant has cut compensation categories in order to fund its pledge to raise the minimum hourly wage to US$15.
“Because it’s no longer incentive-based, the compensation will be more immediate and predictable,” said the company in a statement.
“The significant increase in hourly cash wages more than compensates for the phase out of incentive pay and [stock options],” a spokesperson added to CNBC.
The current federal minimum wage in the US is $7.25.
“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.
However, it has been reported that some Amazon workers are not happy with the move, as those already receiving US$15 per hour will only see minimal increases in their pay — while losing thousands in bonuses and stock options.
Wish more people knew this or could get more attention on this. Have many family members who work at Amazon and they lost a lot yesterday. They were already @ $15 or above (most are at their facility), but lost all incentive and stock programs. They’ll make $3-6k less per yr now.
— splitwig (@The_splitwig) 3 October 2018
