Saturday, 20 October, 2018

Amazon raising minimum wage to $15 per hour starting next month

The Latest: Amazon lifts minimum wage to $15 Amazon raises minimum wage for all US, UK employees
Nellie Chapman | 02 October, 2018, 21:30

Today, the online retail giant is increasing the minimum salary to $15 per hour for all USA employees, including part-time and full-time employees.

Amazon has more than 575,000 employees globally.

Amazon workers in the United Kingdom are now paid £8 an hour, while the current minimum wage is £7.83 for employees aged over 25.

The company said the wage will benefit more than 250,000 of the company's employees, and another 100,000 seasonal employees.

"With many municipalities raising minimum wage over the next few years to approaching $15 per hour, this was not really a stretch for them to do that".

Amazon, like other retailers, may also have concluded that it needs to raise wages to reduce turnover and attract better job applicants at the company's crucial network of package warehouses and for positions in Amazon's growing network of self-delivery operations. The change applies to all "full-time, part-time, temporary (including those hired by agencies), and seasonal employees" who are based in the US.

Amazon employees now receive support for job training, health coverage, as well as retirement benefits and paid parental leave, the company said. The federal minimum wage hasn't risen since 2009.

What's more, Amazon (amzn)-the second-largest private-sector employer in the US -is now lobbying the government to increase the federally-mandated minimum wage, set nine years ago, from $7.25 an hour. "Having major, profitable employers like Amazon join the fight could help finally unstick it", she said.

CEO Jeff Bezos said the company had "listened to our critics". Sanders applauded Amazon's announcement but did not comment on the status of his bill, the Stop BEZOS Act, which sought to tax Amazon to cover the cost of federal assistance its warehouse workers receive. The company is led by Jeff Bezos, who is the world's richest man with a net worth of $150 billion, according to Forbes.

Workers across the country have pushed for a $15 minimum wage.

Neil Saunders, managing director of the consultancy GlobalData Retail, said that the move could help Amazon recruit workers.

In announcing the minimum wage increase, a company spokesman predicted it will "have a profound impact on the lives of tens of millions of people and families across this country". But the company says the employees have said "they prefer the predictability and immediacy of cash to RSUs".