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Amazon Axes Staff Bonuses After Minimum Wage Hike

Several Amazon employees have expressed their disappointment with the e-commerce giant, asserting its decision to slash staff benefits and bonuses – despite a jump in minimum wage – will leave some with reduced take-home pay.

Just yesterday, Amazon received praise for its ability to ‘listen’ to critics, and lift its minimum wage to US$15/hour.

According to Bloombergon Tuesday Amazon informed staff it was cutting monthly bonuses and stock options for certain warehouse workers (totalling hundreds of dollars), to help pay for the wage increase.

Speaking to The Verge, several Amazon employees claim they were reliant on the monthly performance based incentives, with the news a devastating blow.

The bonus programs were reportedly based on several metrics including; hitting productivity targets and good attendance.

Reports claim some Amazon staff could accrue an 8% monthly bonus, with a 16% bonus available in the peak November and December season.

The wage hike will increase the total compensation of hourly warehouse and customer service workers, despite the stock and bonus options cut.

Employees whose wages were already above US$15/hour will reportedly receive an hourly raise of US$1/hour.

Commentators claim Amazon’s more immediate remuneration increase (versus stock options) will enhance its ability to hire seasonal workers amid a tight labour market.

Speaking to CNBCAmazon asserts “the significant increase in hourly cash wages more than compensates for the phase out of incentive pay and RSUs.”

“In addition, because it’s no longer incentive-based, the compensation will be more immediate and predictable.”


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