Amazon wages rising
Retailer plans to pay all workers at least $15 an hour as of Nov. 1.
Amazon.com announced Tuesday that it will raise its minimum wage to $15 an hour for all employees, a move that comes after the tech giant faced criticism for how much it pays its workers.
The pay increase will affect 250,000 Amazon employees and 100,000 seasonal employees hired at Amazon sites during the Christmas season. It will affect full-time and parttime workers, as well as Whole Foods Market employees, and will take effect Nov. 1.
“We listened to our critics, thought hard about what we wanted to do and decided we want to lead,” Amazon chief executive Jeff Bezos said in a statement. “We’re excited about this change and encourage our competitors and other large employers to join us.”
Amazon has faced criticism over the years for what some say are poor working conditions in its warehouses, the hubs the company has set up nationwide for rapid delivery of online purchases. (Bezos also owns The Washington Post.)
Sen. Bernie Sanders, I-Vt., has lashed out at Amazon recently, saying the company does not pay a “living wage” and leaves some dependent on safety-net programs such as food stamps and Medicaid. He attacked Bezos, the world’s richest person, and introduced legislation called the “Stop BEZOS Act” to tax Amazon and other large employers to recoup the cost of public benefits paid to employees.
“Today I want to give credit where credit is due, and that is that Mr. Bezos and Amazon have done the right thing,” Sanders said in an interview Tuesday. “This is a significant step forward for many thousands of Amazon employees.”
Sanders said Amazon’s efforts were likely to have “a ripple effect all over the economy” by putting pressure on competitors like Walmart to follow suit.
“Not only does this make a difference in the lives of hundreds of thousands of Amazon
employees, it also sends a message to the fast food industry, the airline industry and the retail industry in general that the time is now to begin paying workers a living wage,” he said.
In its announcement Tuesday, Amazon said it would lobby for an increase in the federal minimum wage, which has been $7.25 for a decade. The online giant is the country’s second-largest private employer, behind Walmart. Last month it became the country’s second publicly traded company to be valued at more than $1 trillion.
The $15-an-hour minimum pay is also an incentive for people to work for Amazon — rather than Walmart or Target — as the retail industry gears up for the Christmas shopping season as U.S. unemployment remains historically low.
The world’s biggest online retailer is on pace for another record year, with spending on its site projected to surge 28 percent to $394 billion in
2018, according to EMarketer Inc. To get there, Amazon has to lure a lot of people into its warehouses for 10-hour shifts plucking products from bins and packing boxes — work that may seem monotonous compared with customer-service jobs that involve interacting with people.
“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 global corporate affairs for the company. “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.”
President Barack Obama’s administration had called for
raising the minimum wage to $10.10, but the proposal went nowhere during an era of divided government. Many business groups and conservatives argue that $15 an hour is too high, especially in places outside urban centers that have lower costs of living.
Last month, Sanders introduced a bill calling on Amazon to pay a living wage to its employees, after reports that thousands of Amazon workers rely on federal assistance for food, housing and health care. The median Amazon worker was paid $28,446 last year, according to company filings, which translates to about $13.68 an hour.
“What Mr. Bezos has done today is not only enormously important for Amazon’s hundreds of thousands of employees, it could very well be … a shot heard around the world,” Sanders said. “I hope very much that other corporate leaders around the country will follow his example.”
Other companies also have moved to raise wages, particularly in this tight labor market. Target announced earlier this
year that it would raise its minimum wage to $12 an hour with a plan to increase it to $15 by 2020. Walmart raised its minimum wage to $11 in January. Facebook also boosted its minimum wage for its contracted workforce — janitorial staff, food-service workers and other similar workers — to $15 an hour, while Costco now pays $14 an hour.
Amazon said Tuesday that all employees, including those who already make $15 an hour, will receive pay increases as a result of its new policy. The Washington Post reported last week that Amazon had begun giving raises of 25 cents to 55 cents an hour to workers at its fulfillment centers nationwide.
Amazon also announced minimum pay increases to $13.62 in London and $12.30 elsewhere in Britain. It said the minimum pay would benefit 17,000 Amazon employees and more than 20,000 seasonal workers.