AMAZON BUMPS MIN PAY TO $15
Amazon will pay its lowestlevel employees $15 per hour beginning next month, a move that comes after months of staunch criticism of the company and its CEO, Jeff Bezos, who is now the richest man in the world.
“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” Bezos said in a statement. “We’re excited about this change and encourage our competitors and other large employers to join us.”
Beginning next month, Amazon will pay all of its employees — including part-time and temporary employees — a starting wage of $15 per hour, the company said. That will include 250,000 full-time employees, including Whole Foods employees, and another 100,000 seasonal employees. Workers who already earn more than $15 per hour will also see an increase, the company said.
Fall River Mayor Jasiel Correia, whose city includes a massive Amazon distribution center, said the impact of the news will go beyond the roughly 2,000 employees.
“I think it’s going to put a sense of pressure, positive pressure, on other companies to employ and retain employees at higher wages,” Correia said. “It’s going to continue to push other companies in that space to raise their minimum wage.”
The announcement comes with the holiday shopping season imminent, and with an already tight labor market. By raising its minimum wage, Amazon will be able to hire temporary workers with greater ease, experts said.
“Other companies will have to up their game in the labor market. It’s already a tight market,” said Zeynep Ton, a professor at MIT Sloan School of Management and the founder of the Good Jobs Institute. “I know that several other retailers are thinking in the same direction.”
Amazon has been the target of high-profile elected officials across the spectrum in recent months, including from President Trump and Vermont Sen. Bernie Sanders.
Last month, Sen. Elizabeth Warren said Amazon’s position as a direct seller to consumers as well as a platform for other sellers means the company can take advantage of its customers, and said the company should be more closely scrutinized. Yesterday, Warren praised Amazon’s move, but her office said it did not change her position.
“I imagine Amazon wants to be the kind of company with a great reputation,” Ton said. “It’s hard to believe that their reputation was not an important contributor.”
Amazon said it will also lobby Congress to raise the federal minimum wage, which is currently $7.25 per hour. Amazon did not say what wage it will push for.