Amazon pay raises leave com­peti­tors flat-footed

Financial Mirror (Cyprus) - - WORLD -

On Thurs­day, Amazon raised its com­pany-wide min­i­mum wage to $15 per hour for all full-time, part-time and tem­po­rary work­ers in the United States, a move that is es­ti­mated to i mpact over 350,000 peo­ple. A pay raise was also rolled out in the United King­dom with the spe­cific in­crease based on the lo­ca­tion of its work­ers.

This com­pany-wide shift comes at the ex­pense of cer­tain ben­e­fits like the Re­stricted Stock Units, which sup­ple­mented Amazon em­ploy­ees in­come. By the end of 2019, Amazon is ex­pected to phase out the Re­stricted Stock Unit op­tion and re­place it with a di­rect stock pur­chase plan. The change was par­tially fu­eled by the re­lease of the pay gap be­tween its CEO Jeff Be­zos and the me­dian Amazon worker, which sparked ou­trage in April of this year. Amazon’s com­peti­tors haven’t been able to match the com­pany’s quick min­i­mum wage raise. Tar­get’s min­i­mum wage cur­rently stands at $12 per hour, a move the com­pany fully rolled out in Septem­ber. By the end of 2020, Tar­get ex­pects to match Amazon’s min­i­mum wage. Wal­mart raised its min­i­mum wage from $9 to $11 per hours af­ter the cor­po­rate tax cuts in De­cem­ber. Costco upped its min­i­mum wage from $13 to $14 in June. (Source: Statista)

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