Amazon Cuts Workers’ Monthly Bonuses, Stocks After Minimum Wage Increase, Employees Making Less Money
Amazon was publicly praised for raising its minimum wage for its hourly workers to $15, but employees may actually be making less money because Amazon is cutting their monthly bonuses and stock options.
Two people familiar with Amazon’s pay policies told Bloomberg News that Amazon told employees on Oct. 3 that bonuses and stock options are being cut to help pay for the raises.
Several Amazon warehouse employees told The Verge that they will be losing thousands in incentive pay (two shares of Amazon stock when hired — $1,952.76 per share — and an additional stock option each year).
An Amazon warehouse worker said the news was devastating to fulfillment employees, many of whom depend on their bonuses on top of their hourly wages to survive.
Amazon’s spokesperson told CNBC that workers will actually make more without their bonuses and stocks:
The significant increase in hourly cash wages more than compensates for the phase out of incentive pay and RSUs.
We can confirm that all hourly Operations and Customer Service employees will see an increase in their total compensation as a result of this announcement.
In addition, because it’s no longer incentive-based, the compensation will be more immediate and predictable.
Amazon workers have called out to Independent Sen. Bernie Sanders of Vermont who praised the minimum wage raise:
Wish more people knew this or could get more attention on this. Have many family members who work at Amazon and they lost a lot yesterday. They were already @ $15 or above (most are at their facility), but lost all incentive and stock programs. They’ll make $3-6k less per yr now.
— splitwig (@The_splitwig) October 3, 2018