Amazon’s $15 minimum wage increase may not be enough for everyone

Amazon’s $15 minimum wage increase may not be enough for everyone

The pay raise will apply to 250,000 employees starting November 1 and to the more than 100,000 seasonal workers the company expects to hire for the holiday shopping season, it said.

Amazon founder and CEO Jeff Bezos, who's always been under fire from industry pundits and some elected officials about wage disparity issues within his company, said the decision came, at least in part, as a response to those disparagements.

One of Amazon CEO Jeff Bezos's harshest critics, Sen. "We're excited about this change and encourage our competitors and other large employers to join us".

Amazon's new Salt Lake facility - a sprawling, 850,000-square-foot facility near the Salt Lake International Airport - began hiring earlier this summer for new "warehouse fulfillment associates", the positions that represent the majority of the new hiring in Salt Lake City.

At that amount, it takes Bezos 12 milliseconds to earn $15.

Amazon employees now receive support for job training and health coverage, as well as retirement benefits and paid parental leave, the company said.

Bezos makes more than $4 million an hour.

It's not the first time a major USA corporation has boosted its minimum wage, Allegretto added.

Today, in separate statements in the U.S. and Britain, Amazon said it was increasing its minimum wage for all employees - including agency and temporary staff - with effect from 1 November.

"We will be working to gain Congressional support for an increase in the federal minimum wage", he said. Bernie Sanders (I-VT), released a statement praising the company's move.

The current federal minimum wage is $7.25 an hour.

An advocate for higher minimum wages, Conti added that Amazon would likely benefit if $15 an hour became the new baseline.

"I think it's a good idea, and $15 an hour is a fair and decent wage", King said.

"I've been here nearly 20 years, and this is one of the best days I've had with the company".

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About 16,000 displaced people needed clean water, Nugroho said, while 540 were injured, many getting treatment in tents. Questions are sure to be asked why warning systems set up after that disaster appear to have failed on Friday.

Accordingly, retailers, who employ a sizable share of the nation's lower-paid workers, have been stepping up pay increases. "Bezos is brilliant ... but he didn't do this alone". "There is no reason why other profitable corporations in the fast food industry, the airlines and retail should not be following".

Amazon is the second publicly traded company to be worth US$1 trillion, hot on the heels of Apple. Employees at Whole Foods, which Amazon now owns, will get the same pay hike.

Moscato noted that smaller companies typically spend more on labor than does Amazon, which uses more automation.

"It was clear to us that the $7.25 was too low for the federal minimum wage, and so we made a decision to throw our support behind increasing that", Clark said.

Sanders, who introduced a bill called the Stop Bad Employers by Zeroing Out Subsidies Act (aka the Stop BEZOS Act), complimented Amazon on the move.

It will have repercussions beyond retailers and will put pressure on any company that operates a distribution center, said Gerald Storch of the retail consulting firm Storch Advisors. At the same time, Storch said, the wage increase will widen the gap between the healthy retailers, such as Amazon, Walmart and Target, and the struggling ones, which won't be able to afford to compete on salary. "They are in a very tough place".

Amazon, founded more than two decades ago, has expanded far beyond its bookseller beginnings.

Yet despite the tight labor market, Allegretto said, wage growth has been pretty tepid.

The move comes following criticism that Amazon's workers are underpaid and overworked, and was widely interpreted as an attempt to improve its reputation.

Current pay for warehouse workers at Amazon is at least $12.25 an hour in Omaha, Nebraska, $13 in Baltimore and $16.50 in NY, according to recent job postings.

Amazon is also increasing wages in some areas outside the U.S. The company announced that the minimum wage will be 10.50 pounds an hour in London and 9.50 pounds in other parts of the UK.

Target said in September 2017 that it planned to raise hourly pay to $15 by 2020.

The push for a higher federal minimum wage will be overseen by Amazon's Jay Carney, White House press secretary during the Obama administration. With a healthy US economy, Americans looking for work have an increasing number of job options, so Amazon has to find ways to entice people to join its company.

"This is about ensuring we retain, hire, and develop the best talent in the world", he said.

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