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Amazon Is Raising Some Workers' Pay Further, Adding Bonuses After Controversy (bloomberg.com) 112

An anonymous reader quotes a report from Bloomberg: Amazon is sweetening the pay for some of its longtime warehouse workers after employees criticized the loss of bonuses and stock awards as part of the company's pledge to boost all wages to at least $15 an hour. The world's largest online retailer grabbed headlines last week with its minimum-pay pledge -- followed by concerns from veteran workers who feared their compensation would actually decline because the company also eliminated bonuses and stock awards. Amazon said any workers already earning $15 would get raises of $1 per hour. Now, some of those employees are learning their hourly raises will actually be $1.25 an hour. Additionally, Amazon is introducing a new cash bonus of $1,500 to $3,000 for tenure milestones at five, 10, 15 and 20 years. Workers with good attendance in the month of December will also get a $100 bonus, according to the company. "All hourly Operations and Customer Service employees will see an increase in their total compensation as a result of this announcement," Amazon said in a statement. "The significant increase in hourly cash wages effective Nov. 1 more than compensates for the phase out of incentive pay and future (stock) grants."
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Amazon Is Raising Some Workers' Pay Further, Adding Bonuses After Controversy

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  • pay and benefits. Most of my friends here in Seattle work for Amazon, and they make less than market, are expected to work 60+ hours a week, be on call 24/7, and aren't allowed vacation time unless they're from Asia.

    • by registrations_suck ( 1075251 ) on Wednesday October 10, 2018 @08:58PM (#57458974)

      They must like it since they donâ(TM)t go elsewhere.

      • by painandgreed ( 692585 ) on Thursday October 11, 2018 @01:12PM (#57461870)

        They must like it since they donâ(TM)t go elsewhere.

        Not really. They're gone one way or another in 18 months on the average, either by job hopping, perhaps internally, or by being fired. Much of Amazon is all about putting in that work only to pad your resume for the next job, vacation between jobs, and then repeating the process till they have built up a resume to get the career they want. At least, that is how the people I've known at Amazon have treated it.

    • by Anonymous Coward

      > unless they're from Asia

      I understand that flights to India or China are expensive and take a lot of time so you want a minimum of two weeks off, but it just sucks for workers from America. I haven't had a full week off since 1993 when I had my first job out of college. Just sucks that we're not allowed time off and they get a lot of time off every year. My Indian friends that work at amazon.com all get at least two weeks off a year while my friends that are local only get a long weekend off here or

    • by Anonymous Coward on Wednesday October 10, 2018 @09:15PM (#57459044)

      The lack of vacation time except for Asians is pretty normal in the Seattle area. I grew up in Seattle and graduated from Univ of Washington with a CS degree in 1989, and I haven't had an entire week off my entire adult life but most of my coworkers from India have always been allowed two or more weeks off. Yes, I understand the hassle of 24+ hours of travel time and the expense to take you entire family home, but it's unfair to the rest of us. In addition, requesting time off from amazon.com just sucks. I've been trying to see my eye doctor to get new glasses for almost five years. I keep making appointments, and my time off either gets denied or it's approved then later denied since something comes up. It sucks that the company plus myself pays so much for vision coverage, but I can't use it.

        • Dude...get a real job.

          You mean other than being a Russian AC troll? I've been in the tech industry in Seattle for 25 years now. Taking three weeks off for Burning Man every year is more common than never being able to get time off for an eye exam.

      • by Anonymous Coward

        You need to get approved time off for a Dr's appointment? And you're presumably an "exempt" status employee?

        I'd never work for a company like that. It's complete and utter trash.

        Salaried, exempt staff, by definition are supposed to have a basic level of autonomy.

        Perhaps it's time to speak up for yourself, get a real vacation approved and take it no matter what. Once it's approved the discussion is simply: "I made plans. I won't be in."

        If they decide to later deny it or terminate you, so much the better. Kee

      • "I've been trying to see my eye doctor to get new glasses for almost five years."

        That sounds more like slavery than a job. You know some places are open nights and weekends. Or do they make you work 24/7 as well?

    • "Most of my friends here in Seattle work for Amazon, and they make less than market"

      If that's what Amazon is paying, it sounds like it IS the market and paying accordingly.

  • $3k !!!!! (Score:4, Insightful)

    by rfengr ( 910026 ) on Wednesday October 10, 2018 @08:52PM (#57458948)
    $3k bonus after 20 years! Woot! That’ll pay for the knee replacements!
    • Not even close.

    • Re:$3k !!!!! (Score:4, Insightful)

      by Obfuscant ( 592200 ) on Wednesday October 10, 2018 @09:02PM (#57458990)
      This just shows the problem with creating a really high minimum wage. Everyone who was already making that amount will want a raise, too. If half your employees already make $15/hr, and half make the actual minimum ($7 something), then giving half your employees a raise to $15/hr will only make the other half unhappy.

      "I had to work here 10 years to get up to $15/hr. Now they're paying newbs who walk in the door on day 1 the same amount I'm making after ten years ... how unfair is that?"

      And complaining that they get a $3000 bonus after working ten years, oh my, how unfair is that! Paying for knee replacements is a health insurance issue. Worker's comp in many places. Worker's Comp in Oregon is so much better than health insurance because there is no deductable and no "in network" for care. You get a bill for a service for a worker's comp claim you send it to SAIF and they pay it. You have to drive 60 miles to see a specialist? You submit a milage claim and they pay it.) When I got my last worker's comp claim approved, they sent me a stack of reimbursement forms preprinted with my info, all I have to do is fill in the amounts and mail them back.

      I hope Amazon loves the results of their social experiment. It will only prove to them how over-employeed they are and push for even more automation, like the Japanese warehouse that cut its employees by 90% after automating.

      • Re:$3k !!!!! (Score:4, Insightful)

        by skam240 ( 789197 ) on Wednesday October 10, 2018 @10:46PM (#57459296)

        "This just shows the problem with creating a really high minimum wage. Everyone who was already making that amount will want a raise, too."

        It's only a problem in the immediate context and really it's only a problem because clearly employees were being under paid, thus Amazon's raising their internal minimum wage. If employees were paid properly so this sudden adjustment didn't need to be made this wouldn't be a problem.

        "I hope Amazon loves the results of their social experiment. It will only prove to them how over-employed they are and push for even more automation, like the Japanese warehouse that cut its employees by 90% after automating."

        Of course Amazon's big problem right now is a labor shortage due to low unemployment. Make no mistake, this wage change has absolutely nothing to do with altruism, it has everything to do with making themselves competitive at their lowest levels with McDonald's.

        • by Anonymous Coward

          Make no mistake, this wage change has absolutely nothing to do with altruism, it has everything to do with making themselves competitive at their lowest levels with McDonald's.

          And why is this bad... Competition is pushing the "little man" to higher qualities of life. Free markets are driving better results than some federal/local minimum wage requirement.

      • by rsilvergun ( 571051 ) on Wednesday October 10, 2018 @11:07PM (#57459362)
        it's a tactic management has used for decades to excuse poor pay. You keep a few better paid employees because it keeps everybody from organizing and demanding better pay. I saw this in the call centers in the late 90s/early 00s. Management would tell the existing employees how lucky they were because they started at $10/hr when the new guys started at $7. Nevermind that $10/hr wasn't enough to get by even back then.

        Also before everyone piles in with the old "if you raise wages prices go up" nonsense, if that were true humanity could never progress as a species. We'd still be subsistence farmers and the big mac index wouldn't be a thing. Prices go up slower than wages when productivity goes up faster than wages. And productivity has been raising pretty much non stop if you focus on raw output (yes, an increasing number of low wage service employees replacing high paying manufacturing jobs means that measured productivity growth across the entire economy is flat, but we're still making more real goods with less people, see here [youtube.com]).

        Basically so long as you're making more stuff with less or even the same people you can raise wages without price inflation, because that's real wage growth. e.g. there's more stuff for everybody. Well, not since 2008 though. Since 2008 the more stuff part of the equation has gone to the top 1%....
        • Basically so long as you're making more stuff with less or even the same people you can raise wages without price inflation, because that's real wage growth. e.g. there's more stuff for everybody. Well, not since 2008 though. Since 2008 the more stuff part of the equation has gone to the top 1%....

          The "more stuff" part maybe hasn't gone to you, but globally, the gains aren't restricted to the top 1%. Billions of people have entered the middle class [brookings.edu] (and millions have joined the 1%).

        • Also before everyone piles in with the old "if you raise wages prices go up" nonsense, if that were true humanity could never progress as a species.

          It is obviously true, because you are forgetting the implicit "all other things being the same" condition. All other things being the same, doubling the cost of labor will absolutely cause the prices to go up. It cannot do otherwise. If you have a shift of ten people at McDs and the wages (and associated taxes, etc) double, then the prices will have to go up.

          Now, the reason we "progress as a species" (which is itself a stupid way to refer to this) is because all other things are not the same. You have a sh

          • by Uberbah ( 647458 )

            It is obviously true, because you are forgetting the implicit "all other things being the same" condition. All other things being the same, doubling the cost of labor will absolutely cause the prices to go up. It cannot do otherwise.

            More absolute nonsense, as prices are set to maximize revenue. Let's say you're middle management and you come into the CEO's office, to tell him that you've raised prices in response to the latest increase in the minimum wage. He asks if the price increase has cost the compan

            • More absolute nonsense, as prices are set to maximize revenue.

              When your costs go up, they come out of that "profit", and to keep the profit the prices have to go up. A company that has a 2% margin like many grocery stores do cannot accept a 10% increase in costs and keep the prices the same.

              Let's say you're middle management and you come into the CEO's office, to tell him that you've raised prices in response to the latest increase in the minimum wage. He asks if the price increase has cost the company more in lost customers than it has gained in creased revenue,

              The number of lost customers is completely irrelevant if your prices no longer cover the costs of doing business. Any exec who tells the CEO that "we've kept 100% of our customers but every sale is now costing us money because Uberbah says we don't have to raise prices to cover tha

      • Re: (Score:2, Interesting)

        by Anonymous Coward

        Just because workers comp is like that where you live, don't assume its like that for most of the U.S. My wife used to work at a nursing home where they chronically understaffed. While lifting a patient that should have been a two person lift (but they only had one person for that wing), my wife hurt her back. Two separate doctors recommended getting an MRI but workers compensation required preapproval and they refused to approve it. They also refused to approve other procedures strongly recommended by

      • by mark-t ( 151149 )
        You couldn't be more wrong. Read this [jezebel.com].
        • by Mashiki ( 184564 )

          You couldn't be more wrong.

          Tell it to the 60k people in Ontario [www.cbc.ca] who lost their job when the minimum wage was increased by $2.40/hr. Ontario bumped it's min. wage from $11.60 to $14/hr in one year, the estimates...estimates were 60k jobs lost by 2019. [globalnews.ca] The reality was so much worse, you can find the usual sites like vox, vice, huffpo all falling over themselves that min. wage hikes really don't kill jobs. The fact that Ontario accounted for 68% of all jobs lost in Canada tells a different story, speaking of which out of those 60k p

          • by mark-t ( 151149 )

            Minimum wage hikes do cost some jobs, but most people who get laid off find employment again within 6 months, and for minimum wage workers, at a better rate of pay on account of the minimum wage hike.

            Or do you think that it's right to pay people that work full time hours anything less than a wage that is enough to actually live on?

            • by Mashiki ( 184564 )

              Minimum wage hikes do cost some jobs, but most people who get laid off find employment again within 6 months, and for minimum wage workers, at a better rate of pay on account of the minimum wage hike.

              In theory those people find work. But look to the US, where people were unemployed so long they fell right off the official stats. Here in Ontario, we've shed nearly 400k good paying middle income jobs because of the policies of the previous government. The anti-manufacturing, pro-service industry crap hurt a lot of people.

              Or do you think that it's right to pay people that work full time hours anything less than a wage that is enough to actually live on?

              That depends. The problem right now is that wages haven't kept pace with inflation like they have in the past. Wages in the US for example were so flat that some people who were empl

              • by mark-t ( 151149 )

                Or do you think that it's right to pay people that work full time hours anything less than a wage that is enough to actually live on?

                That depends.

                Wrong answer.

                The problem right now is that wages haven't kept pace with inflation like they have in the past.

                Of course... and the solution to this is to start actually paying people fairly, not to compound the problem by not paying them right just because it might cause a momentary dip in the highest paid's bottom line who could afford it anyways. In the long ru

                • by Mashiki ( 184564 )

                  Wrong answer.

                  No, that's the right answer. Regulation in general works in a negative way, especially in countries where a company can simply close up shop, export the job production and continue selling in that same country.

                  Of course... and the solution to this is to start actually paying people fairly, not to compound the problem by not paying them right just because it might cause a momentary dip in the highest paid's bottom line who could afford it anyways. In the long run, the improvements in productivity that result from better wages more than make up for the financial losses. Ford figured that out a century ago.

                  And how do you determine what is "fair" to pay a person for their labor? Right, and that's your wrong answer wrapped up into a tidy bundle. The theory your proposing hasn't worked out anywhere at all, and in fact acts in a negative fashion.

                  • by mark-t ( 151149 )

                    If a job is so menial that it doesn't justify paying a person to do it a decent wage if they are doing it full time, then it's not a job that should be done by people at all.

                    If that's not an option, then if society still needs the job to be done, then it follows that it must be worth paying someone a decent wage to do it... and how mundane anyone else might find that job to be is irrelevant.

                    To suggest otherwise is to treat people who work at such low paying jobs as less than human.

                    • by Mashiki ( 184564 )

                      If a job is so menial that it doesn't justify paying a person to do it a decent wage if they are doing it full time, then it's not a job that should be done by people at all.

                      Really? Seems to me most people like to have purpose in their lives, like to work. Many of those menial jobs, were filled by people who failed education or have mental problems. Gives them a chance to function in society, work with people, humanizes them.

                      If that's not an option, then if society still needs the job to be done, then it follows that it must be worth paying someone a decent wage to do it... and how mundane anyone else might find that job to be is irrelevant.

                      This is wrong. The definition of "decent wage" is never defined, a person who works as a janitor will never make the same as a person who's a line selector. But both jobs have value to the person in question.

                      To suggest otherwise is to treat people who work at such low paying jobs as less than human.

                      No, to treat a person being paid such a job

                    • by mark-t ( 151149 )

                      The definition of "decent wage" is never defined....

                      I would define as being, at a bare minimum, whatever "living wage" is presently defined at.

                      ... a person who works as a janitor will never make the same as a person who's a line selector.

                      I never suggested they should be paid the same. I suggested that they should both be making a decent wage, which means that they are both making *AT LEAST* enough money to functionally live on (if they are working full time, that is... if they are not, then the amount t

                    • by Mashiki ( 184564 )

                      I would define as being, at a bare minimum, whatever "living wage" is presently defined at.

                      That's called "the poverty line" and the minimum wage is generally pretty close to that level. That also means $15/hr in san fran, ca for example will mean you're poorer then the person working in macon, ga at $8/hr.

                      I never suggested they should be paid the same. I suggested that they should both be making a decent wage, which means that they are both making *AT LEAST* enough money to functionally live on (if they are working full time, that is... if they are not, then the amount they make should be proportionally less), independently, in society without further depending on any government assistance or subsidization.

                      Except that's where this always ends up in this line of reasoning. A "decent wage" is variable to the person. If I lived in Toronto, Ontario and was making $120k/year I'd barely be making ends meet, that's around $55/hr. On the other hand if I live in Ingersoll, Ontario and making $120k/year

                    • by mark-t ( 151149 )

                      That also means $15/hr in san fran, ca for example will mean you're poorer then the person working in macon, ga at $8/hr.

                      While I can't speak to the particulars of the wages that you are citing, did I say anything that suggested I meant otherwise?

          • You might want to re-read your links, as they don't really say what you claim they do.

            But even taking your claims on face value, 60,000 represents 0.4% of Ontario's total population. The remaining 99.6% is better off (overall wages for the province are up), as will be that 60,000 in the long run. That's a pretty good trade-off.
          • by Uberbah ( 647458 )

            Tell it to the 60k people in Ontario who lost their job when the minimum wage was increased by $2.40/hr.

            Problem: the "job losses" opponents of minimum wage cry about are almost entirely due to people being able to work at one or two jobs to get by, instead of two or three. As for the remainder, if your business doesn't pay a living wage, your business doesn't deserve to exist. And you never talk about the job increases due to all the money going into local economies, because workers have more money to spe

      • No, it shows the problem with increasing minimum wage by a large amount once every 10 years, which is basically what the US has been doing since 1980, instead of having small increases every 1-2 years. You can argue that $15/hour is too high, but based on the past 50 years or so, minimum wage should be around $10/hour now. In the 1960's and 1970's, minimum wage went up 10 cents almost every year (up to 20-25 cents per year by 1980). After 1980, it went up every 10 years instead (except for one shorter gap o
      • by Uberbah ( 647458 )

        This just shows the problem with creating a really high minimum wage.

        Few things are quite as American as describing an increased standard of living for the working class as a "problem".

        Everyone who was already making that amount will want a raise, too.

        That's a feature, not a bug.

        I hope Amazon loves the results of their social experiment. It will only prove to them how over-employeed they are and push for even more automation

        Do you like your corporatist boots black, or do you like them with a bit of sugar

  • Oh hold me back! /s

  • by Anonymous Coward

    That sounds excellent for their employees. How about for once, we give Amazon some credit for this.

    There will probably be many opportunities to excoriate Amazon in the future. Let's see.

  • by Anonymous Coward

    Cause and effect, no unions in Amazon is like a person without an immune system. This is just anti-biotic shot that is for PR stunt.

  • by Anonymous Coward

    $100.......That is kind of weak.

    I remember most people in Brazil when I was there 30 years ago seemed to get an extra paycheck during the holidays. It was the way people could have a little extra during a special time and helped families avoid the financial strain at the end of the year.
    Made it easy to pay of debts, get presents, have money for visiting family.

    I always found that system to be a great way to help with the spirit of people at the end of the year.

  • This is like... (Score:4, Informative)

    by ytene ( 4376651 ) on Thursday October 11, 2018 @08:04AM (#57460266)
    ... "Congratulations, peons!!! Your terms and conditions have just been upgraded from abject slavery to indentured servitude!"
  • by Anonymous Coward

    Ezra, you've had good attendance. I bet you thought I'd forgotten your Christmas bonus. Here you go!

    Ezra: "A hundred dollars. Maybe I'll go to the movies... by myself..."

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