Amazon Raises Minimum Wage To $15, But Is It Worth The Cuts?
Amazon announced that it would begin paying a $15 minimum wage this week, but the increase comes at a cost.
The part that Amazon did not publicize as much is that warehouse workers won't be getting a few of the perks that they enjoy now.
Amazon has decided to cut monthly performance bonuses to workers. They have also decided to end a program that gave shares of Amazon stock to employees who stayed with the company for a determined amount of years.
The bonuses are not a huge deal in this, but the stock program is a huge loss. Have you ever heard the saying, "Give a man a fish and he'll eat for a day, but teach a man to fish and he'll never be hungry again."
Think of the stock program as a fishing lesson. Amazon stock is one of the most valuable on the market, and it shows no sign of slowing down.
Amazon has said that it will replace the current stock program with something, but no details have been given yet.
The "Fight For $15" movement is about a livable wage. Companies that decide to increase their pay are doing the right thing in my opinion. The problem is if a huge company decides to use the minimum wage as an excuse to cut people or employee benefits.
I'm not an accountant, but I can confidently say that Amazon is not going to be put out of business by a higher minimum wage. In fact, I think if you took all of the money spent on a higher minimum wage, it might equal one of the annual bonuses received by top level Amazon management.