Amazon eliminates monthly bonuses and stock grants after minimum wage increase

[nir]

Some employees claim they will make less money after the wage increase

 

Amazon garnered praise for raising the minimum wage for its hourly workers to $15 yesterday, but the widely-publicized move also came at the expense of monthly bonuses and stock options. The company explained its decision to shift to a new stock purchase program in the announcement blog post yesterday, citing that hourly employees preferred the “predictability and immediacy of cash to RSUs,” or restricted stock units, but the post doesn’t mention the loss of monthly incentives, which Bloomberg reported earlier today.

 

Several Amazon warehouse employees have criticized the move, stating they would actually be losing thousands in incentive pay. Currently, warehouse workers get two shares of Amazon stock when they’re hired ($1,952.76 per share as of writing), and an additional stock option each year. After the changes take effect, the RSU program will be phased out for stocks that vest in 2020 and 2021, and it will be replaced with a direct stock purchase plan by the end of next year.

 

An Amazon warehouse worker told The Verge via email that the news was devastating to fulfillment employees, many of whom depend on their RSU and VCP (variable compensation pay, a performance-based monthly bonus program) incentives on top of their hourly wages. VCP incentives, which are dependent on good attendance and hitting productivity targets, could get Amazon workers an 8 percent monthly bonus, and a 16 percent bonus during the peak November and December seasons.

 

Amazon workers have been responding to Sen. Bernie Sanders’ tweet praising the minimum wage raise, citing that on November 1st, many workers will have their paychecks cut, not raised.

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

Many Amazon warehouse workers are criticizing the pay raise as a publicity move as well as a political play, and it’s to be seen if getting rid of incentive pay is actually in the interest of workers. However, the company insists that the changes are for the benefit of employees.

 

”The significant increase in hourly cash wages more than compensates for the phase out of incentive pay and RSUs,” Amazon’s spokesperson said in an emailed statement to CNBC. “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.”

 

Source

[Ha91]

More profits for the owners of Amazon. Wow.

This is called Capitalism.

[steven36]

1 hour ago, Ha91 said:

More profits for the owners of Amazon. Wow.

This is called Capitalism.

Amazon are beyond Capitalism there what you would call a Monopoly.

 

49 Companies Amazon Could Destroy (And 1 It Already Has)

https://www.kiplinger.com/slideshow/investing/T052-S001-49-companies-amazon-could-destroy-1-already-has/index.html

 

Companies  and states  that drive minimum wage up causes small Companies that can't afford to pay there workers this much to close or to leave the area or ether replace them with automation  .  States  that are increasing minimum wage  toward $15 are also raising  taxes so the cost of living goes up and in reality your no better off than you was before.

 

What's hidden under the $15 minimum wage? Higher taxes.

http://www.business.rutgers.edu/business-insights/whats-hidden-under-15-minimum-wage-higher-taxes

 

Only reason Amazon raised there pay to $15 was because of a leaked video showing how they treated there workers poorly  and  how they was against the union and workers rights .. it  was a ploy to make Amazon look good in the media,  many states are raising minimum wage and they will be at this in a few years and it will mandatory for Amazon to pay this anyway.  Some places pay more than $15 long before Amazon did and they have good benefits and workers rights because they have a union . In a non union company that  pay $15 they cut out most of your benefits  this is no big deals as many states drive toward $15  all jobs will be forced to pay a higher wage . You just get paid more to be treated like crap  but most of you wage increase  will go too state and city taxes so it's absorbed into the system. 

[Ha91]

True. That's why I said that these rascals did this to save their faces publically and ended up gaining even more profits. Fucking assholes. I hate such fucking capitalistic games :@

[vitorio]

That is an excuse for Amazon or any other employer. They were going to do it anyway. This increase in hourly pay, maybe was the excuse to ido it at this time.