Amid pressure, Amazon hikes minimum wage to $15 an hour

Yesterday, Amazon announced it will raise its minimum wage to $15 for all of its 250k US workers, as well as some 100k seasonal workers, effective November 1, 2018.

Yesterday, Amazon announced it will raise its minimum wage to $15 for all of its 250k US workers, as well as some 100k seasonal workers, effective November 1, 2018.

Amid pressure, Amazon hikes minimum wage to $15 an hour

The decision comes amid mounting pressure from Sen. Bernie Sanders and others to provide better conditions for Amazon’s warehouse workers.

It’s a positive move, but it should be taken in context

Last month, Amazon’s market cap surpassed $1T; its CEO, Jeff Bezos, is worth upwards of $165B (roughly the GDP of Qatar).

Its fulfillment center employees haven’t fared as well. According to company filings, the average worker makes just over $28k (about $13.68/hr). In some states, as many as 1 in 3 workers are on food stamps. Some sleep in tents and cars, and struggle to make ends meet.

In a marketing video made by Amazon, this juxtaposition is clear: The company’s SVP of operations (who likely owns millions in stock) breaks the news to a crowd of emotional workers. “I’ll be able to take care of my kids,” one woman tells the camera, holding back tears.

It’s probably a corporate power play

Amazon has spun the move as a feel-good moral decision. But there’s likely an ulterior motive at play: By raising the minimum wage to $15, they put pressure on less-well-equipped competitors, like Walmart, to match the move.

The company has also cemented its intentions to lobby for an increase of the $7.25 federal minimum wage — a nice PR stunt ahead of its (presumably) tax-free HQ2 set to find a home later this year.

Topics: Amazon

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