Amazon's workers criticize the new wage system, 'monthly income decreases as hourly wage increases'

By Scott Lewis

On Amazon in the US it is decided to raise the minimum wage of all employees above $ 15 per hour (about 1700 yen). This will be a dramatic increase from the previous minimum wage of 7.25 dollars (about 830 yen), but among employees there has been a criticism of criticism that "monthly income will decrease".

Amazon Eliminating Bonuses, Stock Awards to Help Pay for Raise - Bloomberg
https://www.bloomberg.com/news/articles/2018-10-03/amazon-eliminating-bonuses-stock-awards-to-help-pay-for-raises

Amazon eliminates monthly bonuses and stock grants after minimum wage increase - The Verge
https://www.theverge.com/2018/10/3/17934194/amazon-minimum-wage-raise-stock-options-bonus-warehouse

On 2 October 2018, Amazon announced in blog on November 1, 2018 that Amazon wants to raise the minimum wage of all employees in the US to more than $ 15 / hour (about 1700 yen) per hour. This change affects more than 250,000 employees and over 100,000 workers over a period of time, and Amazon says "the income of all employees has increased and that family benefits as well" .

Amazon Raises Minimum Wage to $ 15 for All US Employees
https://blog.aboutamazon.com/working-at-amazon/amazon-raises-minimum-wage-to-15-for-all-us-employees

Regarding this change, CEO Jeff Bezos says, "We listened to the criticisms and decided to do wage reform at the forefront as a result of thinking what we wanted to do." Also, Jay Kearney, senior vice president of Amazon Global Corporate Affairs, said: "We support an increase in the minimum wage that will have a positive impact on the lives of tens of millions of people, including domestic employees and their families." I said.

It is a change this time thought that if it is simply thought that "If hourly wage goes up, it is wonderful", but in fact it is becoming clear that there are circumstances that can not be rejoiced by letting go. Employees have revealed that with this change the minimum wage will be raised and at the same time a monthly bonus paid according to actual results and periodically you can receive Amazon stocks The stock option system etc. which had been done are to be abolished, and it is found that even if the hourly wage goes up, if you think at the monthly income and the annual income level, it will become a real income decrease.

Until now, at Amazon's fulfillment center, bonuses of 8% have been paid in the ordinary period and 16% in the busy seasons in November and December, depending on the worker's attendance status and the status of cleared productivity goals . For example, if the employee has a monthly income of 200,000 yen, a bonus of 16,000 yen or 32,000 yen has been paid, but after November 2018 all of these are cut.

By thisisbossi

Also, when employed by Amazon, employees have been paid 2 shares of Amazon shares with a par value of about $ 2,000 (about 230,000 yen). In addition, although there was a system that one new stock is paid once a year, these systems will be abolished. After that, a program to sell shares directly to employees will be provided.

Amazon's employee tells The Verge that the news is shocking to employees at the fulfillment center that received incentives for monthly bonuses and stocks. " Also, some of the employees said that "this is a political act" about Amazon's decision this time, and wage cuts exist behind the harsh key words "raising the minimum wage", substantial labor costs There is also a view that criticizes that it is a reduction measure.

About this view, Amazon spokesman said, "By raising the minimum wage, all time workers will receive a total wage increase, plus that in the future it will not be an incentive based pay system, so wages will be and it will "become predictable easy to form a more immediate commented .