Amazon Workers Could End Up Earning LESS After Pay Raise…. Losing Bonuses And Stock Grants
Posted: 9:13 am Friday, October 5th, 2018
By Danny Serrano
Amazon announced it was raising its minimum salary to $15 per hour this week, but that means they are scrapping bonuses and stock handouts.
At the moment, workers are given a single Amazon share worth almost $2,000 when they join and an additional share for every year they work. If they hold on to the shares for two years, they can cash them in tax free.
This scheme will be now phased out in favor of a “sharesave” scheme which will allow workers to buy shares at a discounted rate. Workers who had been waiting for their 2020 or 2021 stocks to be unlocked will have to buy them.
Meanwhile bonuses which allow staff to earn back 8% of their salary per month and 16% in busy periods around Christmas are also being cut.
Some of the Amazon staff claim they will actually earn less after the changes are phased in. One person said the workers will make $3,000 to $6,000 less per year now.
Amazon denied that any of its operations or customer service employees would be worse off after the switch. They say the wage increase “more than compensates” for the loss of bonuses.