Dave Clark, the senior vice president of Amazon whose s operations in-charge, recently made the announcement of a raise in the pay for the employees. The announcement was followed by cheers and high fives by the employees. The new minimum wage will be $15/hour.
Mr. Clark has also shared a video on Twitter about the meeting wherein the issue was discussed. Senator Bernie Sanders was seen criticizing the treatment met to the Amazon employees and praised the pay raise. The video got around half-a-million views.
However, the workers are not so happy with the raise. They think that by increasing the wages, Amazon is cutting on monthly bonuses and new stock options that will ultimately lead to decrease in their annual pay.
Amazon is now working on ways to close the gap. Jay Carner, the in-charge of Amazon public policy, received a letter from Mr. Sanders inquiring about employee compensation. However, there is no response from Amazon yet.
As per Amazon, the higher wages will be sufficient to compensate for the incentive and stock bonus phase out. The pay raise will be more predictable and immediate. On the whole, around 350,000 workers will benefit from the change. Estimates by Deutsche Bank show that the increase in pay represents not even 1% of the projected 2019 revenue of the company.
Amazon officials are ready to adjust the pay so that the workers do not lose money because of the changes. The employees can use the stock options from two years ago to earn compensation this year.
There is misunderstanding among the employees which has resulted in the hue and cry. There is further dispute over the Variable Compensation Plan that gave 4% bonus on account of attendance and target achievement.
The workers also got shares worth combined $3,725 at current market value. The workers are hoping for the return of such schemes.
Source: Msn.com, Sdailynews.com