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Amazon raises minimum wage to $15 for all US employees

By CNBC

The new minimum wage will benefit more than 250,000 Amazon employees — including part-time and temporary employees — the company saidRead full story

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  • Great for Amazon but what about the third party logistics and shipping companies they outsource to fulfill orders? This was a bare minimum effort to do the right thing. Wage is only a small problem with the culture at Amazon. Poor working conditions and a heartless culture of treating the employees with no respect should be addressed too.

  • In addition to the comments here, I would suggest that while this is good for the affected workers, this might be a strategic move on Amazon’s part to put more margin pressures on competitors by forcing them to be competitive and/or deal with public pressure. Without being too cynical, I think this might be a rational decision, rather than one motivated by principles of treating people equitably. And, as another commenter noted, there are many more issues Amazon has a responsibility to deal with, given its size and impact.

  • I don't think Amazon has suddenly found their moral Compass. If anything this is Bezos going three steps ahead of a potential federal investigation into tech company practices. He knows Trump is out for revenge and he's making sure they can't nail Amazon because of low wages. The key here is the fact that the increased wages only affect their US force. America First safeguard against Trump.

  • A leader’s first responsibility is to take care of his or her people. A living wage is a good place to start.

  • Amazon also says it will start 'advocating' for an increase to federal minimum wage. Now that it apparently has gotten religion on min wage, it will be interesting to see if the company brings the same disruptive energy to that issue that it has brought to everything it has touched on the money-making side of the equation.

  • It was hard for Bezos to wiggle out of the optics on this one--so not surprised to see some movement. That being said, he didn't have to go with something this costly. Whether he's got an alternative agenda or not, hard to argue that this will help thousands of workers across the country.

    I think for any other company, this kind of hit to margins would drive down the stock price noticeably. Amazon is down a fraction of a percent in pre-market trading. Because, come on. It's Amazon, who cares about profitability.

  • There may be a portion of this that’s optics, but not very much. Amazon needs a lot of people to do fairly basic work. They’re getting harder to find as the labor market continues to tighten. By setting the base a couple dollars ahead of where the competition for workers are, you can attract workers and also insulate yourself from poaching.

    Then there’s the piece with political optics which is 100% not. Advocating for a minimum wage that’s higher than the present minimum but below what you pay hurts

    There may be a portion of this that’s optics, but not very much. Amazon needs a lot of people to do fairly basic work. They’re getting harder to find as the labor market continues to tighten. By setting the base a couple dollars ahead of where the competition for workers are, you can attract workers and also insulate yourself from poaching.

    Then there’s the piece with political optics which is 100% not. Advocating for a minimum wage that’s higher than the present minimum but below what you pay hurts your competition. This is aimed at Walmart and Target. To hurt their bottom lines. This is not some turn of the leaf, this is down-and-dirty business while claiming the high road.

    All in all strictly a business decision. Wrapped nicely in altruistic motives, but wrapped so thinly you can see clearly through.

  • Glad to see this part, too: "Some employees who already make $15 per hour will also see a pay increase." Kudos to Amazon, but not sure this is a case study for all companies, because this is a company that can clearly afford to make these kind of changes.

  • Impossible for Amazon to do anything right according to some people. It's incredible. Also, a federal minimum wage raise is a terrible idea. The proper minimum wage in rural Kentucky is wildly different from the proper minimum wage in Seattle. States, counties, and cities should be in charge of their minimum wage. The cost of living and the profit margins are too varied across the country for the federal government to decide on one minimum wage.

  • It makes you wonder- if Bernie Sanders didn’t spotlight this issue back in August, would Bezos still have made this move? Wages and work conditions have been problematic for Amazon warehouse workers in the US and abroad since 2013.

    On the flip side- this set a good precedent for political leaders to leverage their influence and hold large companies accountable on important social issues going forward.

  • Bezos has figured out that if he pays a higher wage he can slow turnover and stabilize his workforce. Once accomplished, he'll be able to lay off middle managers.... Thus creating a flat and more efficient organization!

  • Increasing wages is one part of the puzzle. It might cause current employees to stay and might be attractive to people who need something extra for the holidays. What about benefits, culture of the workplace, growth and advancement and the other aspects of employment. I’m guessing Amazon is just going to be about logistics and delivery times.

  • Tough to see this as completely altruistic, but hope so. The news continually reports on the head-spinning wealth of Amazon and Bezos and this could be a way to cool down potential negative attention from the left, regulators, and socially conscience consumers. Agree with other commenters around this also being a way to squeeze margins tighter on competitors leading to more profits and consolidation in the long run. Exciting for the workers and families who benefit. I am very much a fan of Amazon

    Tough to see this as completely altruistic, but hope so. The news continually reports on the head-spinning wealth of Amazon and Bezos and this could be a way to cool down potential negative attention from the left, regulators, and socially conscience consumers. Agree with other commenters around this also being a way to squeeze margins tighter on competitors leading to more profits and consolidation in the long run. Exciting for the workers and families who benefit. I am very much a fan of Amazon but am more so a fan of companies who prioritize the welfare of their employees - Amazon has the means and the clout to push the “livable” wage conversation forward regardless of the driver.

  • Amazon is using their power to help American families boost their income; Fighting against the upside down bubble we call American Inflation.

  • Every decision is strategic especially if it’s made by amazon. It can still be good.

  • Definitely a strategic move to ease political pressure, but good on them. Such a large company increasing wages will help drive wages up for competitors in the job market. Now, if only they can implement affordable health insurance coverage and make it available for all employees, I think we'll start to see it encourage others to do the same.

  • I wish I could give kudos to this move by Amazon but profit sharing would be the better plan. Why not give bonuses to employees of up to 2.5 times their wage for performance and profitability? That way, if profits are low, it doesn’t lead to layoffs and if profits are high, employees get part of the rewards.

  • Rajesh is right. This is an aggressive business move. Also, while Amazon can afford $15 an hour, their competitors may not. Getting the federal government to make it mandatory could relieve Amazon of competition.

  • I don't grasp why so many aren't making the leap from human labor to automation. As the cost of human labor increases, the job gets replaced by automation. That's not a political point of view nor economists' theory... It's just common sense. When it's $5 to get my lawn cut, I'll pay a neighborhood kid to mow the lawn - when it's $20, I'll do it myself - when it's $40, I'm getting that lawn robot service.

    Raising labor job wages is a nice PR move (obviously) but why so many blind to the fact that

    I don't grasp why so many aren't making the leap from human labor to automation. As the cost of human labor increases, the job gets replaced by automation. That's not a political point of view nor economists' theory... It's just common sense. When it's $5 to get my lawn cut, I'll pay a neighborhood kid to mow the lawn - when it's $20, I'll do it myself - when it's $40, I'm getting that lawn robot service.

    Raising labor job wages is a nice PR move (obviously) but why so many blind to the fact that it's being done while they test robots on warehouse and shipping floors. The wage hike looks nice while accelerating eliminating the labor entirely.

  • Now they can buy more Amazon things this is great

  • I applaud any employer that truly cares about the financial health of their employees. A robust economy and workers with more discretionary income equals continued potential for growth. The minimum wage did not begin as a primary source of income. Just as Social Security was never intended to be a sole source of retirement income. But things are always changing. These changes have to be addressed in one way or another. One investment that many recommend is some form of a secondary education. This

    I applaud any employer that truly cares about the financial health of their employees. A robust economy and workers with more discretionary income equals continued potential for growth. The minimum wage did not begin as a primary source of income. Just as Social Security was never intended to be a sole source of retirement income. But things are always changing. These changes have to be addressed in one way or another. One investment that many recommend is some form of a secondary education. This can include vocational training as well. The returns on such investments are more than just monetary. An employer with the dilemma of not finding a deep pool of poorly educated and somewhat limited workers is to me a very attractive dilemma indeed.

  • Amazon is following suit after Walmart raised wages, which is great. Two of the biggest retailers and also employers in many state raising wages proves that the economy really is growing. I top of that thus puts more pressure on other employers to follow suit if they want to retain their own workers.

  • This was a good start. Thank you!

    Now, please don’t stop.

  • It’s all about greed on Amazons part. I you have ever tried to operate a business during a low unemployment time you do what you have to do to protect Christmas sales. Give the credit to the ones that engendered this business environment. Basic 101 economics shortage of labor increases demand and higher wages.

  • I support Amazon’s decision to raise the minimum wage to $15.00 an hour. At one time many Americans could buy a house, a car and a few enjoyable items. As a child I think it is nice to have a backyard, house and neighbors who will be around for more than a few years. This reality is getting harder to achieve for all Americans. I think raising the minimum wage puts the heart where it needs to be.

    My taxes will be higher. I will not be able to buy as many things. My travel could be limited to some

    I support Amazon’s decision to raise the minimum wage to $15.00 an hour. At one time many Americans could buy a house, a car and a few enjoyable items. As a child I think it is nice to have a backyard, house and neighbors who will be around for more than a few years. This reality is getting harder to achieve for all Americans. I think raising the minimum wage puts the heart where it needs to be.

    My taxes will be higher. I will not be able to buy as many things. My travel could be limited to some camping trips. At least I will have a house that I can call my home.

  • Jeff Bezos can run his businesses the way he wants, and pay those who choose to work for them what he likes. He needs no advice or permission from Bernie Sanders, or any of us.

  • Amazon is competing for talent in a competitive labor market. This is a proactive move.

  • See? They learn. Only takes this long.

  • Step in the right direction.

  • This is a win for the workers, but we must be honest with how business works, as it's important for a company to keep good PR.

  • I want to see if the number of emoyees decreases in a year or two. Automation is coming and the way they work they'll be the first to implement it. Check back next year and see

  • Its a step in the right direction.

  • Amen. But treat them well. Benefits when possible.

  • New money entering into circulation is much better for the economy than hoarding.

    Remember the game of Monopoly ends for one reason, and one reason only, the bank runs out of money.

    If there was an endless supply of money, the game would never end.

    The distribution of a certain amount of ones wealth is a good thing, especially when it lifts the standard of living of all workers in a growing robust economy.

    The middle class don’t hoard their money like the wealthy do, they spend it as fast as they

    New money entering into circulation is much better for the economy than hoarding.

    Remember the game of Monopoly ends for one reason, and one reason only, the bank runs out of money.

    If there was an endless supply of money, the game would never end.

    The distribution of a certain amount of ones wealth is a good thing, especially when it lifts the standard of living of all workers in a growing robust economy.

    The middle class don’t hoard their money like the wealthy do, they spend it as fast as they earn it, that’s why they are always wanting more.

    There must be new money constantly injected into the economy in order to for those who have already achieved great wealth to earn even more.

    Remember the old adage.

    One must spend money to make money, it is what is known

    as the Circle of Wealth.

    Few understand how this works, which is the reason why such a very few control most of the wealth in the world, sort of like how the game of Monopoly works, except this game has never yet run out of money.💡

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