Amazon’s Wage Hike Comes with Strings
Stephen Miller | October 10, 2018
Amazon workers in the U.S. full-time, part-time, temporary and seasonal will earn at least $15 an hour starting on Nov. 1, the online retail giant announced Oct. 2. But there's a catch or two, critics are pointing out. First, the good news: Amazon said the wage hike would benefit more than 250,000 of its employees, as well as over 100,000 seasonal employees who will be hired for the holiday rush. "We listened to our critics, thought hard about what we wanted to do, and decided we want to lead," stated CEO Jeff Bezos. Another positive: Money magazine's website reported that "Workers whose pay was already above $15 per hour will get hourly raises of $1, according to two people familiar with the matter who asked not to be identified discussing the company's compensation practices." The move "shouldn't come as a shock Amazon is in direct competition with other large-scale retail stores like Walmart and Target to employ the same group of workers, and these big-box retailers have been steadily raising wages over the last few years to attract and keep the best workers," said Michael Farren, a research fellow at the Mercatus Center at George Mason University in Arlington, Va. "Amazon hired 120,000 workers for the holiday rush last year and will be hiring even more this year, so the wage increase just makes economic sense, especially given the current low unemployment rate.