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article imageAfter backlash, Amazon raises pay for some longtime workers

By Karen Graham     Oct 10, 2018 in Business
Amazon is still working out the kinks in the minimum wage increase deal they gave employees. The e-commerce giant has been facing a backlash from its longtime employees, who say its $15 hourly minimum wage for new employees wouldn't benefit them.
As Digital Journal reported on October 3, many longtime warehouse workers calculating they would earn less with the elimination of bonuses and stock awards.
The company said Wednesday that some adjustments are being made this week and workers who already made $15 an hour will get more than the $1 an hour raise promised last week. The company also said the increase will differ by warehouse and would affect a small number of employees, but declined to say how many.
That "over a $1 raise" the e-commerce company is talking about is just barely over a dollar. An employee at a Maryland warehouse spoke to the Associated Press on the condition of anonymity for fear of being fired and said employees were told Tuesday that they would now get a raise of $1.25 an hour after Nov. 1.
The worker also said employees were told they would get cash payouts for reaching certain milestones. They'll receive $1,500 for staying with the company for five years and $3,000 after reaching their 10-, 15- and 20-year anniversaries. Amazon will also offer a direct stock purchase plan for employees starting in 2019.
At the time of the minimum wage announcement, Amazon said in a statement that the changes meant "compensation will be more immediate and predictable." The company, which operates over 100 warehouses around the country, said, "the significant increase in hourly cash wages more than compensates" the benefits that will be phased out.
More about Amazon, minimum wage increase, longtime employees, Backlash, Stock
 
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