The minimum wage increase for the hourly workers of the Amazon has a new trade off that there would be no stock awards and monthly bonuses for the workers. Amazon confirmed this message to CNBC by sending an email containing the message that company is now making itself free from the stock option rewards and other incentives to its workers and as an alternative it is increasing the wages of per hour workers to $15 per hour. However in the message, the company stressed that this increase in salaries more than the compensations and incentives is going to be a trouble in some other benefits.
In the emailed statement to CNBC sent by Amazon’s spokesperson, he said that there is a prominent increase in the cash wages per hour and this increase will be more than the compensations for the phase out of the restrictive stock units and incentive pays. He said that they can confirm all the hourly customer service employees and operations will have an increase in their total compensation once after this announcement has been made. Other than this, as there are no long term incentives strategies, the compensations to be given would be more predictive and immediate.
The workers who have got affected by this change in the pay structure would be given a chance so that they could clearly and carefully review the new salary structures and schedules and they would be free to share any concerns and suggestion that they might be having regarding the company according to the experience and familiarity with the matter going on. There were a lot of reports on Wednesday as the confirmation of this notification and those reports were from the warehouse employees of Amazon containing that they are going to put in less efforts as a result of this change in pay schedule.
This announcement was disclosed by Amazon this Tuesday and the announcement contained that stock awards program is going to be replaced with the least wages pattern because employees usually prefer immediate and predictable cash as compared with the monthly or annually stock awards. The company didn’t mention anything about the monthly bonuses to the employees. This announcement was a good publicity for Amazon that was recently criticized for the lower wages and bad working situations of the warehouses. This is a sudden news from Amazon.