Economy

Amazon raising minimum wage to $15 for all US employees

Amazon raising minimum wage to $15 for all US employees

The company said Tuesday that the wage hike will benefit more than 350,000 workers, which includes full-time, part-time, temporary and seasonal positions.

It's unclear how the minimum wage increase will bolster Amazon's median compensation for its workforce, but it's safe to say it's headed up. "Bernie Sanders (I-Vt.). After Amazon workers in Germany, Spain, and Poland went on strike in July to protest working conditions, Sanders slammed Bezos for earning "$275 million a day" while "Amazon workers are afraid to take bathroom breaks at work and are grossly underpaid.

The authors stress that, while they can identify workers exiting minimum wage status, they cannot assess the extent to which those individuals are also exiting low-paid employment. "That Amazon is now setting a company-specific minimum wage is evidence of its changing character as a company".

Fight for $15, a coalition of fast-food, retail and other workers, sprung up in New York City in 2012 and has since expanded into a global movement with activists in more than 300 cities around the world.

Pay for warehouse workers at Amazon can vary by location.

The wage increase takes effect next month.

The wage increase will come into effect from 1 November and will effect more than 17,000 workers in the United Kingdom and more than 20,000 seasonal temps and agency workers, who will also receive the higher wage. The increase will echo through companies owned by Amazon, such as Whole Foods.

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"As someone who has introduced a $15 an hour federal minimum wage, I very much look forward to working with him in this area", Sanders said. Low wage employees have been asking for more cash to be immediately available instead of having to wait years to make use of their full compensation.

The announcement was enough to soothe one of Amazon's fiercest critics: Sen.

At the same time, Storch said, the wage increase will widen the gap between the healthy retailers, such as Amazon, Walmart and Target, and the struggling ones, which won't be able to afford to compete on salary. While their role in US culture might be large, their share of the labor market is still fairly small. Unemployment in the U.S.is 3.9 percent, near an 18-year low. This past spring, it raised its starting hourly pay for its workers to $12. Analysts said the raise would cost it $US1 billion or less annually but would be offset by a recent $US20 increase in the cost of its Prime memberships.

"It's really been incredible", Clark said. Carney previously served as President Barack Obama's White House Press Secretary.

"Why shouldn't we get it too?" she said, referring to Amazon's raise.

"We have seen a labour market that is becoming better and better for job seekers, and harder and harder for employers", said Martha Gimbel, director of economic research and job site Indeed.