On the heels of breaking $2000 per share and becoming the highest market cap company in the world, Amazon has announced that it will be instituting a minimum wage of $15 per hour for its workforce.
Amazon’s new $15 per hour minimum wage applies to more than 300,000 full and part-time workers at the company, most of which work in fulfillment at one of 100 fulfillment or sortation centers in North America.
Previously, many of these workers were paid around $11 to $12 per hour, an amount that is nearly double the federal minimum wage, but many argue doesn’t even come close to a livable wage. This, in addition to a reputation for heavily micromanaging its workforce, has led to reputation problems over the years.
The new wage of $15 per hour translates to an annual income of around $31,000 per year, which is a little over half the US median household income of $59,039 (in 2016). Amazon is known for offering plenty of overtime opportunities and does give bonuses to its workforce regularly in the form of products and even stock.
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Amazon has found its way to the headlines regularly for what some argue are poor working conditions. CEO Jeff Bezos announced following today’s news,
We listened to our critics, thought hard about what we wanted to do, and decided we want to lead. We’re excited about this change and encourage our competitors and other large employers to join us.
A source of ours confirmed that the news was shared with fulfillment workers this morning and will be made into official policy beginning next month.
