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Amazon raising Minimum wage to $15.

2,226 Views | 20 Replies | Last: 5 yr ago by Jaydoug
BTHOB-98
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http://fortune.com/2018/10/02/amazon-minimum-wage-15-bezos/

1. Good PR move for them.
2. Work force is tight and this will help them get good employees who stay with less turnover.
3. They were almost averaging that already so it should not cost them much more. "...but last year Amazon's median pay was just $28,446, which works out to around $14 an hour. "
4. Somone at Amazon understands a cost/benefit analysis. They will get more from this than it cost them.
WestTxAg16
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AG
While I agree that this is probably a good thing for Amazon in the long run (even though you have to think they are slowly removing low paying jobs with technology, right?), median and minimum mean completely different things. So $14 median means midpoint or that half the employees are above and half are below $14/hr, correct?
Matsui
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AG
good for them. let them pay what they want
AggieStan
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PR

His next step to run for Presidency
Diggity
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AG
correct
southernskies
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WestTxAg16 said:

While I agree that this is probably a good thing for Amazon in the long run (even though you have to think they are slowly removing low paying jobs with technology, right?), median and minimum mean completely different things. So $14 median means midpoint or that half the employees are above and half are below $14/hr, correct?
Not if 20 people make $1,000,000 and 2,000 people make $28k. A few high earners can make up the mean salary for a lot of underpaid workers.
P.H. Dexippus
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Don't forget, after announcing this, Amazon disclosed that they are investing in lobbiysts to push through a $15 min wage on the rest of America.
62strat
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southernskies said:

WestTxAg16 said:

While I agree that this is probably a good thing for Amazon in the long run (even though you have to think they are slowly removing low paying jobs with technology, right?), median and minimum mean completely different things. So $14 median means midpoint or that half the employees are above and half are below $14/hr, correct?
Not if 20 people make $1,000,000 and 2,000 people make $28k. A few high earners can make up the mean salary for a lot of underpaid workers.
no one is talking about mean/average. Hence the word median.

The story is almost useless unless we know how many people were making less than $15 and what the wage was.
This may not have been that much of an increase for their bottom end. Perhaps $14 was the current minimum.
GTIAG09
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Can't wait for my suppliers to use this as a reason to raise rates.
94chem
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Well over half of their employees are getting a significant raise. Seems like a reasonable move for the world's wealthiest man.
AgBank
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In addition to the difference between median / min, the math on the $28k should be suspect.

I doubt Amazon pays overtime very often, so it is unlikely that people are working over 2,000 hours. Employing hourly workers has shown me how much work can be missed. So the real median hourly rate is likely already higher than $14.

drill4oil78
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Taking away stock and bonuses from these hourly workers. He who giveth can taketh. The money has to come from some where.
TennAg
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Amazon trying to weaken the entire retail sector looks like.
jpd301
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Quote:

Employing hourly workers has shown me how much work can be missed.
I'm curious what you mean by this. Can you explain please?
txagman1998
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https://finance.yahoo.com/news/amazon-employees-say-will-make-less-raise-174028353.html

Quote:

Amazon's decision to raise workers' minimum wage to $15 per hour was welcome news, even Sen. Bernie Sanders praised the move.

But for some Amazon employees, the excitement didn't last very long as they learned that existing financial incentives and bonus programs, including stock and monthly bonuses, that usually boost paychecks will be eliminated starting November 1.


Will be interesting to see how this affects worker output since now those workers that went above and beyond will get compensated the same as those that did the bare minimum. No wonder Bernie Sanders praises the move.
JSKolache
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Their HQ is the city of Two Tea Economics, so whadja expect?
94chem
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JSKolache said:

Their HQ is the city of Two Tea Economics, so whadja expect?
I googled "two tea economics" and got zero hits, so not sure what you mean.

IrishTxAggie
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94chem said:

JSKolache said:

Their HQ is the city of Two Tea Economics, so whadja expect?
I googled "two tea economics" and got zero hits, so not sure what you mean.


When all of the liberal cities were telling restaurants that they had to increase the minimum wage of the servers and workers, one dumbass said that it would only require the restaurant to sell two more teas/hour/server.
94chem
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Ah, okay. But this is totally different. A company deciding to pay its employees more really shouldn't bother anyone. Maybe you can't afford to pay your employees that much, and they all go to work for somebody else. So what. Seems like exactly the sort of laissez faire system everyone wants.
P.H. Dexippus
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94chem said:

Ah, okay. But this is totally different. A company deciding to pay its employees more really shouldn't bother anyone. Maybe you can't afford to pay your employees that much, and they all go to work for somebody else. So what. Seems like exactly the sort of laissez faire system everyone wants.

What's laissez faire about this?:
Quote:

We will be working to gain Congressional support for an increase in the federal minimum wage. The current rate of $7.25 was set nearly a decade ago," said Jay Carney, Senior Vice President of Amazon Global Corporate Affairs. "We intend to advocate for a minimum wage increase that will have a profound impact on the lives of tens of millions of people and families across this country.

https://www.nasdaq.com/press-release/amazon-raises-minimum-wage-to-15-for-all-us-employees-including-fulltime-parttime-temporary-and-20181002-00170
94chem
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Mr. AGSPRT04 said:

94chem said:

Ah, okay. But this is totally different. A company deciding to pay its employees more really shouldn't bother anyone. Maybe you can't afford to pay your employees that much, and they all go to work for somebody else. So what. Seems like exactly the sort of laissez faire system everyone wants.

What's laissez faire about this?:
Quote:

We will be working to gain Congressional support for an increase in the federal minimum wage. The current rate of $7.25 was set nearly a decade ago," said Jay Carney, Senior Vice President of Amazon Global Corporate Affairs. "We intend to advocate for a minimum wage increase that will have a profound impact on the lives of tens of millions of people and families across this country.

https://www.nasdaq.com/press-release/amazon-raises-minimum-wage-to-15-for-all-us-employees-including-fulltime-parttime-temporary-and-20181002-00170

Nothing, but you changed the subject.
Jaydoug
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AG
The market will determine if their choice was good or bad. Opinion don't matter.
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