04 Oct 2018_campuscad
Amazon, a trillion dollar company has increased the minimum wage for an hour to all US employees to $15 (INR 1050) from November 1, 2018.
The American e-commerce giant was continuously under fire due low hourly wages .and poor working conditions for its warehouse workers in the US.
To avoid the criticism, company created the fleet of twitter accounts of its real employees which continuously posting the positive review about retail giant working conditions and praising the Amazon.
Independent senator and former US presidential candidate Bernie Sanders criticized Amazon and its founder Jeff Bezos over the disparity between his wealth and Amazon workers minimum wage. Jeff Bezos earn around $1.7 million in compensation in 2017.
“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead and we’re excited about this change and encourage our competitors and other large employers to join us.” Said Jeff Bezos.
Amazon stocks doubled in .last 12 months and went from $1000 to $2000 per share which helps to enter into trillion dollar club with Apple (Read here in detail).
Amazon employs more than 250,000 full time and 100,000 seasonal workers in US alone. The minimum wage increment also transfers to Whole foods employees, the company acquired by Amazon last year for $13.7 billion.
Median wage for Amazon employee was $28,000 in 2017 as per the filings.
Federal minimum wage in US is $7.25 and many other retail companies including Walmart and Target increased their labor minimum wage to $11/$12 per hour.
Amazon founded back in 1994 as a book selling website and grows to world’s largest e-commerce giant by 2018 with $1 trillion market valuation. Google and Microsoft another tech companies running behind the Amazon with $850/$890 billion valuation.
Retail and consumer economy in the US is booming and the unemployment rate is as lows as 3.7%. So to retain the good talent and tight labor market with increasing market competition, company decided to take the step and increase the minimum wage for its workers.
Other side for the minimum wage increment may result into difficulty of getting the low skill jobs or fresher jobs where employer will not pay minimum wages to the employees or simply employer will not fill up the position.
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