Amazon sent a letter to U.S. Sen. Bernie Sanders assuring him that the company’s new $15 minimum wage and pay structure will result in increased compensation for all warehouse workers.
Amazon’s senior vice president of Global Corporate Affairs, Jay Carney, told Sanders that “all hourly operations and customer service employees will see an increase in their total compensation,” in a letter shared with GeekWire.
Sanders had been hammering Amazon over its treatment of fulfillment center workers for weeks but applauded the company’s surprise announcement that it would raise its minimum wage to $15 per hour. But he asked Amazon for more information after some workers complained that changes to their compensation associated with the wage hike would actually result in less take-home pay.
Carney told Sanders the hourly raise “more than compensates” for the stock awards and monthly incentive bonuses the company is phasing out. Those changes have left some warehouse workers skeptical that they will actually receive raises overall.
It isn’t entirely clear how Amazon will make up for those lost income sources for warehouse employees who were already making $15 an hour or more. Amazon plans to give those workers a $1 per hour raise but many say that will amount to less overall income than their bonuses and stock units provided.
Amazon is planning to implement a program that allows employees to buy stock directly in 2019. Employees who already have stock grants vesting in 2019 and 2020 will be allowed to keep them.
“Again, all hourly Operations and Customer Service employees will see an increase in their base pay, as well as in their total compensation,” Carney said in the letter. “We also are proud to continue to provide our industry-leading benefits, including comprehensive healthcare, up to 20 weeks of paid parental leave, and our Career Choice program, which pre-pays 95% of associates’ tuition for courses in high-demand fields.”
The Washington Post first reported on Amazon’s letter to Sanders. Continue reading for full text.
Amazon Sanders Letter by on Scribd