What is the Amazon Minimum Wage?

Amazon Minimum Wage

Amazon is the world’s largest online corporation and a prominent enterprise. This American retailer was founded on July 5, 1994, by Jeff Bezos 27 years ago. Nowadays, it is headquartered in Seattle Washington in the United States of America. It became the world-famous and most valuable brand because it gives the best customer experience. There are more than 3 Crore brands on Amazon and about 13,35,000 employees working on it. Let’s see about Amazon minimum wage.

Amazon Minimum Wage

Amazon is one of the largest estimated corporations in the world that has declared wage tips for its employees. According to the 2018 announcement, Amazon will assure to pay a minimum wage of $15 per hour to all its employees. This is twice the minimum wage of $7.25 which has been demanded by the government of the United States.  This declaration has an optimistic significance for workers all over the world. It is also reasonable for democratic statesmen like Bernie Sanders who has been persuading Amazon to carry these actions for a very long time.

In 2018, Amazon raised about 4.7% of the wage and announced to pay minimum wage to at least $15  for an hour among the employees. Amazon declared openly that it would proceed to pay all US employees, including part-time, seasonal, and provisional workers, at least $15 an hour and all UK hirelings at least £9.50.

The reason behind the raised minimum wage of $15

  • According to the company’s strategic plan, there are 250,000 American employees and 100,000 seasonal workers in Amazon. This decision affects their life deeply. In this view, Amazon’s consideration to increase wages is reasonable, by which the lives of thousands of workers influenced who paid low wages. 
  • A current population survey of the USA shows that there is a significant change and growth observed due to entry-level salary after amazon’s decision. Some explanations that are overheard from the labourers of Amazon, their families, and the communities they live in: Our starting-wage advancement supported local economies across the country by profiting not only our workers but also other employees in the same community.
  • Non-Amazon workers also profited from Amazon’s wage improvement. The analysis found that Amazon’s conclusion to give its beginning wage to $15 had shown a positive result on other wages in local labour markets where Amazon regulates. The company’s promotion resulted in a 4.7% improvement in the average hourly wage among the other employers in the same labour market.
  • Increasing minimum wages up to $15,  reduces the rate of extensive job loss quantity. The study reflected no considerable career losses after Amazon and other local employers raised their starting wages. There is hardly 0.8% of job losses after the increased hike.
  • Wage improvements were significant and real. Since Amazon raised its starting wage more than 2-3years ago, Americans have been compelling the legislature to raise the national minimum wage, which has been stable since 2009 at $7.25. This survey and different analyses provide information that modernizing the minimum wage can have a favourable impact on families and fuel economic development in communities throughout the country.
  • Amazon has also undergone long invasions from emissaries like Bernie Sanders, who inaugurated a bill called the Stop BEZOS Act. According to this legislation, Amazon is compelled to raise wages by taxing their workers when they need to rely on public benefits like food stamps.
  • Amazon is the second-largest enterprise in the USA; Which provides an extended field of career services to its civilization. Amazon wage boosting enhances more people to work as an employee. There are a lot of clients who are low-wage workers in another retail store. The company becomes more demanding and solicited by the workers, after the increases of the minimum wage.
  • At the end of 2018, Amazon expected to convey an announcement about the location of its expected second headquarters. The giant company will imagine choosing a city that is highly advanced and implemented. The company will aim that the government may approve its announcement and deals. But there must have been some positive points which influenced the government authorities to accept the deals of the second headquarters. So the retail ascertaining a $15 minimum wage helps to alleviate some of that possible future disapproval.
  • However, there is a possibility if the other competitors of Amazon hire more employees at the store. And the labour tax of the opponents goes up, then a vast amount of goods are sold there thereby allowing to earn more. But Amazon is a technology-based company. It has humanless services. Amazon only hires people for their storehouse who work under minimum wage. So raising the minimum wages is an act of art to attract more people to shop goods online and from the store.
  • Till now in the USA, Amazon is the only company that conducts human-less stores. They are attempting to develop and innovate more information and technology which give valuable nourishment for others. Over some time, online goods will become much cheaper and will hence be a more impressive suggestion from the consumer’s sense of view. So Amazon increases the minimum wage so that more people are attracted to work and buy more.
  • Studies show that Amazon published its announcement on a strategic basis. Many of the analysts acknowledge that the announcement timing of Amazon is also strategic and favourable. Amazon made its announcement in July of 2018. There is also a benefit that:- 

In October the main work or regular workers of all competitors are on leave and other retailers are about to start engaging temporary workers for their vacation. On holidays there is a lack of temporary workers in the market. Since Amazon confirmed the announcement of minimum wage at the immediate last moment there is no time for the opponents to pursue provisional workers. So the positive impact on Amazon is that the few temporary workers available in the market prefer to work for Amazon for its increased minimum wage.

  • Amazon is very conscious of its political damage and issues. Previously, the company was alleged that this organization was labouring more and paid a little to its workers. It did not spend towards its workers a living wage. This is the reason due to which many regular workers who were working full-time jobs at Amazon could not give time to their families. Secondly, it also alleged that the working circumstances at Amazon were more offensive and unpleasant. After resigning several professionals and workers reported that they were suffering from pressure and stress after working a few years with Amazon.
  •  Amazon had to spend a lot of money to protect its status and maintain its reputation. This is the reason why this wage rise has become a public figure. People all over the world and on social media are discussing Amazon’s positiveness. Also, since the opponents will not be competent to conform to Amazon’s liberality, people will come out having even more positive reviews for Amazon.
  • The rising wage of Amazon attracts faculty or gives increased reimbursement for their work as a stimulus to help industry growth. Increased money supply means employees have given more potential to their work. Which results in the company’s growth. 
  • In the recent 2020 during the Covid-19 pandemic, the increasing minimum wage attracts more individuals to participate as an employee. This implies increasing goods and services.
  • In other words, Amazon increases its wage according to its future purpose. It aims to achieve about forty million workers by 2025. 

Conclusion

Amazon’s labor policies and its conclusion to improve wages are representative of wider improvement. Its increasing minimum wage decision not only improves the income of Amazon but also bridges the economy of the USA country. Nowadays, Amazon gets its prosperity and popularity due to its innovative technologies and great investments. From all these above explanations,  Amazon’s opinion to increase wages for the workers has been reasonable.

What is the Amazon Minimum Wage?

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