Amazon eliminates monthly bonuses and stock grants after minimum wage increase
Source: The Verge
Amazon garnered praise for raising the minimum wage for its hourly workers to $15 yesterday, but the widely-publicized move also came at the expense of monthly bonuses and stock options. The company explained its decision to shift to a new stock purchase program in the announcement blog post yesterday, citing that hourly employees preferred the predictability and immediacy of cash to RSUs, or restricted stock units, but the post doesnt mention the loss of monthly incentives, which Bloomberg reported earlier today.
Several Amazon warehouse employees have criticized the move, stating they would actually be losing thousands in incentive pay. Currently, warehouse workers get two shares of Amazon stock when theyre hired ($1,952.76 per share as of writing), and an additional stock option each year. After the changes take effect, the RSU program will be phased out for stocks that vest in 2020 and 2021, and it will be replaced with a direct stock purchase plan by the end of next year.
An Amazon warehouse worker told The Verge via email that the news was devastating to fulfillment employees, many of whom depend on their RSU and VCP (variable compensation pay, a performance-based monthly bonus program) incentives on top of their hourly wages. VCP incentives, which are dependent on good attendance and hitting productivity targets, could get Amazon workers an 8 percent monthly bonus, and a 16 percent bonus during the peak November and December seasons.
Amazon workers have been responding to Sen. Bernie Sanders tweet praising the minimum wage raise, citing that on November 1st, many workers will have their paychecks cut, not raised.
Read more: https://www.theverge.com/2018/10/3/17934194/amazon-minimum-wage-raise-stock-options-bonus-warehouse
busterbrown
(8,515 posts)Disgusting!. Amazon just increased 1 benefit to subsidize the loss of 2 benefits!
Loss of monthly bonuses and stock options!
zentrum
(9,865 posts)...could do both and still be richer than God.
Amazon workers need a union!
Freethinker65
(10,048 posts)I am sure Amazon has enough money and is smart enough to figure something out.
cstanleytech
(26,319 posts)workers hours down a bit per week so in the end Amazon like most retailers in this country is still a pretty shitty company run by shitty people.
CloudWatcher
(1,851 posts)Pls boycott Amazon. They're simply evil. And not just this.
And that is why the $15 wage is not enough and this crooked move by Amazon says yes workers do form a Union!!!
Unions are the answer.