Amazon eliminating bonuses, stock awards to help pay for wage increases: report

Amazon eliminating bonuses, stock awards to help pay for wage increases: report
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Amazon.com Inc. is reportedly cutting benefits for warehouse workers and other hourly employees after the company announced this week that it will raise its minimum wage for its workers to $15 per hour.

Bloomberg News reported that Amazon informed employees Wednesday that monthly bonuses and stock awards would be eliminated to pay for the wage increases, citing two people familiar with Amazon’s pay policies.

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The company said in a statement to Bloomberg that overall compensation for workers will still increase despite the elimination of bonuses and tock awards.

“The significant increase in hourly cash wages more than compensates for the phase out of incentive pay and RSUs," an Amazon spokesperson told The Hill in an email Wednesday night.

"We can confirm that all hourly Operations and Customer Service employees will see an increase in their total compensation as a result of this announcement. In addition, because it’s no longer incentive-based, the compensation will be more immediate and predictable," the spokesperson added.

Workers who are already being paid more than $15 an hour will also receive raises of $1 per hour, which Bloomberg notes has caused dissatisfaction from some veteran workers over receiving smaller raises than newer employees, who saw their paychecks rise as much as 40 percent due to the new policies.

The company is meeting with employees through November 1 to discuss concerns about the new pay structure as a result.

Progressive lawmakers who have supported the "Fight for 15" movement to raise the minimum wage had praised Amazon's announcement Tuesday.

“What Mr. Bezos has done today is not only enormously important for Amazon’s hundreds of thousands of employees, it could well be a shot heard around the world. I urge corporate leaders around the country to follow Mr. Bezos' lead,” Vermont Sen. Bernie SandersBernie SandersThe Hill's Morning Report - In exclusive interview, Trump talks Biden, Iran, SCOTUS and reparations Biden to debate for first time as front-runner Rules for first Democratic primary debates announced MORE (I) said in a tweet.

Updated at 10:50 p.m.