Amazon announces it will boost minimum wage to $15 for all workers after facing criticism
Amazon.com announced Tuesday that it would raise its minimum wage to $15 an hour for all employees, a move that comes after the tech giant faced harsh criticism for paying its workers too little.
The pay hike will affect 250,000 Amazon employees and 100,000 seasonal employees hired at Amazon sites during the holiday season. It will affect both full-time and part-time workers, as well as Whole Foods Market employees, and take effect Nov. 1.
"We listened to our critics, thought hard about what we wanted to do and decided we want to lead," said Amazon chief executive Jeff Bezos in a statement. "We're excited about this change and encourage our competitors and other large employers to join us."
Bezos also owns The Washington Post.
Amazon has come under harsh criticism over the years for what some say are poor working conditions in its warehouses, the hubs the company has set up around the country for rapid delivery of online purchases.
Sen. Bernie Sanders, the Vermont independent, has lashed out at Amazon recently for failing to pay a "living wage" to workers, leaving some dependent on safety-net programs like food stamps and Medicaid. He attacked Bezos, the world's richest man, and introduced legislation called the "Stop BEZOS Act" to tax Amazon and other large employers to recoup the cost of public benefits paid to employees.
Amazon disputed the criticism.
President Donald Trump has also raised a variety of concerns about Amazon and Bezos.
In its announcement Tuesday, Amazon said it would lobby for an increase in the federal minimum wage, which has been stuck at $7.25 for a decade. The online giant is the country's second-largest private employer, behind Walmart.
"We will be working to gain congressional support for an increase in the federal minimum wage. The current rate of $7.25 was set nearly a decade ago," said Jay Carney, senior vice president of global corporate affairs for the company. "We intend to advocate for a minimum-wage increase that will have a profound impact on the lives of tens of millions of people and families across this country."
The Obama administration had called for raising the minimum wage to $10.10, but the proposal went nowhere during an era of divided government. Many business groups and conservatives argue $15 an hour is too high, especially in lower cost-of-living places outside urban centers.
Other companies have also moved to raise wages, particularly in this tight labor market. Target announced earlier this year it would raise its minimum wage to $12 an hour with a plan to lift it to $15 by 2020. Walmart raised its minimum wage to $11 in January. Facebook also boosted its minimum wage for its contracted workforce - janitorial staff, food-service workers and other similar staff - to $15 an hour, while Costco now pays $14 an hour.
Amazon said on Tuesday that all employees, including those who already make $15 an hour, would receive pay increases as a result of its new policy. The Washington Post reported last week that Amazon had begun giving raises of between 25 cents and 55 cents an hour to workers at its fulfillment centers around the country.