I can understand some of the frustration, especially for those making just shy of $15 before the raise, but even if the raise is only from $14 to $15, that still is around $2,000/yr (assuming 40 hour work week) that is guaranteed the way a bonus generally isn't.<p>I would almost always prefer a raise over a one-time bonus for that exact reason. In my experiences, I can't always count on my company giving me a yearly bonus.
In the past 5 years, Amazon's stock has gone up almost 6X. Anyone who got paid in RSUs almost certainly made out well. But, as Amazon points out in their statement, past results are no guarantee for stock performance going forward. I can pay you $500 in cash or I can give you $500 worth of stock (which vests over a period of time). Generally speaking, the cash (which you get right away) should always be valued more since you can spend it as you want, including using it to purchase stock (which these days can be purchased for nominal trading fees).<p>Furthermore, salary increases are always worth more than equivalent end-of-year cash bonuses, since you lose out on bonuses if you leave your job mid-year.
"Bezos is no fool. He will reduce his headcount, and step up his automation effort to eliminate as many low-skilled jobs from Amazon. Then he will lobby Congress to increase the minimum wage for his competitors that still employ lower-skilled workers. As these competitors will lack the resources to automate, they will be driven out of business, and all their workers will lose their jobs. Less competition will make it easier for Amazon to raise prices." - Peter Schiff<p>I'm all for voluntarily raising wages for your employees; that's a great thing. But if we see that Amazon is backing efforts to raise the minimum wage, we'll know Schiff was right.
I kind of think Amazon botched this from a PR perspective. It could have been a total win for them. Instead, it looks like a scam. Even if it isn't a scam, and employees will truly be better off (which is probably true), it at the very least failed to capitalize on the opportunity to look like a progressive company that cares about its employees.
This sort of hand wringing seems like a distraction from the likelihood that Amazon has moved up the date* in which these jobs will be eliminated. Whether employees are netting out the same or not is going to be moot. If it's similar though then that really doesn't seem like a good deal longer term.<p>*Robots will be able to do the jobs for $15 hour sooner than they'll be able to for $7 an hour. The math will accelerate the move to automation.
Amazon is correct. Equity is an inherently risky asset and is something better suited for those who can accept the risk.<p>If you're making $12/hr, adding Amazon stock on top is a feast or famine situation and would almost certainly cause issues in the next few years. We're on the end of a 10 year bull market, and the most likely situation is trending down.<p>As the saying goes, a bird in the hand is worth two in the bush.
Not sure what to think about Bernie needing too go as far as naming the bill "Stop BEZOS"<p><a href="https://www.sanders.senate.gov/download/the-stop-bezos-act-summary?inline=file" rel="nofollow">https://www.sanders.senate.gov/download/the-stop-bezos-act-s...</a><p>It was a political move, and it worked it got Amazon do respond. But seems a bit childish.<p>Remembering when I was making $7.50 / hour, bump in salary would have been better than bonuses or RSUs. I think in that salary range, this is still a good move.
Is it something like this?<p>For someone who worked at one of these jobs at Amazon for 3 years<p>Basic wage: X<p>Bonus Wage: Y<p>Total: X+Y<p>Under the new system<p>Basic Wage: X+Y<p>Bonus Wage: 0<p>Total Wage: X+Y<p>The net effect is zero but principly the value of the bonus has been reduced to nothing, after the loyalty of rhe employee and the benefits that come with that, have already been collected by the employer.<p>Seems somewhat unfair from that perspective, but they can do what they want I guess.
I'm going to assume a lot of these warehouse workers would rather have more money in there pay packet now then a share or two which need years to vest with an unknown value.