Amazon rises wage and cuts other compensations

September 27, 2018 - By Justin Balkhi

The minimum wage hike by Amazon comes with less pleasant surprises. While the officials from the biggest online retailer stay very positive on the new salaries, not all their workers share their optimistic approach.

Is it really true that with new wages everyone wins? Apparently, not all in the company believes that Amazon’s decision was wise.

Managers of Amazon explained good news to employees this Tuesday. However, they expected the more positive reaction to the news.

Meanwhile, many workers became angry with the new police. They are sure that their take-home pay would be cut by company’s authorities.

On Tuesday, Amazon has officially announced their decision to raise the minimum payment to their staff. They proclaimed that starting from November, their workers would receive not less than 15 dollars per hour. This was the main cornerstone and demand of advocates of labor in the USA, and the personal battle of Senator Bernie Sanders, who used to blame the biggest retailer in low wages.

While this may sounds like good news, indeed, there will be several cuts that Amazon needs to do for increasing minimal payment. For example, their variable compensation program must be cut. It is based on level of productivity, attendance, and even stock allotment program.

Some employees were very upset that VCP will be cut. They screamed it towards managers who were trying to assure that it is better to be without the program anyway. They asked for patience and understanding, while cutting bonus programs away from employees.

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