Amazon employees will have something to celebrate because the company just recently announced that it would be raising wages for low-paid workers. In a huge milestone for campaigners pushing for pay increases and tackling poverty and inequality, Amazon has raised its minimum wage for British and American workers to $15 and hour.
The move will benefit 250,000 workers in the US, 17,000 in the UK and tens of thousands of seasonal workers.
Jeff Bezos, the founder of the e-commerce company, said: “We listened to our critics, thought hard about what we wanted to do, and decided we want to lead. We’re excited about this change and encourage our competitors and other large employers to join us.”
The change will take effect Nov. 1 and will apply to full-time, part-time and temporary workers. The change also applies to Whole Foods and all other subsidiary employees.
Amazon’s federal minimum wage has been $7.25 an hour since 2009, but due to the size and explosive growth of the company, Amazon came to the conclusion that it was important to lobby for a pay increase.
The decision also comes as Amazon plans to create a second headquarters, with as many as 50,000 jobs.
Amazon is among the largest employers in the United States, worth about $1 trillion, and it has added more American jobs in the past decade than any other company.
The e-commerce company has been criticized in the past for its employment practices, with complaints of working conditions in its warehouses. Critics also drew a contrast with Bezos’ spectacular wealth, as he is the richest person alive, worth an estimated $165 billion.
Supporters of the pay increase say the decision is a remedy for widening wage inequality and will help increase consumer spending. However, critics claim that that it could reduce opportunities for employment, particularly for those looking for entry level or low-skilled jobs.
By: Maytinee Kramer
