Amazon Raises Minimum Wage to $15 for All US Employees

cageymaru

cageymaru

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Amazon has raised the minimum wage for all US employees to $15 starting on November 1st. This includes all full-time, part-time, temporary, seasonal, and even those associates employed from temp agencies. This will benefit the 250,000 Amazon employees and the 100,000 seasonal employees typically hired for the upcoming holiday season. Amazon has pledged to use its clout to gain Congressional support for a raise to the federal minimum wage.

"We listened to our critics, thought hard about what we wanted to do, and decided we want to lead," said Jeff Bezos, Amazon Founder and CEO. "We're excited about this change and encourage our competitors and other large employers to join us." Amazon's public policy team will also begin advocating for an increase in the federal minimum wage. "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 Amazon Global Corporate Affairs. "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."
 
I'm glad they did as minimum wage is well behind cost of living, though that does apply to wages in many tiers in a lot of areas (like in Wash DC area for example). We will see if Amazon also bumps their fees and such or they'll just take a hit on profits to pay their workers more.
 
Facebook has 3rd party folk that work on site (food, cleaning, etc) which are "not" facebook and receive no benefits and "may" live off site in mobile homes because of the "below $15" pay. Does amazon have these people too? Its kind of grey since the article lists temps and temp agencies.
 
Does that include robots? ;)

Amazon uses a lot of robots in their ware houses - some rather advance stuff. Some nice paying jobs for robot keeping, $30+ - that is if you don't mind walking 10 miles + a day that is. Their ware houses are HUGE!!

Now if I was a teenager, going to college etc. That would be my first choice. Whole new ware house opened up in Orlando Florida. Hiring frenzy with a state with very low unemployment levels.
 
I APPLAUD Amazon for doing this. That is what competition is all about. This way people w/o educations or specific skillsets will be attracted to working for Amazon.

There's another side to this. Amazon has the money to do this. MOST SMALL BUSINESSES DON'T.

In N Out pays people $12 an hour for kids to flip burgers. They have the money to do this.

But the independent commercial custodial company doesn't have the money to pay folks $15 an hour to sweep floors in a warehouse. They don't.

STOP MANDATING WAGES VIA LAWS.

Holy shit, take an economics lesson.
 
Kwaz said:
A wage increase ultimately isn't going to make people richer in the long run. It's the distribution of wealth that is the problem.
Click to expand...

Obviously. The simple solution is that people should just stop being poor.

/s


I'm 34. We're in for a long, nasty, and potentially dangerous haul over the next 30+ years. And it's been coming over the previous 30. Population goes up, amount of available jobs goes down (automation and outsourcing), and the wealth becomes even more concentrated.

And I always hear the argument 'Well someone's going to have to build/fix/program the robots! Get one of those jobs!' To which the answer is: If 1 robot replaces 3 jobs and then 1 person can maintain and fix 10 robots, you're gonna have a bad time.
 
OFaceSIG said:
I APPLAUD Amazon for doing this. That is what competition is all about. This way people w/o educations or specific skillsets will be attracted to working for Amazon.

There's another side to this. Amazon has the money to do this. MOST SMALL BUSINESSES DON'T.

In N Out pays people $12 an hour for kids to flip burgers. They have the money to do this.

But the independent commercial custodial company doesn't have the money to pay folks $15 an hour to sweep floors in a warehouse. They don't.

STOP MANDATING WAGES VIA LAWS.

Holy shit, take an economics lesson.
Click to expand...
Well I would counter that argument with the small business needs to charge more for their services. Say minimum wage increases across the board to $15. Everyone who couldn't pay as much for services previously should be able to pay more for services in that scenario. So that hamburger increases in price, but the average person can still afford it because the minimum wage is now $15.

Just thinking outside the box and having a bit of fun; not starting an argument. :)
 
OFaceSIG said:
STOP MANDATING WAGES VIA LAWS.

Holy shit, take an economics lesson.
Click to expand...

We have laws regarding wages for the same reasons we have laws that say you can't pay your workers in the 'company scrip'. Or allow 12 year old kids to work factory jobs. Or that overtime has to be paid for hourly employees past a 40 hour week. Or a whole host of other things. People weren't given any of these things by well meaning companies- they had to be fought and died for before they could be enshrined into law.
 
Health and well being laws and not analogous to wage laws. There's a difference between ensuring an child doesn't work in a copper smelting forge and not paying someone $15 an hour to sweep floors. You have a weak premise and weak retort.
 
cageymaru said:
Well I would counter that argument with the small business needs to charge more for their services. Say minimum wage increases across the board to $15. Everyone who couldn't pay as much for services previously should be able to pay more for services in that scenario. So that hamburger increases in price, but the average person can still afford it because the minimum wage is now $15.

Just thinking outside the box and having a bit of fun; not starting an argument. :)
Click to expand...

exactly this, it goes both way, if a huge % of the population is having a hard time to make ends meet they wont be able to buy crap to keep the economy rolling.
 
Good for Amazon. I'm sure they can afford to do this.
I think increasing the minimum wage across the whole nation will only make everything cost more in the long run, which will ruin people who are already making $15 an hour and are now "minimum wage workers". Then, $15 won't be enough to live on.....
I don't think minimum wage was ever meant to be able to live on, just a stepping stone to get some work experience or for people that are bored with life...
 
CombatChrisNC said:
We have laws regarding wages for the same reasons we have laws that say you can't pay your workers in the 'company scrip'. Or allow 12 year old kids to work factory jobs. Or that overtime has to be paid for hourly employees past a 40 hour week. Or a whole host of other things. People weren't given any of these things by well meaning companies- they had to be fought and died for before they could be enshrined into law.
Click to expand...

You probably think Unions created the workers paradise we have today. Guess what. They didn't.

Henry Ford created the first $5 hour wage, long before it was the minimum wage.
He mandated the 40 hour work week.
He mandated no weekend work.

Again, he did this to attract workers.

Capitalism, has done more to lift people out of poverty than any law ever has.

Sorry, brobro.... laws are the wrong approach.

Competition for jobs is the correct appraoch.
 
OFaceSIG said:
I APPLAUD Amazon for doing this. That is what competition is all about. This way people w/o educations or specific skillsets will be attracted to working for Amazon.

There's another side to this. Amazon has the money to do this. MOST SMALL BUSINESSES DON'T.

In N Out pays people $12 an hour for kids to flip burgers. They have the money to do this.

But the independent commercial custodial company doesn't have the money to pay folks $15 an hour to sweep floors in a warehouse. They don't.

STOP MANDATING WAGES VIA LAWS.

Holy shit, take an economics lesson.
Click to expand...
Sounds like a small custodial company needs to quit using badly underpaid employees as a means to grossly underbid contracts. The only economics lesson being taught currently is the race to the bottom with the undercutting war, instead of the race to offer the best service.
 
Dekoth-E- said:
Sounds like a small custodial company needs to quit using badly underpaid employees as a means to grossly underbid contracts. The only economics lesson being taught currently is the race to the bottom with the undercutting war, instead of the race to offer the best service.
Click to expand...

Sounds like you've never bid for work. The customer holds the purse strings. Guess what? If you don't get that contract for $9 an hour to sweep floors your workers have less hours, less money. Again, simple economics lesson. Not complicated.
 
xmadror said:
exactly this, it goes both way, if a huge % of the population is having a hard time to make ends meet they wont be able to buy crap to keep the economy rolling.
Click to expand...

Thus negating the purpose of the minimum wage increase.
If you increase minimum wage, then increase the cost of your services, soon the "new" minimum wage won't be enough, and you're back to square one.

Example, smartphones. Increase minimum wage= now your smart phone will cost more per month, since providers have to pay their workers more. Soon you will no longer be able to afford your smartphone. Back to square one
 
The narrative that the "expanding income gap" is a huge issue, is just that: a narrative, and not truth:
For the first time ever, more than 50% of the world is middle income: https://www.brookings.edu/blog/futu...f-the-world-is-now-middle-class-or-wealthier/
And the "shrinking middle class" in the USA has been shrinking because for the most part the middle class has been becoming part of the "rich" http://reason.com/blog/2018/10/01/why-do-we-want-to-be-poorer-and-less-equ
Finally extreme poverty is falling the fastest: https://www.axios.com/extreme-pover...rld-4684158a-e37c-492d-9ce5-20922c38e402.html

So yes, overpopulation is a risk, but as people move up in income, they also go down in fertility so the rate of population growth is slowing (but still growing).. If you only listen to the fear mongers you'd think this is the worst time to live on earth, when in reality things (despite having an orange clown in charge of the US) are actually getting measurably better overall.
 
cageymaru said:
Well I would counter that argument with the small business needs to charge more for their services. Say minimum wage increases across the board to $15. Everyone who couldn't pay as much for services previously should be able to pay more for services in that scenario. So that hamburger increases in price, but the average person can still afford it because the minimum wage is now $15.

Just thinking outside the box and having a bit of fun; not starting an argument. :)
Click to expand...


HAHAHAHAHA. And then when EVERYBODY raises prices to offset the cost of the increase to a $15 minimum wage, you are right back where you started.

All it does in the long run is cause inflation.

Also not trying to start an argument.. but it is economics 101.

Also, what is going to happen to those people that are going to be taking a hit because they are not going to get the same increase in wages? What about them? They are going to have to also be paying more and not get an increase in pay.

I just "love" redistribution of wealth.

Another thing... MINIMUM WAGE JOBS ARE NOT MEANT TO BE CAREER JOBS. THEY ARE MEANT TO BE ENTRY LEVEL POSITIONS. If you are staying in a minimum wage job, you have absolutely no place to complain. Better yourself and get a better paying job.
 
cyclone3d said:
HAHAHAHAHA. And then when EVERYBODY raises prices to offset the cost of the increase to a $15 minimum wage, you are right back where you started.

All it does in the long run is cause inflation.

Also not trying to start an argument.. but it is economics 101.

Also, what is going to happen to those people that are going to be taking a hit because they are not going to get the same increase in wages? What about them? They are going to have to also be paying more and not get an increase in pay.

I just "love" redistribution of wealth.

Another thing... MINIMUM WAGE JOBS ARE NOT MEANT TO BE CAREER JOBS. THEY ARE MEANT TO BE ENTRY LEVEL POSITIONS. If you are staying in a minimum wage job, you have absolutely no place to complain. Better yourself and get a better paying job.
Click to expand...

Freaking Amen!
 
cyclone3d said:
HAHAHAHAHA. And then when EVERYBODY raises prices to offset the cost of the increase to a $15 minimum wage, you are right back where you started.

All it does in the long run is cause inflation.

Also not trying to start an argument.. but it is economics 101.

Also, what is going to happen to those people that are going to be taking a hit because they are not going to get the same increase in wages? What about them? They are going to have to also be paying more and not get an increase in pay.

I just "love" redistribution of wealth.

Another thing... MINIMUM WAGE JOBS ARE NOT MEANT TO BE CAREER JOBS. THEY ARE MEANT TO BE ENTRY LEVEL POSITIONS. If you are staying in a minimum wage job, you have absolutely no place to complain. Better yourself and get a better paying job.
Click to expand...

I couldn't agree more. Why are the concepts outlined above so fucking hard to understand?
 
Rockenrooster said:
Thus negating the purpose of the minimum wage increase.
If you increase minimum wage, then increase the cost of your services, soon the "new" minimum wage won't be enough, and you're back to square one.

Example, smartphones. Increase minimum wage= now your smart phone will cost more per month, since providers have to pay their workers more. Soon you will no longer be able to afford your smartphone. Back to square one
Click to expand...

Problem is the prices don't go up just enough to cover increased payroll costs. They go up higher than necessary as an opportunity to make their quarterly earnings look better. I don't think most people would care if a product costs 25¢ more than before wage increase.
 
cageymaru said:
Well I would counter that argument with the small business needs to charge more for their services. Say minimum wage increases across the board to $15. Everyone who couldn't pay as much for services previously should be able to pay more for services in that scenario. So that hamburger increases in price, but the average person can still afford it because the minimum wage is now $15.

Just thinking outside the box and having a bit of fun; not starting an argument. :)
Click to expand...
Then you still have companies that hire illegals and pay them $5 an hour under the table and under cut all the legit business like has been happening for decades.
 
LazN said:
The narrative that the "expanding income gap" is a huge issue, is just that: a narrative, and not truth:
For the first time ever, more than 50% of the world is middle income: https://www.brookings.edu/blog/futu...f-the-world-is-now-middle-class-or-wealthier/
And the "shrinking middle class" in the USA has been shrinking because for the most part the middle class has been becoming part of the "rich" http://reason.com/blog/2018/10/01/why-do-we-want-to-be-poorer-and-less-equ
Finally extreme poverty is falling the fastest: https://www.axios.com/extreme-pover...rld-4684158a-e37c-492d-9ce5-20922c38e402.html

So yes, overpopulation is a risk, but as people move up in income, they also go down in fertility so the rate of population growth is slowing (but still growing).. If you only listen to the fear mongers you'd think this is the worst time to live on earth, when in reality things (despite having an orange clown in charge of the US) are actually getting measurably better overall.
Click to expand...

Don't forget that when people talk about "the poor", they often speak as if it is a static set of people, when it is not, most poor people are young, and are constantly moving, very few people are chronically poor, and tend to be by choice and are often generational by family. The same is true with the rich, the number of people in that bracket is always changing, and they also tend to be older, because if you are wise and save money and work, you tend to accumulate wealth over time. However the narrative is that these are the same static sets of people who should be at war with each other.
 
cyclone3d said:
HAHAHAHAHA. And then when EVERYBODY raises prices to offset the cost of the increase to a $15 minimum wage, you are right back where you started.

All it does in the long run is cause inflation.

Also not trying to start an argument.. but it is economics 101.

Also, what is going to happen to those people that are going to be taking a hit because they are not going to get the same increase in wages? What about them? They are going to have to also be paying more and not get an increase in pay.

I just "love" redistribution of wealth.

Another thing... MINIMUM WAGE JOBS ARE NOT MEANT TO BE CAREER JOBS. THEY ARE MEANT TO BE ENTRY LEVEL POSITIONS. If you are staying in a minimum wage job, you have absolutely no place to complain. Better yourself and get a better paying job.
Click to expand...

Who could have guessed the [H] forum is full of economists?
 
From TFA, Amazon has about 575,000 employees total. Seems that about 43% of Amazon employee are minimum wage. How many of those have a real path toward meaningfully higher pay? I don't mean an extra 20 cents/hr after a year. I mean the opportunity to be making $25hr in a few years. It used to be that minimum wage jobs served two purposes. One was for jobs often filled by young folk saving money for that first appt or car or a college education(it wasn't a career and everyone knew it). The other was for evaluation jobs so a company could find out if the new person had any chance of doing a job before going through all the HR paperwork to make them a real employee.

Now it seems that far too many places consider minimum wage jobs to be the primary tier with little chance to make much more. This $15/hr sounds good and will provide a decent living in fly over areas. On the coasts where much of the yelling for $15 happens, folks will still be struggling to meet bills. If there is no chance for earning more, in a few years the yelling will be for a 'living wage' of $25/hr.
 
You dont have to be an economist to understand inflation. If you raise the minimum wage, producers have to raise prices to cover the costs. Those people making minimum wage have their buying power increase temporarily, then return to the same point as prices normalize. However, those not on minimum wage just had their buying power cut in half.

Say it with me... There is no such thing as a free lunch.
 
Hate to be "that guy" (not really.. I love being "that guy") but Amazon did not raise the minimum wage, they simply gave their employees more money, the minimum wage means the lowest amount you are allowed to pay someone, not the smallest amount you pay as a company
 
Jumpy-B-L said:
Who could have guessed the [H] forum is full of economists?
Click to expand...
Economics 101 (or more appropriately, Microeconomics) is required for many degrees, and I know many here are college educated. Some high school programs are introducing microeconomics to their academics, as well.
 
vegeta535 said:
Then you still have companies that hire illegals and pay them $5 an hour under the table and under cut all the legit business like has been happening for decades.
Click to expand...

Not to mention, in the global market place America has practically priced themselves out of being competitive. With our super high minimum wages, mandatory health care and compliance regulations costs for employees are ridiculously high. This is one of the many reasons why so many skilled jobs are going to contract labor even in the states. This way the companies don't have to shoulder health care costs. Insurance costs are insane for business owners.

To expand on the point made earlier, what's the point of raising the minimum wage again and again. I've seen it done several times over the last 20 years and its never had a positive effect. If anything, it squeezes the lower and middle classes hard. If your making $5 an hour and your wages suddenly go up to $15 an hour that will be fantastic until everyone raises prices to compensate for the increased labor costs. If your making $14 an hour and the minimum wage goes up to $15 an hour, you get fucked. Prices get raised on everything while your salary hasn't gone up the same percentage as it has for the people who made so much less. Essentially, it doesn't impact the rich and it squeezes everyone from the middle class on down. How does this help resolve the problem you sought to address by raising minimum wages? You can't legislate away pay gaps away and redistribute wealth to bring lower income households up to a higher standard in a more or less free market.

Companies will just move to other countries and outsource labor to reduce costs. We've seen it over and over again. All this does is eliminate jobs.
 
I also do not hate to be that guy, but you did not read the post...

"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 Amazon Global Corporate Affairs. "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."
 
OFaceSIG said:
I APPLAUD Amazon for doing this. That is what competition is all about. This way people w/o educations or specific skillsets will be attracted to working for Amazon.

There's another side to this. Amazon has the money to do this. MOST SMALL BUSINESSES DON'T.

In N Out pays people $12 an hour for kids to flip burgers. They have the money to do this.

But the independent commercial custodial company doesn't have the money to pay folks $15 an hour to sweep floors in a warehouse. They don't.

STOP MANDATING WAGES VIA LAWS.

Holy shit, take an economics lesson.
Click to expand...
This didn't happen because of competition. This happened because of constant bad press about their working conditions and a proposal in Congress to tax them for all welfare costs their employees accept, which was getting support from the left AND the right, due to it being framed as taxpayers not wanting to subsidize Amazon profits (seriously, it's the first time I've seen Fox News agree with something Bernie Sanders was saying). Someone at Amazon did the math and realized raising their wages would come out cheaper than having to cover all their employees' welfare costs. Don't forget, Amazon is a business.

In other words, the only reason this is happening is BECAUSE of the threat of law intervening. It's nice to imagine that all these large corporations are offering better wages and benefits to fight over employees, but considering how wages have stagnated for decades, that's just not the case. It's still race to the bottom.
 
Cactusj said:
You dont have to be an economist to understand inflation. If you raise the minimum wage, producers have to raise prices to cover the costs. Those people making minimum wage have their buying power increase temporarily, then return to the same point as prices normalize. However, those not on minimum wage just had their buying power cut in half.

Say it with me... There is no such thing as a free lunch.
Click to expand...

Problem starts when lunch costs 3x more than it did 10 years ago yet your salary remains the same.
 
OFaceSIG said:
Sounds like you've never bid for work. The customer holds the purse strings. Guess what? If you don't get that contract for $9 an hour to sweep floors your workers have less hours, less money. Again, simple economics lesson. Not complicated.
Click to expand...
Actually I have and I'm sick of the race to the bottom. You missed the entire point. If everyone is forced to pay their employees a decent wage, they can't bid the job so damn low. That is the whole point of a federal mandated wage, to prevent the exact kind of shit you are complaining about.
 
Cactusj said:
I also do not hate to be that guy, but you did not read the post...

"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 Amazon Global Corporate Affairs. "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."
Click to expand...

Oh yeah it would.... it will also hurt Amazon as prices would go up and only those on "minimum wage" would be getting their wages increased.
 
DukenukemX said:
About fucking time. Maybe now their employee's won't need government assistance?
Click to expand...

SAY IT WITH ME!!!!

MINIMUM WAGE JOBS ARE NOT MEANT TO BE A CAREER! THEY ARE MEANT FOR ENTRY LEVEL POSITIONS.... such as those people still in high school and living with their parents.

How exactly do you get on "government assistance" when you are still living at home with your parents?

Here is another thing that tans my hide.
People that are on minimum wage sometimes do it on purpose so they can stay on welfare. Why?, you ask. Well, it is because you have to make a whole lot more to even break even if you are not on welfare.

Welfare:
"free" healthcare
No state income or federal income taxes
"free" food

And in some/most places you also qualify for subsidized housing.

If the person doesn't care to work harder or get a job that has more responsibilities that pays significantly more, it is more economically feasible for them to just stay at a job that pays minimum wage.

------------------

Raising the minimum wage does nothing in the long run, and only slightly helps the minimum wage workers for a short time until everything else adjusts for the increase in minimum wage.

It also DESTROYS WEALTH as those who have money in the bank, invested, etc. suddenly have a lot less buying power than before as soon as the prices on everything go up in order to compensate for the hike in minimum wage.
 
Its weird that many think that universal minimum wage won't affect the cost of goods. You know, the stuff that needs to have a price increase so that companies can now pay $15 an hour for a burger flipper? Just look at what happened in Venezuela with their recent wage increases. Granted, that country is already a socialist shithole but the idea remains the same. Just because the wage increases that doesn't mean that the goods won't increase as well and those people will end up in the same situation.
 
cyclone3d said:
HAHAHAHAHA. And then when EVERYBODY raises prices to offset the cost of the increase to a $15 minimum wage, you are right back where you started.

All it does in the long run is cause inflation.

Also not trying to start an argument.. but it is economics 101.

Also, what is going to happen to those people that are going to be taking a hit because they are not going to get the same increase in wages? What about them? They are going to have to also be paying more and not get an increase in pay.

I just "love" redistribution of wealth.

Another thing... MINIMUM WAGE JOBS ARE NOT MEANT TO BE CAREER JOBS. THEY ARE MEANT TO BE ENTRY LEVEL POSITIONS. If you are staying in a minimum wage job, you have absolutely no place to complain. Better yourself and get a better paying job.
Click to expand...
Well around here, minimum wage jobs are jobs such as farming. So while it is nice to say that they shouldn't be working those jobs, I think the fact that you probably eat food means that someone HAS to work a minimum wage job. And I agree with you that bumping up the minimum wage does pretty much nothing as the wealth in America needs to be redistributed from the top hoarders. Which will never happen.
 
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