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Trump's Tight Labor Market Drives $15 Wage Hikes for Amazon Workers

03 October 2018

That includes employees at Whole Foods, which Amazon acquired for US$13.7 million in June 2017.

Amazon says the $15 minimum wage will benefit more than 250,000 Amazon employees, plus 100,000 seasonal workers. With a healthy USA economy, Americans looking for work have an increasing number of job options, so Amazon has to find ways to entice people to join its company. It will climb to $13 in July 2019.

Massachusetts: Like California, Massachusetts increased its minimum wage from $8 to $11 an hour in the past decade.

Minimum wage work has been on the decline in the U.S. for several years, and the number of workers making the minimum wage or less varies widely across the states.

"It was clear to us that the $7.25 was too low for the federal minimum wage, and so we chose to throw our support behind increasing that", Clark said.

After years of sluggish pay gains, the economy may be starting to work for America's low-wage workers.

Christine Owens, executive director at advocacy group National Employment Law Project, said Amazon's call for changes at the federal level was a "significant" move.

The last hiring figures from the U.S. Commerce Department showed that in August, the pace of hiring rose again and wages grew at their fastest pace in nine years. But corporate profits in the USA are booming, and that wealth isn't being spread out almost fast enough for many. There are now more available jobs than unemployed people, the first time that has happened in the 18 years the government has tracked data on open jobs.

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Ambassador to the United Nations , took to Twitter to criticize the policy, calling it "needlessly cruel and bigoted". It was detailed in a memo circulated to employees at the United Nations' headquarters in NY last month.

The company this summer said that it would begin to pay workers to be "ambassadors" and tweet full-time about how satisfied they were at their jobs. Despite its dominance, it shares a major problem with employers big and small: a tight labor market.

Walmart raised its starting pay to $11 an hour earlier this year and said it has seen lower turnover among its employees. Walmart increased its minimum wage for employees to US$11; many other companies also raised wages or gave bonuses to employees after the passage of the tax reform bill late past year.

"You've got a company that can't attract and keep labour because their wage rates are at the bottom of the pay scale, generally speaking", said Marc Wulfraat, president of logistics consultancy MWPVL International, which closely tracks Amazon's fulfillment operation.

That has included several fatalities, including one in 2013 when a conveyer system crushed a temporary worker in a New Jersey warehouse, according to the US Occupational Safety and Health Administration (OSHA). Bernie Sanders of Vermont has noted that some of its workers receive food stamps and other benefits that are geared for the poor, while its owner Jeff Bezos has become the world's wealthiest person.

"What Mr. Bezos has done today is not only enormously important for Amazon's hundreds of thousands of employees, it could very well be. a shot heard around the world", Sanders said. Target and Walmart have made similar moves.

"Amazon's US$15 an hour minimum wage is a sign they care about employees". Walmart is now the largest private employer in the nation, with a workforce topping 1.5 million employees.

Amazon workers in the USA now make around $US11 an hour That will jump to $US15 next month. Analysts said the raise would cost it $US1 billion or less annually but would be offset by a recent $US20 increase in the cost of its Prime memberships. With Tuesday's move, Amazon has done that already.

Amazon, the business that upended the retailing industry and transformed the way we shop for just about everything, is jumping out ahead of the pack again, announcing a minimum wage of $15 an hour for its USA employees that could force other big companies to raise their pay.

Trump's Tight Labor Market Drives $15 Wage Hikes for Amazon Workers