Amazon will raise company's minimum wage to $15 for all United States employees

Workers sort arriving products at an Amazon Fulfilment Center in Tracy California

Workers sort arriving products at an Amazon Fulfilment Center in Tracy California

"Today I want to give credit where credit is due and I want to congratulate Mr. Bezos on doing exactly the right thing", Sanders said in a press release Tuesday. Only one state - Washington - had a minimum wage above $8 an hour. Bernie Sanders (I-VT) praised Jeff Bezos for the change, hoping it would push other major corporations to do the same. "We're excited about this, and also hope others will join in".

Furthermore, the boom at online retailers like Amazon has coincided with layoffs and store closures for traditional retailers such as Sears, Macy's, Toys R Us and Kmart.

In a 2015 article in The New York Times, employees described a "soulless, dystopian" work environment.

In a statement released on Tuesday, Amazon said the salary increase, which is more than double the federal minimum wage of $7.25, will come into effect on November 1. Chukumba estimates that the wage increase will cost Amazon an incremental $900 million to $1.8 billion a year, or less than 0.7% of the company's 2019 estimated sales of $287 billion. "If you are profiting from changes in the economy, we need to make sure that everyone in this country has a stake in that economy". It will rise to $15 an hour by 2020.

Sanders said that no worker employed full-time in the United States should be living in poverty.

Senator Bernie Sanders, a fierce Amazon critic who has long campaigned for higher wages as the USA recovers from the Great Recession, hailed the decision, saying Bezos and Amazon were "now leading the way".

The company's leadership hailed the move as a moral win.

The company, whose value topped $1 trillion briefly in September, was facing political and economic pressure to raise pay for thousands of employees.

The decision also raises the stakes for potential workers at Amazon's so-called HQ2 competition - its plan to create a second headquarters, with as many as 50,000 jobs.

Amazon, like other retailers, may also have concluded that it needs to raise wages to reduce turnover and attract better job applicants at the company's crucial network of package warehouses and for positions in Amazon's growing network of self-delivery operations. Amazon employs over 575,000 people worldwide. "Mr. Bezos and Amazon are now leading the way". "That is absurd", Sanders said.

It seems Amazon really does care what people think about the company.

The company challenged Sanders calling his accusations "misleading".

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