Yesterday, October 2nd, Amazon announced that it will be raising the minimum wage for all of its U.S. employees to $15 an hour.
Amazon said the increase in wages will start on November 1st, and it will cover over 250,000 current employees, as well as an additional 100,000 seasonal employees the company expects to bring on for the holiday season.
According to the company's press release, "Amazon’s public policy team will also begin advocating for an increase in the federal minimum wage."
The announcement follows recent criticism and political pressure aimed at the company regarding its compensation of warehouse workers.
Amazon Chief Executive Jeff Bezos said in the statement: “We listened to our critics, thought hard about what we wanted to do, and decided we want to lead.”
Senator Bernie Sanders, who had recently introduced the BEZOS Act to Congress, which aimed to tax large companies with employees who rely on federal benefits, said in response: “What Mr. Bezos has done today is not only enormously important for Amazon’s hundreds of thousands of employees, it could well be a shot heard around the world.”
Food For Thought
Was Amazon's decision to raise its minimum wage a smart one? What were Amazon's motivations?