Amazon has confirmed the news that it will stop giving hazard payments to their warehouse workers starting next month.
Starting in March, the online retailer has paid an additional $2 per hour for its field workers. Overtime payment which was also doubled will return to normal starting next month.
The initial plan was to provide extra payment for a month until April, but Amazon has extended it twice until the end of this month. Acknowledging the great customer demand that the company is dealing with, executives said it would be right to extend it for two more weeks.
One Amazon executive explained to the Daily Mail that this extension means that the company would have spend $800 million in total to help its employees through the pandemic via the increased wages.
In total, Amazon said that it will be spending up to $4 billion in relation to Covid-19. This includes the increased wages and the purchasing of personal protective equipments (PPEs) for its workers.
Amazon’s decision was met with fierce criticism from labor advocates. They point to how Bezos’ personal net worth grew by $30 billion because of pandemic. As of this writing, Forbes estimates Bezos’ net worth at $142.7 billion, an increase of $12.7 billion since February.
With offline shopping virtually banned, Amazon greatly benefited from the ‘un-contact’ shoppers who flocked to the online retailer for even the most mundane items. As one-quarter of Americans file for government benefits due to unemployment, Amazon stock prices continued to soar.
Amazon is not alone in terminating a more generous wage system. Starbucks, Target and Kroger Co. are all ending similar schemes that they had implemented to compensate their employees for working during the global pandemic.
Meanwhile, 13 Attorney Generals from around the United States had been investigating whether Amazon tried its best to provide a safe and sanitary working environment for its workers. They have asked the company for various documents, including evidence that they were providing paid leave for their employees.
Although Amazon said that they were trying their best to protect their workers, it also fired at least four employees for voicing concerns over the safety of their working space. The reason for the release was for violating internal regulations.
While the decision is understandable from a business point of view, it does leave a bitter taste for many. Share your thoughts with us in the comments!
Replaced!