The pay raise will apply to 250,000 employees starting November 1 and to the more than 100,000 seasonal workers the company expects to hire for the holiday shopping season, it said.
Bezos apparently took the suggestion, saying that not only should other companies follow his lead, but that the federal government should also raise the minimum wage.
CEO Jeff Bezos said the company had "listened to our critics".
Amazon is encouraging other large USA employers to follow its lead and said it would lobby lawmakers for an increase in the federal minimum wage, now at only $7.25. "The current rate of $7.25 was set almost a decade ago", said Jay Carney, Senior Vice President of Amazon Global Corporate Affairs. "I want to congratulate Mr. Bezos for doing exactly the right thing".
Even more importantly, Amazon says it will begin advocating for an increase in the Federal minimum wage.
For example, a recent job posting for a warehouse position in Durham said starting pay was $10.50 per hour.
Amazon is also increasing wages in some areas outside the U.S. The company announced that the minimum wage will be 10.50 pounds an hour in London and 9.50 pounds in other parts of the UK.
For those hourly workers, Amazon plans to replace its RSU grant program with a direct stock purchase plan by the end of 2019.
British ministers’ phone numbers leaked in app flaw
They want the party to present something more than Brexit divisions, as they eye the threat posed by the opposition Labour party. Was it an unforced error the party could do without, and a bumpy start to what was already likely to be a bumpy conference? Yes.
By lobbying for a higher minimum wage, Amazon is also calling on lawmakers to increase its competitors' costs.
U.S. Senator Bernie Sanders, a self-described Democratic socialist, has been vocal about the pay disparity at U.S. corporations and has proposed a bill aimed at making large corporations pay workers more. We annualized this compensation for employees who did not work the entire year, except for employees designated as seasonal or temporary.
On Tuesday, fast food workers in MI are going to kick off a series of protests in the Midwest and elsewhere around the country in support of unions and a $15 minimum age.
The minimum wage hike at Amazon comes as it is searching for a home for its second U.S. headquarters, which will employ as many as 50,000 people.
It seems Amazon.com Inc. really does care what people think about the company. "Bottom line: the taxpayers of this country should not have to subsidize employees at a company owned by Mr Bezos, who is worth $155 billion". That's happened while the e-commerce giant's market value has surged to just under $1 trillion and Bezos has become the world's richest person.
"Amazon is proud to have created over 130,000 new jobs past year alone", the Amazon blog post said in August. At the time, Bezos said the story "doesn't describe the Amazon I know".
Amazon opened a 2.4-million-square-foot warehouse south of Orlando International Airport in August and has been furiously hiring workers to get to its 1,500 employee goal.