Workers will earn more under new pay plan, says Amazon

Amazon said on Tuesday that all of its hourly US workers will be better off financially after its new pay policy goes into implementation on November 1. The e-commerce company wrote a letter to Senator Bernie Sanderson promising the same.

"All hourly operations and customer service employees will see an increase in their total compensation as a result of this announcement," wrote Jay Carney, Amazon's senior vice president for global corporate affairs to Sanderson, according to a report by The Washington Post.

Last week, the global e-commerce player announced that it would up its minimum wage to US$15 for all of its hourly workers who work in fulfillment centers and return centers. However, the workers at some Amazon warehouses didn't find it exciting when they heard the news as the company simultaneously cut bonuses and stock grants.  

Several workers told The Post, The New York Times and other media outlets that they believed they would make less money under the new pay plan than they do now, prompting Sanders to ask Amazon to confirm that all employees would see an increase in total compensation. 

Carney wrote that all hourly operations and customer service employees will see an increase in their base pay, as well as in their total compensation.

He also wrote about benefits, including comprehensive healthcare --up to 20 weeks of paid parental leave and Career Choice program, which pre-pays 95 percent of associates' tuition for courses in high-demand fields. Carney also made it clear that the increase in the hourly pay more than compensates for the elimination of incentive pay and stock grants, reiterating that the company is doing away these because workers want more immediate compensation.

The company is also stopping the practice of giving workers a quarter raise every six months, effectively creating a lower ceiling on how much employees can earn, reports The Washington Post.

Amazon told Sanderson it plans more outreach to help employees understand how the changes will affect them personally and how they will be better off.