Move will cost company a billion dollars annually, but earn goodwill: Analyst
October 10, 2018
Fatter paycheques soon at Amazon.com.
The online retailer says it'll hike the minimum wage to $15 an hour next month for its U.S. employees.
That's more than double the federal minimum. It'll apply to full-time, part-time as well as seasonal hires.
SOUNDBITE: WEDBUSH SECURITIES ANALYST, MICHAEL PACHTER, (ENGLISH) SAYING:
"I think those actions speak pretty dramatically. It's not cheap. It's going to cost them a billion dollars, I think, per year. It's not that they're able to raise prices or pass that through to customers. This is something their shareholders are going to fund. But I think a lot of Amazon shareholders think this is the right thing to do."
Amazon shares declined in early morning trading.
Prompting Amazon's move: CEO Jeff Bezos, the world's richest man, said, "We listened to our critics, thought hard about what we wanted to do, and decided we want to lead."
Those critics included Senator Bernie Sanders, who today praised Amazon's move and said other companies should follow its lead.
The company's archrivals moved earlier to raise base pay, but they're far shy of $15.
Target upped its minimum to $11 last year and set its own target of $15 by 2020. Walmart boosted it to $11 earlier in February.
— Fred Katayama, Reuters