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Amazon Cuts Warehouse Worker Bonuses After Increasing Minimum Pay

Amazon decided on to raise their minimum wage to $15 an hour, but it came with some cuts.

The reason people are so uptight about this is that there's something called VCP (variable compensation pay) and this is something similar to incentive pay. They also got restricted stock units, shares that vest after a good time of being with the company. On Oct. 2, 2018, VCP got wiped out along with almost the entire stock opportunity.

Basically, all this was a pretty good deal and really did help a lot of people buy gifts during the holidays. According to Time, VCP was especially important as people could get up to a monthly 8 percent bonus if their attendance was good and the facility met marks.

The initial response to the wage increase was good because many people in the United States have called for a standard of $15 dollars an hour. However, they often overlook that companies will have to cut costs somewhere in the book, so, in short, the increase hurts the people it's supposed to help, as we've already seen.

RELATED: AMAZON RAISES EMPLOYEE MINIMUM WAGE TO $15 AN HOUR

Via Sky News

One mother told Time that she uses the VCP to pay off debt and get gifts for her son, which is now not possible or would prove to be extremely difficult since she doesn't have as much money.

This move is supposed to benefit 100,000 seasonal workers as they can rake in their money during the holiday season, which is especially busy for Amazon. In fact, they've shipped one billion items during the 2016 season.

However, some warehouses have a little bit of a mutiny growing. One location saw people quit after news broke and in other places, people are talking of protesting on Black Friday. This would be devastating as these employees are basically the silent heroes who help make sure a package can leave on time, with them protesting on a very busy day, it could lower Amazon's sales in that specific warehouse.

Upper-management has a dangerous situation on their hands, if people find that the entire ordeal isn't worth it, they'll leave. If this happens it would mean that some very efficient employees are ditching the bad job, this leaves room for new and inexperienced workers to fill the gap, all the while, the customer suffers, as well as profits.

The reason people are so uptight about this is that there's something called VCP (variable compensation pay) and this is something similar to incentive pay. They also got restricted stock units, shares that vest after a good time of being with the company. On Oct. 2, 2018, VCP got wiped out along with almost the entire stock opportunity.

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