Amazon’s $15 Minimum Wage May Disadvantage Small Businesses

Amazon minimum wage
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What better way to sidestep an issue hurled against you than by turning the tables on your critics?

amazon logoThat’s what Amazon did when it raised its minimum wage for all of its employees, including seasonal workers, to $15 an hour.

The online retail giant is also working with policymakers as it lobbies for higher federal minimum wage. However, this move could put small businesses who can’t comply with the $15-per-hour rate at a disadvantage.

“We will be working to gain congressional support for an increase in the federal minimum wage. The current rate of $7.25 was set nearly a decade ago. We intend to advocate for a minimum wage increase that will have a profound impact on the lives of tens of millions of people and families across this country.” – Jay Carney, Senior Vice President for Global Corporate Affairs, Amazon

Amazon’s new hourly wage rate will take effect on Nov. 1 and benefit 250,000 employees of the company, as well as more than 100,000 of its seasonal employees.

Pressured by critics?

Amazon said that its decision to up its minimum wage is in response to its critics and hopes to set an example for other companies as well.

“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead. We’re excited about this change and encourage our competitors and other large employers to join us.” – Jeff Bezos, Amazon Founder and CEO

Unfortunately, not all companies can afford to pay $15 an hour; if pressed to follow suit they’ll face dire financial consequences.

Lucky for them that this initiative came from a private entity. Imagine if it was from the government, the plans of small retailers could easily be blown off course.

Do you think Amazon’s wage hike can endanger other businesses or is it worth copying? Let us know your opinion in the comments below or over in our Facebook Group.

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For almost 10 years Dave has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant it was the opportunity to start UnderstandingE with Matt Ogborne showing the world how to utilize Magento as the Third Generation of Multi-Channel software. Dave also recently started a YouTube channel called the Manc Entrepreneur (click YouTube icon link below to watch Dave's videos) where he discusses all things eCommerce and entrepreneurship aimed to help young entrepreneurs get started on their own journey. When Dave isn’t working his main interests include, Technology, Cars and throwing himself off high things into water.

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