Small Step

Amazon.com has been blistered in reporting and on social media for its pay scale for warehouse workers. It has just announced a raise for its employees. The increase of two to four percent was at best a small step and will hardly dent Amazon’s profits. Most certainly it will not stop criticism of its wages. Bezos has long been known as frugal when it comes to remuneration, and it might over time be a differentiation between a successful company and a struggling retailer. Should Amazon’s workers decide to unionize and strike, they can quickly shut the company down.  Poor pay is a prime reason for adverse action. Look for pay scales to continue as a weak point for the company in terms of reputation and credibility.