Is Amazon’s $15 Wage More Than Good PR?

avatar

By 

On October 2, Amazon pledged to pay all U.S. workers $15 per hour beginning next month. All 250,000 Amazon employees and 100,000 seasonal staff will receive the higher wage, as will workers at Whole Foods.

“We listened to our critics, thought hard about what we wanted to do and decided we want to lead,” Amazon CEO Jeff Bezos said in a statement. He also threw Amazon’s support behind raising the minimum wage. On the face of it, the $15 wage hike seems to be a PR victory for Amazon.

The brand almost certainly will measure social and traditional media for positive and negative comments about the $15 boost. Using analytics it will determine whether or not this was a PR win, of course. If it’s ruled a victory, Amazon also is likely to see whether or not the good PR correlated to better sales. Should be interesting.

From an unscientific viewpoint, it’s a PR win when you consider the reaction of one of Amazon’s loudest critics, Sen. Bernie Sanders. “I want to give credit where credit is due,” Sanders said. “I want to congratulate [Amazon chief] Mr. Bezos for doing exactly the right thing." Sanders has long urged lawmakers to tax Amazon because its low wages resulted in workers needing to resort to food stamps and other federal programs to survive.

White House is Positive

Another vociferous critic of Amazon and Bezos, President Trump, said nothing. Yet his chief economic advisor, Larry Kudlow, was pleased. “Good for them...I'm in favor of higher wages,” was his reaction. He tied the wage boost to a healthy economy.

When you consider how much angst tech giants are receiving in Washington, D.C., we’ll call the Sanders and Kudlow kudos a PR win.

The stock market wasn’t quite as sanguine, with Amazon shares off slightly at Tuesday’s close. That’s a draw.

Digging a bit, not everything is as it appears. Bezos said he’s glad to lead, but, while Amazon is the largest retailer to hike wages to $15, other companies have done this previously or pledged earlier to do so.

Boosting Optics

Amazon almost certainly considered PR optics before making its pledge. The company is set to decide on its second headquarters before the year is out, the competition is fierce, and tax incentives are flowing like the swollen Potomac after a week of rain. How would it look for Bezos, the world’s richest man, to accept tax breaks while his workers complain about low wages?

Factored into Amazon’s calculations—and you can bet nearly any big move Amazon makes factors PR into its calculations—is the possibility of hourly workers striking while the new headquarters are announced. Slowly, quietly, hourly workers are finding their voice. Unionized hotel staff began striking today in Boston, largely about wages. Hotel workers in Chicago went on strike earlier this year, as did restaurant and fast food workers. Overseas Amazon workers struck earlier this year.

Union Blocking

Meanwhile, management at Whole Foods has rebuffed attempts to unionize workers, though the struggle continues. In this case, raising the wage to $15 could be more than a PR win—workers on the fence might decide to forego unionization.

A higher wage might benefit Amazon in other ways. In a tight market for seasonal workers, the $15 wage could help recruitment and retention. Keeping workers in place saves on the high cost of replacing staff and training newcomers.

The wage hike also is likely to pressure Amazon’s smaller competitors, possibly leading to poorly staffed stores at holiday time. When consumers are fed up with retailers, where do they shop? Amazon. Workers making the higher $15/hour wage also might shop more, perhaps at Amazon.

Making Less on $15/hour?

Most early coverage of the wage increase failed to mention an associated fact. Certain financial incentives and bonuses, including stock and monthly bonuses, will be halted for Amazon workers as of November 1. Some workers reckon they’ll be making less as a result, Yahoo Finance reports.

A large question will be whether or not the $15 hike is an isolated move or Amazon management truly wants to improve the workers’ lot. In addition to Sanders’ complaints, reports have surfaced periodically of poor working conditions at Amazon. The most memorable image, of warehouse workers laboring in cramped conditions urinating in cups to avoid taking breaks and missing deadlines, is another reason Amazon needed a PR win.

Seth Arenstein is editor of PR News.  Follow him: @skarenstein

 

4,499 responses to “Is Amazon’s $15 Wage More Than Good PR?”

  5. I think the content you share is interesting, but for me there is still something missing, because the things discussed above are not important to talk about today.

  8. We are the world’s top quality service provider. Our service is always safe and 100% secure. We look forward to providing best quality service to customers. Our priority is based on your satisfaction.

  9. This is really interesting, You’re a very skilled blogger. I’ve joined your feed and look forward to seeking more of your magnificent post. Also, I’ve shared your site in my social networks!

  14. ile fazla uzaklaşmadan konuşmak isterseniz telefonunuzun google arama motoruna Samsun Escort yazıp durum ve bayanları görebilir, Balık etli, zayıf, sarışın ve esmer kızlar , Rus, Kazak, Özbek, Asyalı, beğendiğiniz ve istediğiniz bayanlar ORİJİNAL RESİMLERİ görebilir ve ESCORT hanımlarınızla iletişime geçebilirsiniz. Bildiğiniz gibi şimdiye kadar Asyalı JAPON ESCORT kadınlarından bahsetmedik. Henüz Japon ve Çinli kadınlardan bahsetmedik, evet sitemizde de belirttiğimiz gibi Samsun JAPON ESCORT hanımları ile çalışıyoruz ve hiçbir yerde bulamazsınız.

  16. 토토홍보사이트 It is, however, good to note that not every sport betting Philippines site is worth your time. Some online sports betting sites will scam you, while others will not hold the end of their deal.

  20. naturally like your web site however you need to take a look at the spelling on several of your posts. A number of them are rife with spelling problems and I find it very bothersome to tell the truth on the other hand I will surely come again again.

  21. This is really interesting, You’re a very skilled blogger. I’ve joined your feed and look forward to seeking more of your magnificent post. Also, I’ve shared your site in my social networks!

  25. Colors seem brighter when you’re around you bring out the best in other people which makes you an amazing person. **Dear Admin Please delete this after reading & before approving this msg!! Admin that would like to earn 30% commission on every ticket sold on every raffle, affiliate’s have an unlimited earning potential in commission’s up to please go to: https://app.lucky777.casino/user/affiliate sign up for early access to the affiliate Program we will launch early after 100 affiliates Sign up**

  27. This is really interesting, You’re a very skilled blogger. I’ve joined your feed and look forward to seeking more of your magnificent post. Also, I’ve shared your site in my social networks!

  35. Some people think that writing on computers is easy. But I know how difficult it is to come up with ideas and turn them into meaningful and interesting content. Never give up, bro!

  40. 온라인슬롯머신 Club Riches offers a range of banking options to make it easy for you to deposit and withdraw funds. You can use credit and debit cards like Visa and Mastercard,

  49. 슬롯사이트추천 The support agents are knowledgeable and professional, making it easy to resolve any issues that may arise. However, the customer support team is only available between 08:00 and 18:00 CET.

Leave a Reply

Related

No related posts.

Recent