Amazon is getting rid of monthly bonuses and stock rewards for warehouse workers to help fund its new $15 minimum wage for its employees, Bloomberg reports.
Amazon announced last week that it is raising its minimum wage for all of its hourly employees. By discontinuing its Restricted Stock Units Program, Amazon said it is able to offer employees “the predictability and immediacy of cash.”
The company said that phasing out of its RSU program will result in more total compensation for its employees. Amazon employees could previously make hundreds of extra dollars with monthly bonuses; however, the bonuses were not guaranteed.
The company is also lobbying for an increase in the $7.25 federal minimum wage.
“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,” said Jay Carney, Senior Vice President of Amazon Global Corporate Affairs.
Amazon employees will continue to receive healthcare, company-paid life and disability insurance, up to 20 weeks of paid parental leave and 401k matching.