$15 per hour wage hike is because of US Amazon workers struggle, not from the kindness of Amazon

$15 per hour wage hike is because of US Amazon workers struggle, not from the kindness of Amazon

Recently Amazon has increased $15 (Rs.1112) per hour from $11 as minimum wage for its US workers. ‘We are excited about this change and encourage our competitors and other large employers to join us’ said Amazon CEO and founder Jeff Bezos in a statement.

The average federal minimum hourly wage in US is $7.25 (Rs.537.47). “The current rate … was set nearly a decade ago,” Jay Carney, senior vice president of Amazon Global Corporate Affairs, said in a statement. “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 the country”

India’s ecommerce sector will grow to $202 billion in the next few years. Amazon entered India in 2013 and captured 30% of ecommerce market while it holds less than 1% ecommerce market in China. Though it has yet to make profit, it has committed to invest $5 billion in India. Its market value expected to grow 23% annually until 2027 as per reports. $70 billion worth market share and $11 billion ($1100 crores) revenue from Indian ecommerce market. 1 billion = 100 crores

The head count of Amazon India approximately around 50,000 across its all units in India among this 30,000 employees are the delivery boys and warehouse employees.  In India, Rs.9, 498 is the minimum wage in Maharastra and Amazon offers 60% hike, ie Rs.15,000 /month. In Karnataka, minimum wage is Rs. 13,400 and Amazon offers 25% hike, ie Rs.17,000 / month. So, the hourly minimum wage in India is less than $1. In between, India is planning to set its country level minimum wage Rs.18,000 ie $1 per hour !

With so much profit making potential from Indian ecommerce market, Amazon says its wages are competitive to Indian market! Ie $1 per hour. The same delivery job but far better road and traffic conditions than in India, the workers in US will get $15 per hour which is 15 times more than Indian delivery person!

Yes cost of living is different in different parts of the world, but we are looking for equal quality living conditions and better work life balance for all workers of Amazon across the world

Will Amazon advocate for better minimum wage ie better living conditions in India which too have profound impact on the lives of crores of people and families?

They will not.  It is this cheap labour force why MNCs are keen to invest in India. They invest in India so that they can earn comparatively high profit margin among its competitors by exploiting this cheap labour force, cheap land and subsidies in multiple ways. But for us wage and working conditions little above our Indian standard of workers living conditions which is competitive! Capital flows always where it can be multiplied manifold quickly.

$15 per hour wage hike is because of US Amazon workers struggle, not from the kindness of Amazon.

US Amazon workers are showing the path to win our rights !




Forum for IT Employees-Tamilnadu