Many small business owners do not welcome this pressure.
Tad Mollnhauer, who runs two print and shipping retail stores near Orlando, Fla., Says newcomers typically make about $ 10 to $ 12 an hour. But today, whoever pays that proportion runs the risk of losing workers to Amazon. (The state minimum wage is under $ 9 an hour but will rise to $ 10 this year according to a voter-approved referendum in November. The minimum wage will increase by one dollar a year. after that, reaching $ 15 an hour by 2026.)
Mollnhauer said it is difficult for small companies like him to match Amazon’s salary.
“Their network and resources are spread across the country,” he said, allowing Amazon to pay higher-than-market wages in some places. “For me, as two stores, I couldn’t do that.”
Jay Carney, Amazon’s senior vice president, said the company is aware of the impact its policies have on other employers. “We know that by doing that, we will encourage other employers to do the same, and if that happens it will put pressure on wages in general, which will be good,” he said. .
But he has dismissed suggestions that Amazon is using its political power to hurt its rivals. “We don’t have the power to force anyone to do this, only Congress,” he said.
Jared Bernstein, a member of the White House Economic Advisory Council, said the article also showed the potential spillover effect on workers from the increase in the federal minimum wage – which studies show will Helping workers who make more than the minimum earn also increases – and limits the efforts of private companies.
“There is no way to be sure of reaching tens of millions of hard-working but low-paid workers without a significant increase in the national minimum wage,” he said.
There are no Republican senators in favor of the $ 15-hour bill Amazon has approved, and some Democrats have been wary about it. Given those hurdles and a detrimental ruling from the Senate senator, the clause will almost certainly not become the final version of President Biden’s bailout package.