Amazon's raise isn't just helping the employees on its payroll. A $15 minimum wage from the tech giant could force its competitors to hike pay across the board, The Associated Press suggests.
The company announced Tuesday it would lift its minimum wage to $15 an hour, notably benefiting warehouse employees who've reportedly faced incredibly harsh working conditions. That's thanks in part to activists and politicians, notably Sen. Bernie Sanders (I-Vt.), who pointed out how Amazon founder Jeff Bezos had become the richest man in the world while many of his employees were left in poverty.
Now, with their first demands met, those same activists may take their message to Amazon's rivals. Retail stores, which employ a lot of low-wage workers, did boost their hourly wages by 4 percent in August compared to the year before, AP says. But shareholders in other retailers still seemed to think that Amazonian pressure could force rival companies to raise pay even higher, leading Best Buy stocks to fall 5 percent on Tuesday.
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Amazon also said Tuesday it would lobby the federal government to raise its $7.25 minimum wage. The company has already accounted for higher wages among its employees, leaving lower-paying rivals to play catchup, an economist tells AP. And besides, many of Amazon's processes swap workers for automation, which makes it even easier for the tech giant to justify lifting wages for its human employees.
Read more about the power of Amazon's wage hike at The Associated Press.
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