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Amazon increases its minimum wage to $ 15 on November 1 for US part-time, temporary and seasonal employees.
Amazon Minimum Salary
They also announced that they would lobby Congress for a similar increase at the federal level. Small Business Trends has contacted Karen Kerrigan, President and CEO of the Small Business and Entrepreneurship Council (SBE Council), to find out what all this means for small businesses.
Paint an image
Kerrigan began by painting a picture of what she considers to be Amazon's attempt to undermine their competition by attempting to tip politics.
"Many small business owners I've talked to think that Amazon is using its political leverage to push for a policy that would undermine the competitors of small and medium-sized businesses." These entrepreneurs do not like it at all, "she wrote to Small Business Trends in an email.
Common commercial tactic
Kerrigan believes that if Amazon can afford to give a bonus of $ 15 an hour to its employees, many small business owners award salary increases based on their financial ability.
She points out that what Amazon is doing is a common business tactic used by the biggest players to reduce their budgets with less competition. In a recent press release, she stressed the importance of costs and margins and the fact that any mandatory wage increase would hurt many small businesses.
She also highlighted the general negative reaction of her colleagues and made a prediction.
"Most small businesses have responded badly," she wrote in response to questions about small business trends. "It's not a wellness campaign on their part, but a purely commercial strategy of asking the government to act to increase the labor costs of all businesses." This will not make small businesses happy with Amazon. "
Increase in the minimum wage
The issue of a growing minimum wage is not new. In fact, 20 states will give these workers a boost in 2018. New York, Washington and places in California have taken the lead and have already grown to $ 15.
Kerrigan believes that the issue needs to be debated at the local level, so that entrepreneurs seeking to break into markets and small businesses with tight margins benefit from a break.
"If business owners are hard hit, for example in Seattle or San Francisco, because of the sharp wage increases in those cities, they can more easily move to other places, even though it's still often difficult."
Sails for small businesses
Unsurprisingly, Kerrigan said that Amazon should refrain from using its political leverage to destabilize small business sails.
"It's great that Amazon employees have benefited from a salary increase, which is great news. At the same time, we heard that they were cutting back on their bonus program, "she wrote with a final prediction.
"If they continue to lobby lobbying, I think it will serve more fuel for local purchases, will support the movements of Main Street."
Photo via Shutterstock
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