Even after the elimination ofbonuses and stock awards, hourly operations and customer-serviceworkers will see their total compensation increase, the companysays. (Photo: Shutterstock)

Amazon.com Inc. is eliminating monthly bonuses and stock awards for warehouse workersand other hourly employees after the company pledged this week toraise pay to at least $15 an hour.

Warehouse workers for the e-commerce giant in the U.S. wereeligible in the past for monthly bonuses that could total hundredsof dollars per month as well as stock awards, said two people familiar withAmazon's pay policies. The company informed those employeesWednesday that it's eliminating both of those compensationcategories to help pay for the raises, the people said.

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Amazon received plaudits when it announced Monday that thecompany would raise its minimum pay. The pay increase warded offcriticism from politicians and activists, and put the company in agood position to recruit temporary workers for the importantholiday shopping season.

Even after the elimination of bonuses and stock awards, hourlyoperations and customer-service workers will see their totalcompensation increase, the company said in a statement.

“In addition, because it's no longer incentive-based, thecompensation will be more immediate and predictable,” Amazonsaid.

Workers whose pay was already above $15 per hour will get hourlyraises of $1, according to two people familiar with the matter whoasked not to be identified discussing the company's compensationpractices. Some long-time workers expressed frustration that theirraises are small compared with newly hired workers who will seehourly pay bumps of as much as 40 percent.

A higher hourly wage that new workers immediately receive is abetter recruiting tool in a tight labor market than stock optionsthat take years to materialize, especially in the warehousingindustry that sees high turnover, said David DeBoskey, anaccounting professor at San Diego State University. Amazon said itwill hire 100,000 seasonal workers for the holiday crush this year,and temporary workers don't get stock.

“In a tight labor market, when you're the leader paying $15 anhour, that's a big advantage,” DeBoskey said. “They probablyrealized people weren't applying for warehouse jobs for the stockoptions.”

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