Amazon full-time and part-time frontline workers will get $300 and $ 150-holiday bonuses, respectively.  The special dividend will cost the giant retailer nearly 500 million dollars.

By the end of the 2020 fiscal year, the company will spend $1 billion on special bonuses since it gave out roughly $500 million in “thank you” bonuses last June to employees.

Amazon’s senior vice president of retail, Dave Clark, said that “we head into the peak of the holiday season, we want to share our appreciation.”

Amazon, along with other retailers, has been experiencing dizzying growth since the height of the pandemic. Frontline retail workers have been more than essential. Thousand of them got infected with covid, and many lost their lives. A 300-dollar holiday bonus, although a good perk, is not enough.

Frontline workers treatment during the Pandemic

According to its report, 19,000 Amazon frontline workers contracted the coronavirus.  The e-tailing giant failed to inform its employees because executives were worried about a potential walkout.

Amazon’s employees were complaining and protesting for better pay and safer working conditions before covid-19. The retailer made a few changes to its warehouses, but they are not close to the better protective measures employees wanted the company to implement.

Amazon Exponential Growth during the Pandemic

Retailers have benefited from the pandemic greatly.  Amazon is the chief amongst them, with its total net sales already at $260.5 for nine months ended September 30, 2020. 

Amazon might end the 2020 fiscal year, with total net sales of $380 billion since its Q4 total net sales forecast is about $120 billion.  Amazon’s 2019 total net sales were about $260.5 billion.

Back in July, Jeff Bezos, the founder and CEO of Amazon added $13 billion to his net worth on a single day.  According to the Bloomberg Billionaire Index, Mr. Bezos’ net worth is now $187 billion, making him the world’s richest person.

Jeff Bezos’ vast wealth is due to Amazon’s stock performance, which increases 73% year to year so far. 

Should Amazon Workers Be Thankful?

Amazon’s workers would not rejoice over the $ 300-holiday bonus news.  By the end of the 2020 fiscal year, Amazon full-time and part-time frontline workers will get $600 and $300 in total bonuses. The company spending an additional $1 billion on compensation is commendable.  

However, considering the company’s increase in total net sales,  the CEO’s stratospheric net worth, and its stock performance, Amazon still has room to do more for its employees.