Amazon.com Inc (NASDAQ:AMZN) informed its U.S.-based workers on Saturday that the company is ending its policy of offering paid days off for those who test positive for COVID-19.
What Happened: Starting Monday, May 2, front-line workers at Amazon will receive an excused leave of up to five unpaid days, according to a spokesperson who spoke to CNBC.
This is a change in policy from the seven days of paid time off workers were receiving.
The company’s policy has progressively changed since the pandemic began. Amazon initially allowed for 14 days of paid leave for those diagnosed with COVID, but then later reduced that number by a week.
Amazon is also ending its vaccine incentive program, which rewarded workers with $40 for each dose of COVID-19 vaccine they received. The company says it will also stop notifying employees of COVID cases in the work place, unless it’s required by local laws.
“The sustained easing of the pandemic, ongoing availability of COVID-19 vaccines and treatments, and updated guidance from public health authorities, all signal we can continue to safely adjust to our pre-COVID policies,” the company said in an internal memo.
Also Read: This Investor Prefers Meta Stock Over Amazon And Microsoft: Here's Why
Why It Matters: The updated policies are being announced in the midst of unionization efforts by Amazon workers at a Staten Island, New York warehouse. The workers at the LDJ5 Amazon warehouse recently held a union election, and the votes will be counted on Monday by the National Labor Relations Board.
If the proposal to unionize is approved, it will become the second company warehouse to do so. Workers at another Amazon facility on Staten Island voted to unionize with the Amazon Labor Union last month.
Amazon reported first-quarter financial results last week with first-quarter revenue of $116.4 billion, up 7% year-over-year, and a net loss of $7.56 per share, compared to earnings of $15.79 per share in the year-ago period.
Shares of Amazon closed at $2,485.63, down 14% on Friday, according to Benzinga Pro.
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