Apple Store —

Apple boosts employee pay as workers attempt to organize

Labor force and economic factors are driving the change.

Apple boosts employee pay as workers attempt to organize

Apple plans to raise the starting pay of its hourly workers, according to a Wall Street Journal report. In the US, employees' pay will be at least $22 per hour, which could be higher in some markets. That's 45 percent higher than it was in 2018.

Additionally, Apple plans to increase starting salaries for corporate workers in the United States. It will also move up some employees' annual reviews by several months to enact pay increases as soon as July.

In a statement, an Apple spokesperson said:

Supporting and retaining the best team members in the world enables us to deliver the best, most innovative, products and services for our customers. This year as part of our annual performance review process, we’re increasing our overall compensation budget.

There are likely several reasons for this move. First, businesses of all sizes are having a harder time attracting and retaining talent in this stage of the COVID-19 pandemic.

Apple could be facing more challenges than other big tech companies because of its efforts to get employees back into physical offices (though that doesn't apply to hourly retail workers). It has repeatedly attempted to call employees into offices more days per week, but it has delayed those moves several times due to COVID-19 surges and organized employee resistance.

Apple recently lost an AI/machine learning leader who specifically cited the company's remote work policy as a reason for his departure. Last week, the company postponed an imminent requirement to bring office workers back on-site for three days a week.

Economic factors are at play, too. Inflation has been at its highest in decades, contributing to pay dissatisfaction. The recent volatility of tech stocks could also be a factor. Tech companies like Apple sometimes seek to entice workers with stock options on top of salary and other compensation, but current and prospective employees might feel less enthusiastic about stock benefits right now.

Finally, retail workers at three US Apple Store locations have announced unionization plans. Some union organizers called for Apple to increase its base hourly pay.

Channel Ars Technica