Unionization Threat Looms
Apple Inc. is increasing the wages of its workers in the U.S. by 10% and more as it faces unionization attempts across all its retail stores and a tight labor market.
The pay hike of Apple
As per Bloomberg News, the Cupertino, California-based tech company is increasing its compensation budget for 2022. In a statement Wednesday, Apple said it would hike the minimum hourly wages for its workers to $22 minimum, which is a 10% hike over last year.
The move follows an extra payout in February amidst inflation woes and after some workers complained about working conditions during the pandemic.
As per an email to the employee, the company is accelerating its annual performance-based pay increase for corporate and retail team members by three months. In several parts of the U.S., the company contends with unionization efforts, including places like Maryland, Georgia, Kentucky, and New York. The retail chief of the company, in a video message, said that the company has an open, direct, and collaborative relationship with the employees, and they are worried if another organization comes in between that relationship.
In an email, a Labor law professor at Seattle University, Charlotte Garden, said that when companies announce improvements to counter unionization campaigns, they may be interfering with the free choice of their employees. The risk is that the employees perceive this incentive as contingent on voting against unionization. If they vote for union representation, the organization will play tough.
U.S. tech companies face a shortage of workers as many left the workforce during the pandemic, and others have chosen flexible options. Microsoft Corp. is among those software makers who are spending aggressively to stay competitive and plans to double its salary budget in 2022 to retain employees.
Another factor driving up an expectation of pay increase is the rising inflation. As per data released by Government Wednesday, the U.S. consumer prices rose 8.3% in April.
According to regulatory filings, Apple Inc. has approximately 154,000 full-time or equivalent employees. Its starting wages are above the country’s nationwide minimum wage, $7.25 since 2009, and the floor wage in New York City is $15. So far, other tech companies have functioned without any formal workers union; some companies, such as Starbucks Corp. and Amazon.com Inc., have seen successful unionization.
