Tech giant Apple announced Thursday that it would raise its starting minimum hourly wage to $22 for U.S. employees working in retail locations, corporate offices and call centres as the has economically upended the nation.
Apple Raises Starting Associate Pay to $22/Hour Amid Rising Inflation
The company said the increases are designed to “offset higher costs of living” caused by rising over the past year -19 outbreaks that have left millions of Americans out of work.
Apple is raising its starting pay to $22 per hour for U.S. employees working at the company's stores, corporate offices and call centres.
The move comes amid growing pressure on companies to pay employees more as wages stagnate and the cost of living rises in many parts of the country. It also follows Apple CEO Tim Cook's criticism of the current administration's policies on trade as well as climate change.
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| Apple Raises Starting Associate Pay to $22/Hour Amid Rising Inflation |
The tech giant says it will also award grants worth $2,500 to workers who can use them for paying off student debt.
Apple said it will also award grants of $2,500 to workers who use them for paying off student debt.
Apple said the starting pay increase will take effect in October and apply to all hourly U.S. employees. The company also plans to launch a new employee education fund that will pay for professional development courses related to coding, engineering and business skills training.
The tech giant has been under pressure from activist investors Carl Icahn and Jana Partners LLC, which last year called for a bigger share buyback program and higher dividends. Apple shares are up more than 20 per cent this year through Friday's close amid optimism about its coming iPhone lineup as well as expectations that it could introduce a news subscription service next year as part of an integrated effort with Apple News+.
Apple CEO Tim Cook has criticized the current administration's policies on trade as well as climate change.
In an interview with The Washington Post, Cook said he had been a vocal critic of the administration's trade policies for years and that it was "not the first time we've been at odds with this administration." He added: "I think one of the things that Apple has done in its history is to stand up for civil rights and human rights," saying he saw his company's actions as part of its DNA.
Cook also addressed what he sees as his company's role in reducing greenhouse gas emissions. The CEO said Apple was committed to cleaner energy sources and would continue investing in renewable power projects around the world even when faced with criticism from President Trump over their environmental impact.
The new pay rates, which will go into effect in January 2021, are aimed at offsetting the effects of inflation, which has soared over the past year.
"Apple is committed to creating jobs that offer competitive pay, benefits and an exciting environment," said Apple CEO Tim Cook. "We're proud of our employees and their contributions."
While the new pay rates are aimed at offsetting the effects of inflation, which has soared over the past year, Apple's competitors have not followed suit yet. It remains to be seen how much this will impact future job candidates' decisions on which companies to work for.
Apple's new pay rates will be implemented at a time when coronavirus infections are surging across the country, prompting many states to impose new restrictions on businesses.
Though the CDC notes that most people who are exposed to coronavirus do not become ill, those who do fall ill usually experience severe symptoms including fever, cough and shortness of breath within two days after being exposed. Most patients recover within two weeks without needing medical care; however, in some cases—particularly among older adults—the infection may cause serious complications such as pneumonia or death.
A few weeks ago, labour groups representing Amazon warehouse workers in Alabama filed a complaint with the National Labor Relations Board accusing a manager of making threats against anyone who supported efforts to unionize.
You may remember that Amazon has been in the news recently for allegedly mistreating its workers. Employees have accused the company of unfair practices, including bullying employees who try to organize a union, and last year Amazon came under fire after one employee died of heat stroke while working at one of its warehouses.
These latest allegations are just another example of how Amazon can treat its employees cruelly—and they're certainly not the first instance of Amazon being accused of unfair labour practices.
It is unclear if Amazon will also move to raise its minimum wage for front-line workers.
It is unclear if Amazon will also move to raise its minimum wage for front-line workers. In March, the company announced that it would raise its minimum wage to $15 per hour, but this only applies to employees who already had a base salary of at least $15 and were eligible for overtime pay.
In January, Apple announced that it would begin offering student debt relief to some employees in the form of an up-front bonus when they borrowed money from Apple's employee loan program. However, this only applies to those who have received a full-time job offer and are eligible for benefits at an Apple store or one of its suppliers or partners within six months after graduation day — meaning that many entry-level employees aren't eligible for the benefit either way
Companies are taking steps to help their front-line workers stay afloat amid economic upheaval brought on by the pandemic
In the wake of an economic downturn brought on by the pandemic, companies are taking steps to help their front-line workers stay afloat. "The economy is still a mess," says Christine Lagarde, managing director of the International Monetary Fund (IMF). "We're seeing some growth in some places but not everywhere."
With inflation rising rapidly in many parts of the world, workers are struggling to make ends meet.
Apple is raising its starting pay to $22 an hour for U.S. employees at the company's stores and call centres, but it remains unclear if Amazon will follow suit with a similar move
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