Friday, May 27, 2022

Apple to hike starting pay for retail workers as they push to unionize

BY MEGAN CERULLO
MAY 26, 2022 / 5:01 PM / MONEYWATCH

Apple is raising wages for its retail workers as the technology giant faces a unionization push at the company's stores.

Starting pay for Apple's hourly workers in the U.S. will rise $22 an hour, the Wall Street Journal first reported. The iPhone maker announced the new pay changes in an email announcing an increase in its compensation budget to employees Wednesday. Starting salaries for employees, meanwhile, are also expected to rise.

"Supporting and retaining the best team members in the world enables us to deliver the best, most innovative, products and services for our customers," an Apple spokesman said in a statement to the Wall Street Journal. "This year as part of our annual performance review process, we're increasing our overall compensation budget."

Apple did not immediately reply to CBS MoneyWatch's request for comment.

The pay increases come as more Apple workers push to form a union and gain a seat at the negotiating table. For one, workers have revolted against Apple's return-to-office policy, calling it "inflexible" in an open letter to executives.

"The Hybrid Working Pilot is one of the most inefficient ways to enable everyone to be in one room, should the need arise every now and then," workers said of the plan laid out by their employer.

"Stop treating us like school kids who need to be told when to be where and what homework to do," the letter also stated.

Apple CEO Tim Cook's pay package this year was valued at $98.7 million, including a $3 million salary.

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As more stores unionize, Starbucks vows to boost worker pay


MAY 3, 2022 / CBS/AP

Starbucks' sales climbed to record levels in the coffee chain's second quarter, but its profits took a hit from climbing labor and ingredient costs and as additional stores unionize.

The Seattle coffee company — which welcomed back former CEO Howard Schultz last month as its interim leader — said revenue rose 15% to a record $7.6 billion in its 13-week quarter, which ended April 3. That was in line with Wall Street's estimates, according to analysts polled by FactSet.

But net earnings rose just 2% to $674 million. Starbucks' adjusted earnings of 59 cents per share fell short of analysts' forecast of 60 cents.

On Tuesday, after a series of meetings with workers around the country, Schultz unveiled $200 million in additional investments in worker pay and training. That includes pay raises for employees who have been at the company for at least two years as well as a doubling in training time for new baristas and shift supervisors.

Starbucks is also reintroducing a coffee mastery program for employees and considering other benefits like increased sick time.

But there's a catch: Workers who have voted to unionize or stores that have petitioned to hold a union election won't be eligible for those benefits. Instead, U.S. labor law requires stores to negotiate their own contracts with Starbucks.


As of Tuesday, workers at more than 250 U.S. stores had filed petitions with the National Labor Relations Board to hold union elections, labor organizers said. Fifty of those stores had voted to unionize with Workers United, a branch of the Service Employees International Union.


While union membership has been dropping for decades, interest in organized labor has increased during the pandemic. Starbucks isn't alone in facing an increase in unionization efforts among its workers, with Amazon workers at a Staten Island facility voting in favor of unionizing.

These efforts come amid nationwide labor shortages and as a record number of Americans quit their jobs, providing more leverage to workers who want to unionize.

$15 an hour by this summer


Starbucks announced a $1 billion investment in employee wages and benefits last fall, with a plan to lift U.S. workers' pay to at least $15 per hour by this summer. Schultz said Tuesday those increases will give the stores the workers they need to handle customer demand.

Schultz opposes the unionization effort, insisting the company functions better when it works directly to its employees. But he noted that employees are under "tremendous strain" due to strong customer demand and pandemic-related changes in the business, including a surge in mobile and drive-thru orders. New investments will improve employee recruiting and retention, he said.

"We must reintroduce joy in the customer and emotional connection back into the partner experience," Schultz said Tuesday in a conference call with investors.

Starbucks said its same-store sales — or sales at stores open at least a year — rose 7% globally in the second quarter, surpassing Wall Street's estimate of 6.5%. That was largely on the strength of the business in North America; international same-store sales fell 8% due to coronavirus restrictions in China.

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