An Apple Union? Store Employees Protest Over Pay 'That Is Not Keeping Pace With Inflation'

Barely a week after a report suggested Apple Inc AAPL is raising pay for Apple store workers, it has emerged that employees aren't too happy with what they are earning.

What Happened: Employees at several Apple store locations are in talks to unionize due to disgruntlement over wages, Washington Post reported.

Apple's retail employees get on average about $17 to $30 per hour, depending on their role and seniority, the report said. The wage rates have not kept pace with inflation, the report added, citing the employees.

The retail price inflation report released by the Department of Labor earlier this month showed a 7.5% year-over-year increase in the consumer price index, marking the fastest rate of increase since 1982.

Related Link: Why This Apple Analyst Predicts Another 'Record Year' From Cupertino

Last Friday, Bloomberg reported Apple communicated about pay increases ranging from 2% to 10% to store workers who have been with the company since the pre-COVID-19 pandemic period. These were in addition to the annual raises Apple does at the end of its fiscal year in September, the report added.

The Washington Post report also said managers in at least one of the Apple Stores have begun talking employees out of the purported unionization plans.

Why It's Important: Talks of employee upheaval could not have come at a worse time. Proxy advisory firm Institutional Shareholder Services has taken up cudgels against the disparity between executive compensation and worker's pay at Apple.

In a letter to shareholders, the firm urged shareholders to vote against CEO Tim Cook's compensation package, estimated to be about 1,450 times that of what an average Apple employee makes, the firm contended.

AAPL Price Action: Apple shares were edging down 1.14% at $167.68 Friday morning at publication.

Photo: Courtesy Apple