Early Employee Raises Are Tiny Part of Store Revenues

May 28, 2012

Apple will generously provide annual raises for its retail store employees three months early, but the company won’t have trouble paying for the hikes—it can be generated by the revenues from just 14 hours and 15 minutes of the retail stores’ operation. The easy pay-off demonstrates the huge earnings of the retail chain, and the relatively small slice of revenues that comprises employee pay, estimated to be $1.7 billion annually. The pay raises, from one percent to five percent depending upon store performance, will be paid on June 30th, three months before the usual September payout date, according to 9to5Mac.com. Based on an average $20 per hour wage (see comments), the early raise could be worth $520 for an employee receiving a five percent hike. According to conservative calculations, in order to pay a five percent raise to all 42,200 full-time equivalent retail store employees, Apple would pay out about $21,944,000. That amount could be generated by just one day of store revenues. Alternatively, the pay hike could be paid from profits over two days, 14 hours and 34 minutes. If the average pay raise were just three percent, it could be paid within just eight hours and 34 minutes of revenues. Employee benefits and compensation have been among several issues raised by an ever-vocal group of Apple store employees. Just over a year ago, the Apple Retail Workers Union was formed by a San Francisco store employee to increase discussion of workplace issues at the company’s stores. Beyond payroll, Apple spent $612 million on capital asset purchases for its retail operation during fiscal 2011. The company does not break out other annual expenses for its chain, other than to say total lease commitments now total about $2.8 billion.

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