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Apple to extend full health benefits to its part-time employees

post #1 of 67
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Starting in January 2010, part-time Apple employees who have been with the company for one year will receive full medical insurance coverage, as part of their compensation.

Gary Allen at ifoAppleStore reported that the benefits now only offered to full-time employee will be extended to part-timers, including those at retail stores, early next year. Those who work as little as 15 hours per week and have at least one year of tenure with the company are said to qualify, according to sources.

Apple's retail locations employ an estimated 9,900 part time workers who could benefit from the change. At a presumed average cost of $8,000 per year, per worker, that could reportedly amount to around $80 million in expenses.

Last quarter, Apple's brick-and-mortar stores brought in $1.867 billion in revenue, a 9 percent year-over-year increase. At the end of the September frame, 273 total stores were open. In all, each location brought in an average of $7.1 million in revenue in the three-month span.

Apple provides insurance coverage for individuals and their spouse, domestic, or same-sex partner. Up to 65 percent of each full-time employee's coverage is said to be currently covered by Apple, and the same policy will reportedly be extended to part-time workers.

"According to the sources, the improved medical benefit sprang from significant dissatisfaction that emerged over the past year among part-time company employees," the report said. "The input led to a company survey of the employees, intended to identify possible areas for improvement. A recurring topic of the feedback was improved benefits, and medical insurance in particular."

The move comes as Microsoft has made attempts to recruit Apple staffers for its own fledgling retail operation. Numerous reports have alleged that Microsoft has offered Apple retail store managers pay raises in an effort to lure them away, and asked those ex-managers to attempt to bring their most seasoned Apple employees with them.

Last week, coinciding with the launch of Windows 7, Microsoft opened its first retail store in Scottsdale, Ariz. An AppleInsider reader who attended the event said that at least one former Mac Specialist was seen working at Microsoft's store.


Apple's stores saw 45.9 million visitors in the last quarter alone. For the entirety of 2009, they raked in $6.5 billion in revenue, amounting to $1.4 billion profit. The retail outlets play an important role in Apple's market presence, as the company said half of the 670,000 Macs sold in its stores last quarter were to customers new to the platform.
post #2 of 67
Quote:
Originally Posted by AppleInsider View Post

Starting in January 2010, part-time Apple employees who have been with the company for one year will receive full medical insurance coverage, as part of their compensation.

And the stock takes a tumble for that?!
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post #3 of 67
Here's to a single payer public option.

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post #4 of 67
supposedly the Geniuses have to go to the HQ to get trained. if there is a lot of churn, it's probably cheaper to offer health benefits to all retain employees than to pay to train new people on a regular basis.

and people will experience will be more productive than new people
post #5 of 67
Quote:
Originally Posted by Aizmov View Post

Here's to a single payer public option.

and guess who is going to administer it. the same evil insurance companies
post #6 of 67
This probably gives Apple more bargaining power with insurance companies that it already had.
post #7 of 67
Quote:
Originally Posted by Aizmov View Post

Here's to a single payer public option.

And yes, by all means, we should extend the health care reform debate to yet another formerly safe place, AI.

Hooray for Apple and the part-time employees (I know one) that will potentially benefit. Keep in mind though that Apple is an extreme exception to the laws of business reality and that there's only ever going to be one Apple.
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post #8 of 67
Nice move on Apple's part. I think that's awesome.

Incidentally the health insurance that Apple has for their employees is top-notch. I know someone who works for Apple corporate (hardware design - and no, he doesn't tell me anything) and he had a heart attack a couple of years ago. The total (pre-insurance) cost for all the treatment, ICU stay, etc. came to roughly $125,000. Their out of pocket expenses were somewhere in the neighborhood of $4000-$5000. Still not cheap, but compared to the entire bill it's a freaking bargain.
post #9 of 67
Direct beneficiaries of the Apple Tax!
post #10 of 67
Thats awesome. Good for Apple.
post #11 of 67
No better way to build an effective workforce than to keep them alive.

Now we need Steve to start lobbying for Medicare For All / HR 676.
post #12 of 67
Wow! Apple has really decided to start becoming politically correct these days.

I wonder if Gore is influencing them or is Apple just decided to start becoming a political/social force?

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post #13 of 67
Finally, a large corporation with a conscience and the will to do the right thing.
post #14 of 67
Quote:
Originally Posted by jdlink View Post

Finally, a large corporation with a conscience and the will to do the right thing.

And obscene profits!
post #15 of 67
Quote:
Originally Posted by iPoodOverZune View Post

And the stock takes a tumble for that?!


Of course, it costs the company money to cover these part timers. This means higher product costs and thus less people are able to afford to buy Apple's products.

Decreased sales means less profit, thus the drop in the stock price.


For awhile there the DOW would jump the higher the loss of jobs occurred every month, companies slashing costs to make themselves profitable again.

Now it's turned around, the higher the job losses the lower the DOW, because 70% of the US economy is consumer spending. Most consumers can't spend without a job (or credit for that matter).

It's the US deflation brought on by the flood of cheap Chinese goods.


What I suspect is going to happen is Apple is going to shorten it's workers hours, meaning more part time and less full time workers, to meet slowing demand for it's products due to the economy and/or to give their store managers more flexibility (and power to weed out the rebels by gradually lowering their hours till they quit)


Seems the Apple Store walkout threat had it's consequences.


Carrot and stick approach. Health care and the threat of shorter hours.


Employees will work harder and put up with more BS to get more hours too.
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post #16 of 67
this is a great step for apple - especially its retail employees. it will pay for itself in lower attrition and the retention of experienced workers. should have happened years ago.
post #17 of 67
I don't know how anyone can see this as a negative thing.
post #18 of 67
Quote:
Originally Posted by MacTripper View Post

Of course, it costs the company money to cover these part timers. This means higher product costs and thus less people are able to afford to buy Apple's products.

Decreased sales means less profit, thus the drop in the stock price.


What I suspect is going to happen is Apple is going to shorten it's workers hours, meaning more part time and less full time workers, to meet slowing demand for it's products due to the economy.


Win7 Netbooks are going to rule this holiday season.


Why would the economy account for slowing demand if it hasn't so far? Last time I checked, the economy has sucked for a while now, and, if anything, is showing glimmers of at least modest rebounds in some sectors.

And all that while Apple has been beating the performance of the larger PC market.
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post #19 of 67
Quote:
Originally Posted by iPoodOverZune View Post

And the stock takes a tumble for that?!

Sure, why not!

The Market just saw Apple (the company) increase its operating cost with this announcement.

If Apple sells its products at the "sweet spot", they will need to increase market share or lower production costs and purchase cheaper materials to keep profit margins heading in the right direction while offsetting this new cost.

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post #20 of 67
Quote:
Originally Posted by iggypop View Post

this is a great step for apple - especially its retail employees. it will pay for itself in lower attrition and the retention of experienced workers. should have happened years ago.

Really?!

I know I always stayed at my "Sales Associate" job position because of insurance! </SARCASM>

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post #21 of 67
This is unfair to employees who work 14 hrs a week or less. How can Jobs fly in a private jet while those who work 14 hrs a week or less go without health insurance? And what about those of us who frequent the Apple Store and buy their products. I deserve health insurance too. While you're at it, I'd like a life insurance policy--and a Lexus. That's the type of economic justice I'm looking for.
post #22 of 67
Hahah. I want a job at apple
post #23 of 67
Quote:
Originally Posted by MacTripper View Post

Of course, it costs the company money to cover these part timers. This means higher product costs and thus less people are able to afford to buy Apple's products.

Decreased sales means less profit, thus the drop in the stock price.

I heard someone once say, "You have to make money to stay in business, but you're not in business only to make money."

Steve Jobs has repeatedly shown that he's in the game to make insanely great products -and, oh yeah, make a big stack of $$$.

If Apple were in it ONLY to make money, they'd divest themselves of EVERYTHING and run that huge pile of cash they have as an investment fund.

I'm glad Apple is not a "race to the bottom" company. Once we lose Steve, that may change - see MS and how they are doing under Steve B vs Bill G.

- Jasen.
post #24 of 67
Quote:
Originally Posted by DKWalsh4 View Post

I don't know how anyone can see this as a negative thing.

Hmmm, if you were a part-timer who left to go work for MS stores?
post #25 of 67
Quote:
Originally Posted by addabox View Post

Why would the economy account for slowing demand if it hasn't so far? Last time I checked, the economy has sucked for a while now, and, if anything, is showing glimmers of at least modest rebounds in some sectors.

And all that while Apple has been beating the performance of the larger PC market.


Tech as a whole is up due to a combination of factors.

1: Those out of work and looking

2: Those who are working and need it keep their job

2: Those "staycationing" and using tech to pass the time.


On the other hand Apple is consumer products company, not a corporate products company.

Most Apple products are considered luxury items and the consumer in general are not spending.


Win7 netbooks are going to sell well this holiday season because they will "do the job" most people use a computer for. Email, web and Office type software.

Laptops seriously damaged desktop sales and now netbooks are seriously damaging laptop sales.


Apple's stock has been headed upward despite a few pullbacks here and there, but they don't have a answer to netbooks.
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post #26 of 67
Quote:
Originally Posted by teckstud View Post

Hmmm, if you were a part-timer who left to go work for MS stores?

I must say, for once I agree!
post #27 of 67
Quote:
Originally Posted by MacTripper View Post

Apple's stock has been headed upward despite a few pullbacks here and there, but they don't have a answer to netbooks.

I think their profit margins are answer enough
post #28 of 67
Quote:
Originally Posted by teckstud View Post

And obscene profits!

Usually I like you. I don't say much to that effect, but I like the fact that you usually are the other side of things around here.

Apple is a business, and as much as I don't like their business practices (minus this one since it benefits people instead, and Apple can definitely afford to cover them) for keeping their eco-system so closed, are very anti-competitve, and that they charge too much for the exact same hardware as other companies, it is Apple's prerogative to do so. If they can make obscene profits, I won't tell them not to (but I will voice my opinions to the buyers out there in hopes they wisen up). They are a business, making profits is their goal. Apple is smart in many ways to make sure they have big profits. Nothing wrong there. There is a reason so many companies try to copy them (although I wish they wouldn't)

If you don't like their profits, then do something about it. Don't buy any more Apple products, like me. I even sold off my Macs and am so happy that I did! I would suggest the same to you. By buying and using their products means you are giving into the profit bolstering. Vote with your wallet. There are alternatives to mac. Even OSX86 route if you don't mind giving Apple 30 bucks (just don't complain about it if you do).

Anyhow, I'm glad you are a voice of dissent. Just, in this case, the comment (since Apple's doing right for once) comes off really shallow.
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post #29 of 67
Quote:
Originally Posted by MacTripper View Post

Tech as a whole is up due to a combination of factors.

1: Those out of work and looking

2: Those who are working and need it keep their job

2: Those "staycationing" and using tech to pass the time.


On the other hand Apple is consumer products company, not a corporate products company.

Most Apple products are considered luxury items and the consumer in general are not spending.


Win7 netbooks are going to sell well this holiday season because they will "do the job" most people use a computer for. Email, web and Office type software.

Laptops seriously damaged desktop sales and now netbooks are seriously damaging laptop sales.


Apple's stock has been headed upward despite a few pullbacks here and there, but they don't have a answer to netbooks.


What a load of unsupported B.S..
post #30 of 67
Once the public option is passed, Single Payer will follow pretty quickly. Apple is placing a safe bet.
post #31 of 67
Quote:
Originally Posted by jasenj1 View Post

see MS and how they are doing under Steve B vs Bill G.

Just look at the personalities of Bill Gate and Steve Ballmer.


Ballmer has been running the show since the beginning.


Ballmer is a big blowhard bully with a short temper and Gates is a alcoholic geeky wimp.


Don't expect anything to change, it's been the same all along!
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post #32 of 67
Quote:
Originally Posted by teckstud View Post

Direct benefactors of the Apple Tax!

I'm more than happy... in fact, I only wish they made Macs on American soil and offered the same benefits to those factory workers.

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post #33 of 67
Quote:
Originally Posted by dualie View Post

What a load of unsupported B.S..


Your lack of information doesn't necessarily negate my statement.
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post #34 of 67
Quote:
Originally Posted by MacTripper View Post

Of course, it costs the company money to cover these part timers. This means higher product costs and thus less people are able to afford to buy Apple's products.

That's not the case here. Apple's products are not priced based on cost. They are priced on what the company believe is the optimum price, considering market perception ("premium"), competition, strategic initiatives (e.g. if gaining market share in an area would be considered important). An increased cost would come straight off the bottom line, as the optimal price point wouldn't change.
Thus, no changes in sales.

Of course, there are positive sides too... better benefits should, on average, result in lower attrition (less training cost, more experienced staff) and happier employees with the benefits that entails (although that's harder to measure).
post #35 of 67
Quote:
Originally Posted by Zoolook View Post

I'm more than happy... in fact, I only wish they made Macs on American soil and offered the same benefits to those factory workers.

I second this motion.
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post #36 of 67
Quote:
Originally Posted by camroidv27 View Post

I second this motion.

Unfortunately, if they did that Macs would cost three times what they do now and Apple would go out of business.

The grim truth is that we're addicted to cheap Chinese labor, and all the societal ills that engenders, for both us and the Chinese. If the vast range of consumer goods that we import from China (or the next developing economy standing in line) were to be priced at levels commensurate with manufacturing based on a decent American living wage, the American consumer would totally lose their shit.

It's quite the paradox, isn't it? Cheap Walmart (and frankly, not so cheap everyone else) goods allow working people to afford crap while the global economy that produces those goods help drive down wages and eliminate job opportunities for those same people.
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post #37 of 67
Quote:
Originally Posted by camroidv27 View Post

Usually I like you. I don't say much to that effect, but I like the fact that you usually are the other side of things around here.

Apple is a business, and as much as I don't like their business practices (minus this one since it benefits people instead, and Apple can definitely afford to cover them) for keeping their eco-system so closed, are very anti-competitve, and that they charge too much for the exact same hardware as other companies, it is Apple's prerogative to do so. If they can make obscene profits, I won't tell them not to (but I will voice my opinions to the buyers out there in hopes they wisen up). They are a business, making profits is their goal. Apple is smart in many ways to make sure they have big profits. Nothing wrong there. There is a reason so many companies try to copy them (although I wish they wouldn't)

If you don't like their profits, then do something about it. Don't buy any more Apple products, like me. I even sold off my Macs and am so happy that I did! I would suggest the same to you. By buying and using their products means you are giving into the profit bolstering. Vote with your wallet. There are alternatives to mac. Even OSX86 route if you don't mind giving Apple 30 bucks (just don't complain about it if you do).

Anyhow, I'm glad you are a voice of dissent. Just, in this case, the comment (since Apple's doing right for once) comes off really shallow.

I do vote with my wallet. I never buy a 1st gen Apple product because I know I would have to buy it again in less than 18 months.
post #38 of 67
Quote:
Originally Posted by Zoolook View Post

I'm more than happy... in fact, I only wish they made Macs on American soil and offered the same benefits to those factory workers.


I agree, most tech devices are made by machine, so the labor is minuscule. It's because the corporate tax rate in the US is second highest the world, Japan is the highest (and see their economy now)

If our moronic government finally "gets it" like Bill Clinton finally did near the end of his presidency (and recession he couldn't solve) and lowers the corporate tax rate, the jobs will come back here.

Of course the rate has to be lowered and kept there, not a assault on capitalism when one party is in office and then change up when another party gets in.

When a company moves or opens a factory, it needs to stay profitable for as long as possible to promote stability and jobs.

More jobs, means more people can buy and creates more jobs. More jobs and income means more tax income for government to take care of things, not borrow and spend and dig a bigger hole.


The US has a lot of land space and a growing population, unlike Europe or Japan. We can pull out of this economic mess if the socialist mentality that has invaded Washington (and the nation) is changed.
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post #39 of 67
Quote:
Originally Posted by teckstud View Post

I do vote with my wallet. I never buy a 1st gen Apple product because I know I would have to buy it again in less than 18 months.

Well, at least that's a start. I would suggest not buying any Apple products if you don't want to support the profits. Unlike your signature, I did go Mac, and definitely came back (if you count Linux as back)... twice.
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post #40 of 67
I would say that this is a good and overdue move on Apple's part.

As for the stock prices... I think that people have decided to realize some of their gains. The prices are sure to rise again when the x-mass season is over and the tallies are in.
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