Apple to extend full health benefits to its part-time employees
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.
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.
Comments
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?!
and people will experience will be more productive than new people
Here's to a single payer public option.
and guess who is going to administer it. the same evil insurance companies
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.
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.
Now we need Steve to start lobbying for Medicare For All / HR 676.
I wonder if Gore is influencing them or is Apple just decided to start becoming a political/social force?
Finally, a large corporation with a conscience and the will to do the right thing.
And obscene profits!
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.
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.
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.
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>