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Apple to Continue Paying Contract Workers While Campuses Are Shuttered

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Apr 12, 2001
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Contract workers at Apple's Silicon Valley campuses will continue to be paid their normal wages while Santa Clara County's shelter in place order is in effect, an Apple spokesperson told The Wall Street Journal today.


The announcement was a departure from Apple's original plans. Over the last few days, hundreds of contract workers were told that their jobs would be suspended without pay, but Apple appears to have reversed course on that decision.

Apple's contract workers include janitors, bus drivers, and other individuals who perform similar functions on its Apple Park and Infinite Loop locations.
On Monday, in response to an inquiry from The Wall Street Journal, a spokeswoman said the janitors' pay would continue. "We're working with all of our suppliers to ensure hourly workers such as janitorial staff are being paid during this difficult time," spokeswoman Kristin Huguet said after the Journal's inquiry about the job elimination notices.
It appears that many contractors were mistakenly informed that their jobs would be suspended, and it's not clear why. One janitor at Apple's campus, Patricia Cortez, was called into an Apple office on Sunday alongside colleagues and told that her job had been eliminated.

Bus drivers were also concerned about payment as Apple had not told WeDriveU and Hallcon Corp, two companies who manage Apple's shuttle service, whether contracts would be paid.

Apple previously said that it is paying all of its hourly workers, such as retail employees and cafeteria staff, but had not previously confirmed that it was going to continue paying contractors.

Apple's Silicon Valley campuses will be shut down until at least May 3 due to the extension of the shelter in place order in the Bay Area. Apple's retail stores in the United States and other countries outside of China also remain closed, though some could begin opening as soon as the first half of April.

Article Link: Apple to Continue Paying Contract Workers While Campuses Are Shuttered
 

julesme

macrumors 6502
Oct 14, 2016
305
1,079
San Jose
That would have been absolutely pathetic to cut those workers’ pay just to save $35 million (that’s an ANNUAL figure for the 600 workers, per the Journal). AAPL has >$200BN in cash.

Glad to see they reversed course.

Also - It’s worth noting that it doesn’t even make financial sense to cut their pay because the brand damage from potential negative publicity is worth a lot more than $35 million.
 
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kennyt72

macrumors member
Jan 15, 2011
95
348
Chelsea, London, England
Good on Apple! I wonder if the other tech giants are following suit...
Read the article and you'll get the answer, it seems Apple is being a little shady here and saying the workers wouldn't get paid then backtracking and saying they would when they were challenged about it, they should have said they'd pay them from day one just like Facebook and Google did.
 
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Solomani

macrumors 601
Sep 25, 2012
4,062
8,709
Slapfish, North Carolina
Of course they have to keep the contract workers. I'm sure many of them are Apple Campus security.... someone has to keep watch of the Apple Spaceship to prevent the Martians from swooping in and stealing the spaceship campus!
 
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paul4339

macrumors 65816
Sep 14, 2009
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Glad to see some good news. Supposedly Facebook and Alphabet has suspended contractors (according to United Service Workers West Union)... maybe they will reverse their stand.
 
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paul4339

macrumors 65816
Sep 14, 2009
1,407
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I can't blame a company for doing so... each company is different. Some do it because they are very tight with their money or must stick to rigid budgets, its too easy to judge all companies ...

It's just good to see people get some relief who might be very stressed at his time with outstanding bills and rent.
 
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az431

macrumors 68000
Sep 13, 2008
1,994
5,780
Portland, OR
That would have been absolutely pathetic to cut those workers’ pay just to save $35 million (that’s an ANNUAL figure for the 600 workers, per the Journal). AAPL has >$200BN in cash.

Glad to see they reversed course.

Also - It’s worth noting that it doesn’t even make financial sense to cut their pay because the brand damage from potential negative publicity is worth a lot more than $35 million.

It’s pathetic to not pay people who don’t come to work?

okay then.
 
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rednip

macrumors newbie
Sep 15, 2016
3
6
Bad optics aside, the real trouble for Apple is that many laid off workers wouldn't return, some would find other work, others would simply be very disheartened, even if they returned. Considering interviews, background checks and job flow knowledge, once the stay-at-home order is lifted, it could take them months before support staff is fully up to levels from before.
 
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Baymowe335

macrumors 604
Oct 6, 2017
6,616
12,370
That would have been absolutely pathetic to cut those workers’ pay just to save $35 million (that’s an ANNUAL figure for the 600 workers, per the Journal). AAPL has >$200BN in cash.

Glad to see they reversed course.

Also - It’s worth noting that it doesn’t even make financial sense to cut their pay because the brand damage from potential negative publicity is worth a lot more than $35 million.
Their net cash is far lower, just FYI...and paying contractors isn’t an obligation.
 
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newyorksole

macrumors 601
Apr 2, 2008
4,264
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New York.
As well they should. As much money as they have, it'd be a crime not to.

Exactly. I know people are probably saying “Apple doesn’t HAVE to pay them. How do you think they’re so rich?”

But nah... Apple has a BOATLOAD of money. They can afford to pay their workers for months.
 
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citysnaps

macrumors 604
Oct 10, 2011
6,847
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San Francisco
Exactly. I know people are probably saying “Apple doesn’t HAVE to pay them. How do you think they’re so rich?”

No... That's not how Apple is "so rich."

Apple is extremely successful because the company develops, manufactures, sells/ships, and supports products that many millions of repeat customers want, and are willing to open their wallets and pay premium prices, year after year after year. With respect to phones, for example, that's around 500,000+ iPhones per day (on the average).
 
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newyorksole

macrumors 601
Apr 2, 2008
4,264
4,872
New York.
No... That's not how Apple is "so rich."

Apple is extremely successful because the company develops, manufactures, sells/ships, and supports products that many millions of repeat customers want, and are willing to open their wallets and pay premium prices, year after year after year. With respect to phones, for example, that's around 500,000+ iPhones per day (on the average).

I know why Apple is successful. I’m saying: People use the argument “rich people stay rich by only using money on wise things. not just by giving it away.”

This being 1 of those wise things they can spend money on and remain with a ton of cash.
 
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