Sunday, July 1, 2012

Letter to the New York Times (regarding Apple's "underpaid" Army)

Letter to the New York Times:

In your June 23, 2012 article Apple's Retail Army, Long on Loyalty but Short on Pay, your journalist implies that your inquiry, four months ago, into Apple's compensation arrangement with retail employees has inspired an acceleration in pay increases. On behalf of the employees of the next unusually profitable enterprise you would attempt to aid, and the whole of society, I ask that you refrain. While your intentions I suspect would be noble, I'd like you to think a little deeper and consider the harm in your actions.

Apple has provided a wonderful opportunity for entry level Americans to learn from one of history's truly great organizations. By coercing a higher wage than market forces demand, you compel one, if not all, of the following outcomes (as Apple necessarily institutes margin-maintaining measures):Fewer new employment opportunities (you are aware of our current unemployment rate?), fewer skilled workers to step to rung two (then three, four and so on) of the economic ladder (you are aware of our nation's lack of skilled labor?), reduced employee benefits (Apple employees currently enjoy 401(k) matching, medical insurance, discounted pricing on Apple products and discounted pricing on Apple stock), higher iPhone, iPad, etc. prices to customers, lower dividends and capital gains to shareholders, and aslower pace of innovation.

Marty Mazorra

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