Apple raising starting pay to $22 an hour for U.S. workers

Apple is hiking wages as the company faces a still-tight labor market, inflation and a fledgling union drive.

The tech giant announced in an email to employees that it would increase its compensation budget and boost pay for its corporate and retail employees nationwide, according to the Wall Street Journal

It also informed some employees that their annual reviews would be advanced by three months and the new pay will take effect in early July.

Apple will raise the starting pay for its U.S. retail employees to $22 an hour, up from $20, reported CNBC. Depending on the region, some stores may have higher starting pay.

“Supporting and retaining the best team members in the world enables us to deliver the best, most innovative, products and services for our customers,” an Apple representative said in a statement to CNBC. “This year as part of our annual performance review process, we’re increasing our overall compensation budget.”

The pay increase comes as Apple is looking at its first possible unionized store. Employees at a store in Atlanta will vote in June on whether to organize with the Communication Workers of America. It will be the first such election at an Apple retail location in the United States.

Union drives have also been launched at Apple stores in New York City, Towson, Md. and, most recently, Louisville, Ky.