Technology giant Apple Inc AAPL faces negative headlines concerning a case from the U.S. Department of Justice.
Apple and its stock could now see pressure as shareholders grapple with what increased unionization of the company's retail stores could mean.
What Happened: Apple has a recent history with unionization at two retail stores in Oklahoma and Maryland, which successfully unionized.
The company is now seeing a new push from a fifth store to petition to unionize in what could be the third store to be successful.
The company's retail store in Short Hills, New Jersey, which is located in a mall, is the latest Apple retail store to petition to organize, according to a report from Bloomberg.
The store, which has 104 employees, saw a file with the National Labor Relations Board on Monday. The staff is being represented by the Communications Workers of America according to the report.
"We strongly believe forming a union is the best way to ensure all Apple workers receive the respect, pay, benefits and working conditions we deserve," John Nagy, who is a member of the organizing committee for the New Jersey story.
Nagy said Apple has responded to union organizing by violating workers' rights across the country at retail stores.
"We hope Apple's executives will recognize their opportunity to stay on the cutting edge by taking a different approach."
Nagy added that the group is asking Apple "not to interfere" in the efforts and allow workers determine whether they should form a union.
"We have always paid our retail teams in the top tier of the market," Apple said in a statement, shared by Bloomberg. "And we provide exceptional and comprehensive benefits for all full- and part-time employees."
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Why It's Important: The stores in Towson, Maryland, and Oklahoma City, Oklahoma, are the only two Apple U.S. stores to successfully unionize. Stores in Atlanta, Georgia, and St. Louis, Missouri, have previously filed petitions to unionize.
Towson was the first Apple store to unionize in June 2022. The Towson and Oklahoma City workers have not been able to reach a collective bargaining agreement with Apple since unionizing according to the report.
Apple held meetings with retail workers in 2023 in an effort that was seen by employees as a push to fight back against unionization efforts.
The petition filed by the New Jersey store could reignite efforts from numerous Apple retail stores across the country.
While unions can be good for employees, they can bring question marks for shareholders of public companies with the potential of higher employee wages and benefits and rising costs for companies.
Companies like Starbucks Corp SBUX and Amazon.com Inc AMZN are among the U.S. companies that have seen individual locations around the country push for forming unions to demand better pay and compensation.
AAPL Price Action: Apple shares closed Wednesday down 1.11% to $167.78 versus a 52-week trading range of $159.78 to $199.62.
Photo: John Gress Media Inc via Shutterstock
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