Apple Makes History With First US Union Labor Agreement

Apple Inc. AAPL and the union representing its retail workers in Towson, Maryland, have reached a preliminary labor agreement. This marks the first time the tech giant has entered into such a deal in the United States.

What Happened: As reported by CNN, the preliminary labor agreement was finalized late Friday. This is a first not only for an Apple store but also for any of the company’s U.S. workers.

The retail employees at the Towson Apple store became members of the International Association of Machinists union in June 2022 and have been negotiating their first contract since then. In May, they authorized a strike without setting a deadline.

The labor agreement, still pending ratification by a vote of the 85 rank-and-file members at the store, is a significant breakthrough. Other high-profile union organizing efforts, including those at Starbucks and Amazon, have not yet resulted in deals for their workers.

See Also: Apple Joins Meta And Google, Pledges Support For Biden’s AI Regulations

The Machinists union disclosed that the Apple store agreement includes scheduling enhancements for improved work-life balance and a 10% pay increase over the three-year contract. It also offers job protections like severance packages for laid-off workers and limits on contract employees.

Apple, which operates around 270 stores in the United States, has only one other store in Oklahoma City that has voted to unionize, joining a different union, the Communications Workers of America. However, this store is not included in the current tentative labor agreement.

An Apple spokesperson refrained from commenting on the tentative agreement, referring to a previous statement where the company expressed its deep appreciation for its team members and pride in offering them industry-leading compensation and exceptional benefits.

Why It Matters: This preliminary labor agreement is a significant milestone for Apple and its US retail workers. It sets a precedent for future labor negotiations and could potentially influence other tech companies to follow suit. The deal also highlights the increasing power and influence of unions in the tech industry, a sector that has traditionally been resistant to unionization. The outcome of the ratification vote by the Apple store workers will be keenly watched by industry observers.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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