Apple Reaches Landmark Labor Agreement in the US
Apple has reached a tentative labour agreement with the union representing retail workers at its Towson, Maryland store, marking the first US labour deal for any of the tech giant’s American employees.
The workers at the Towson Apple store voted to join the International Association of Machinists union in June 2022 and have since been negotiating their first contract. In May, the workers voted to authorize a strike without setting a deadline, escalating efforts to secure the agreement.
The proposed labour deal, which must be ratified by the store’s 85 union members, represents a significant milestone in labour relations within the tech industry. This achievement stands in contrast to other prominent unionization efforts at companies like Starbucks and Amazon, where workers have yet to secure agreements despite voting to unionize earlier than the Apple store employees in Maryland.
There are few legal mandates compelling companies to finalize labour agreements once a union is recognized by the National Labor Relations Board (NLRB). However, the process is often lengthy; Bloomberg Law reports that it takes an average of 465 days, or roughly 15 months, to reach a first contract. Additionally, a 2023 academic study found that 43% of new unions were still negotiating their first contract two years after winning representation elections.
The Machinists union revealed that the tentative deal includes key improvements in scheduling to enhance work-life balance, a significant concern during negotiations. The agreement also offers a 10% pay increase over the three-year contract term and provides job protections, including guaranteed severance packages for laid-off workers and restrictions on the use of contract employees.
“By reaching a tentative agreement with Apple, we are giving our members a voice in their futures and a strong first step toward further gains,” the union said in a statement. The union plans to leverage this success to organize retail workers at other Apple stores, emphasizing, “Together, we can build on this success in store after store and grow the power [the union] has started here in Maryland.”
Apple operates around 270 retail stores across the United States, all company-owned. So far, only one other store, located in Oklahoma City, has voted to unionize, aligning with the Communications Workers of America union. This store is not included in the current tentative agreement.
An Apple spokesperson declined to comment directly on the tentative agreement but referred to a previous statement: “We deeply value our team members and we’re proud to provide them with industry-leading compensation and exceptional benefits.”
