Apple and the union representing retail workers at its store in Towson, Maryland, have reached a tentative labor deal, marking the first US labor agreement for an Apple store and for any US workers of the tech giant. The workers at the Towson store had voted to join the International Association of Machinists union in June 2022 and have been seeking their first contract since then. They had previously voted to authorize a strike without providing a deadline.
The labor deal, which is yet to be ratified by a vote of the 85 rank-and-file members at the store, is a significant milestone. Other high-profile union organizing efforts at companies like Starbucks and Amazon have not produced deals for those workers despite voting to join unions before the workers at the Apple store in Maryland. There are no legal requirements to force a company to reach a labor agreement with a new union once recognized by the National Labor Relations Board, but the process can be lengthy.
The Machinists union stated that the Apple store deal includes scheduling improvements for a better work-life balance, pay increases of 10% over the three-year contract, and job protections such as guarantees for severance packages for laid-off workers and limits on contract employees. The union sees this tentative agreement as a step towards further gains for its members and looks to represent retail workers at other stores, building on the success achieved in Maryland.
Apple has around 270 stores in the US, all owned by the company, with only one other store in Oklahoma City voting to unionize and joining a different union. This store is not covered by the tentative labor deal reached in Towson. An Apple spokesperson declined to comment on the agreement, but the company had stated earlier that they value their team members and provide industry-leading compensation and exceptional benefits to them.
The process of reaching a first contract with a new union can be time-consuming, with studies showing an average time of 465 days or roughly 15 months. In some cases, it can take even longer, with 43% of new unions still seeking their first contract two years after winning a representation election. The union’s success at the Apple store in Towson sets a precedent for other retail workers in the tech industry to potentially unionize and seek better working conditions.
By giving their members a voice in their futures and securing improvements in work-life balance and job protections, the Machinists union has set a foundation for further negotiations with Apple and other companies. The union’s efforts could pave the way for greater representation of retail workers in the tech industry and lead to more labor agreements that benefit workers in terms of pay, working conditions, and job security.
