Apple Secures First US Labor Deal

Apple and the union representing workers at its Towson, Maryland store reached a tentative labor agreement late Friday. This marks the first-ever labor deal for any Apple store and for the tech giant’s US employees.

In June 2022, workers at the Towson Apple store voted to join the International Association of Machinists union, seeking their first contract since then. In May, they voted to authorize a strike without setting a deadline.

The proposed labor deal, pending a vote from the store’s 85 union members, is a major milestone. Unlike the ongoing union efforts at Starbucks and Amazon, which have yet to yield contracts, the Apple store in Maryland is set to make significant progress.

US companies are not legally bound to quickly finalize a labor agreement with new unions recognized by the National Labor Relations Board. Reaching a first contract typically takes around 465 days, or 15 months, according to a Bloomberg Law study. Another 2023 study found that 43% of new unions were still negotiating their first contracts two years after winning representation elections.

The Machinists union reported that the Apple store agreement includes better scheduling for improved work-life balance, a key issue in negotiations. It also promises a 10% pay increase over three years and job protections such as severance guarantees for laid-off workers and limits on contract employees.

In a statement, the union expressed that the agreement gives members a voice in their futures and sets a strong foundation for future gains. The union also aims to represent retail workers at other stores, stating, “Together, we can build on this success in store after store and grow the power we have started here in Maryland.”

Apple operates about 270 stores in the US, all owned by the company. Only one other store, in Oklahoma City, has voted to unionize, aligning with the Communications Workers of America, but it is not covered by this tentative deal.

An Apple spokesperson, referring to an earlier statement, emphasized the company’s commitment to its employees, stating, “We deeply value our team members and we’re proud to provide them with industry-leading compensation and exceptional benefits.”