Apple Makes Its Very First Labor Agreement With a Union

"Apple and the union representing retail workers at its store in Towson, Maryland, agreed to a tentative labor deal late Friday," reports CNN, "in the first US labor agreement not only for an Apple store but for any US workers of the tech giant."Workers at the Apple store in Towson had voted to join the International Association of Machinists union in June 2022 and have since been seeking their first contract. In May, they voted to authorize a strike without providing a deadline. The labor deal, which needs to be ratified by a vote of the 85 rank-and-file members at the store before it can take effect, is a significant milestone. Other high-profile union organizing efforts, such as those at Starbucks and Amazon, have yet to produce deals for those workers, even though workers at those companies voted to join unions well before the workers at the Apple store in Maryland. There are not many legal requirements to force a company to reach a labor agreement with a new union once that union has been recognized by the National Labor Relations Board, the government body that oversees labor relations for most US business. But the process can take a long time, as one recent study by Bloomberg Law found the average time for reaching a first contract is 465 days, or roughly 15 months. In many cases, it can take longer. A separate 2023 academic study found 43% of new unions were still seeking their first contract two years after winning a representation election. The union said their deal includes pay increases of 10% over the three-year life of the contract and guaranteed severance packages for laid-off workers.

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