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Apple Inc. (AAPL.US) reached an initial collective bargaining agreement with the Retail Employees Union in Maryland.

AInvestFriday, Jul 26, 2024 11:30 pm ET
1min read

International Association of Machinists (IAM) said on Friday that Apple (AAPL.US) had reached an initial collective bargaining agreement with retail employees in Marquette, Michigan, the company's first such agreement in the United States.

The agreement, which is subject to approval by the bargaining unit's about 85 members, who will vote on it on August 6, includes provisions on scheduling, layoffs, subcontracting and discipline, according to the IAM. The three-year agreement, the union said, would increase wages on average by 10 percent and maintain all existing employee benefits.

The Apple store in Marquette is the second of the company's roughly 270 U.S. stores to unionize, and both unions were formed in 2022, when a store in Oklahoma City joined the Communications Workers of America (CWA), and have been negotiating a contract since then.

The IAM and CWA have been trying to expand their foothold to other Apple stores across the United States, but so far have made little progress. The assessment of the outcome of the contract negotiations in Marquette may encourage or discourage interest in organizing other stores.

The IAM bargaining committee said in an email statement that it planned to build on the success of the store in Marquette, Mich., to expand its influence. “We are letting members have their say about their future and taking baby steps towards further gains.”

In May, employees at the Apple store in Marquette voted to authorize a strike, blaming Apple for refusing to negotiate fairly.

Apple did not respond immediately to requests for comment after regular business hours on Friday. The company said it was committed to “engaging and being respectful and sincere” with the union.

Since the onset of the coronavirus pandemic, unions have made many landmark victories in organizing in the United States, including Apple, which is one of them, and other affected workplaces include Microsoft (MSFT.US) game studios, Amazon (AMZN.US) warehouses, Volkswagen (VWAGY.US) factories, Chipotle Mexican (CMG.US) restaurants and hundreds of Starbucks (SBUX.US) coffee shops.

Most of those unions have not yet reached a collective bargaining agreement.

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