Technology giant the Apple company AAPL is facing negative headlines regarding a US Department of Justice case.
Apple and its shares may now come under pressure as shareholders grapple with what increased unionization of the company’s retail stores could mean.
What happened: Apple has recent history with unionizing two retail stores in Oklahoma and Maryland, which successfully unionized.
The company is now seeing a new push from a fifth store to petition for unionization in what could be the third store to succeed.
The company’s retail store in Short Hills, New Jersey, which is located in a mall, is the latest Apple retail store to petition to organize, according to a Bloomberg report.
The store, which has 104 employees, saw a filing with the National Labor Relations Board on Monday. According to the report, the staff is represented by the Communications Workers of America.
“We firmly believe that forming a union is the best way to ensure that all Apple workers receive the respect, pay, benefits and working conditions we deserve,” John the Great who is a member of the New Jersey History Organizing Committee.
Nagy said Apple responded to union organizing by violating the rights of workers across the country in retail stores.
“We hope Apple executives recognize the opportunity to stay ahead by taking a different approach.”
Nagy added that the group is asking Apple to “not interfere” in the efforts and to allow workers to decide whether or not to form a union.
“We have always paid our retail teams at the highest end of the market,” Apple said in a statement, shared by Bloomberg. “And we provide exceptional, comprehensive benefits to all full-time and part-time employees.”
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Because it is important: The Towson, Maryland, and Oklahoma City, Oklahoma stores are the only two Apple stores in the United States to have successfully unionized. Stores in Atlanta, Georgia, and St. Louis, Missouri, have already filed petitions to unionize.
Towson was the first Apple store to unionize in June 2022. According to the report, workers in Towson and Oklahoma City have been unable to reach a collective bargaining agreement with Apple since joining the union.
Apple held meetings with retail workers in 2023 in an effort that was seen by employees as a push to counter unionization efforts.
The petition filed by the New Jersey store could revive the efforts of numerous Apple stores across the country.
While unions can be good for employees, they can raise questions for shareholders of public companies, with the potential for higher wages and benefits for employees and rising costs for companies.
Companies like it Starbucks Corp SEX AND Amazon.com Inc AMZN They are among the U.S. companies that have seen individual locations across the country push to form unions to demand better wages and compensation.
AAPL Price Action: Apple shares closed 1.11% lower at $167.78 on Wednesday compared to a 52-week trading range of $159.78 to $199.62.
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