Apple has been under pressure over how it will integrete AI into its products
The deal includes scheduling improvements for a better work-life balance, pay increases, and job protections AFP

Apple and the union representing workers at its Towson, MD, retail store have reached a tentative, but groundbreaking agreement, marking the first-ever labor deal the iPhone maker has entered with its employees in the United States.

The Towson store workers, who voted to join the International Association of Machinists (IAM) union in June 2022, have been negotiating for their first contract since then. In May, they authorized a strike, although no deadline was set for the action.

The tentative agreement, which was announced on Friday, must be ratified by a vote of the 85 rank-and-file union members at the Towson store before it can take effect, according to CNN.

If approved, the historic milestone will set a precedent for other high-profile unionization efforts, such as those at Starbucks and Amazon, where workers have yet to secure contracts despite earlier votes to unionize.

The process of reaching a labor agreement can be protracted, with no strict legal requirements compelling companies to finalize a deal swiftly once a union is recognized by the National Labor Relations Board (NLRB).

According to a Bloomberg Law study, the average time to reach a first contract is approximately 465 days, or about 15 months.

The Machinists union has highlighted several major provisions of the Apple store deal, including improvements in scheduling to enhance work-life balance, a 10% pay increase over the three-year duration of the contract, and job protections such as guaranteed severance packages for laid-off workers and restrictions on the use of contract employees.

"By reaching a tentative agreement with Apple, we are giving our members a voice in their futures and a strong first step toward further gains," the union said.

It also expressed its intent to extend union representation to workers at other Apple stores, saying, "Together, we can build on this success in store after store and grow the power the union has started here in Maryland."

Apple operates approximately 270 stores in the United States, all company-owned.

To date, only one other store, located in Oklahoma City, has voted to unionize, aligning with the Communications Workers of America (CWA).

The Oklahoma City store is not covered by the current tentative agreement.

An Apple spokesperson said in a previous statement that the company is committed to employee welfare.

"We deeply value our team members and we're proud to provide them with industry-leading compensation and exceptional benefits," Apple said.

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