Employees at Towson Mall Apple Store in Maryland launch union drive

Employees at Apple Towson Town Center in Maryland near Baltimore have started a drive to form a union. On Tuesday, employees said they had signatures from more than 65% of employees who are likely to be eligible to unionize.

Apple Towson Town Center
Apple Towson Town Center


The union intends to file paperwork with the National Labor Relations Board in the coming days, the Washington Post said.

Workers at an Apple store in Atlanta in April filed a petition to hold a union election, seeking to become the company’s first U.S. store to unionize amid a wave of labor activity at other major firms.

Amazon.com Inc workers voted against unionizing a second warehouse in New York City, a ballot count on Monday showed, representing a defeat for labor organizers who just weeks ago secured their first U.S. win at the retailing giant.

Once again, we’ll reiterate that jobs are valued by supply and demand.

The skillset for a retail employee is different than that for, say, a software engineer. Potential retail employees are an order of magnitude more plentiful than software engineers and the wages paid for each job reflect that discrepancy.

You’re not going to get rich working in retail. There are simply too many other people capable of doing your job. Nobody likes to hear that their job is a dime a dozen. Regardless, retail jobs are a dime a dozen.

If retail workers unionize, they can, and do, force abnormal wages and benefits that do not reflect the reality of supply and demand for such positions.

What happens next (besides backroom graft and corruption between union bosses and politicians)?

The corporation is forced to overpay unionized staff to do tasks that, in a free and unfettered market, should cost the company far less. Therefore, to maintain margins and profitability (in order to satisfy the company’s shareholders and the market), the company is forced to either cut back in other areas or raise prices for goods and services. The company cannot “absorb the cost” longterm.

Talk about inflation.

That said, yes, executive compensation is out of whack. Tim Cook is vastly overpaid for what he does. This is because he holds a rare skillset and it benefits the shareholders to have continuity in the CEO position. Basically, Apple overpays Tim Cook in order to have a long-term CEO which provides confidence to the market. A succession of different CEOs jumping from company to company every other year seeking higher salaries would be a negative and justifies Cook’s overpayment. Cook is paid to stay more than for what he actually does. This is why he has vesting targets set years into the future. If he stays, providing continuity, he benefits and so does the company’s stock price.

Not so for retail employees. If one leaves, there’s a line of others to replace them. Sure, there are excellent retail employees and, if Apple’s retail arm is functioning properly, they are being identified and rewarded in order to keep them, as their continued employment benefits the company, the company’s customers, and the company’s shareholders.

If Apple is not functioning properly, unionization is the last resort of employees. Just know that those costs will eventually be passed to the customer. Someone has to pay. There’s no such thing as a free lunch. If those unionization costs are too high (which they tend to become over time), it will hurt the company (consumers will look for similar goods and services offered at significantly lower prices) and the retail workers will eventually feel negative effects from that (see: unions and Detroit’s automotive industry, what’s left of it).

Back in the day, unions corrected many wrongs: unsafe working conditions, forced overtime without pay, child labor, etc. None of these situations are faced by Apple Retail employees today. Some retail staffers simply want higher pay than the actual value of their work in a free market, so they want to band together to force it.

In many union settings, workers face limited advancement based on their merits. Union workers’ avenues for advancement are limited as stipulated by union contracts. So, if you are an exemplary Apple employee today, your prospects are likely brighter than if you were part of a union, subject to certain union rules governing advancement, etc. Retail employees should carefully consider the pitfalls of unionization and the consequences of unintended consequences.

Apple should do all it can, within reason, to satisfy and compensate retail employees. In fact, Apple appears to be doing so. Just this February, Bloomberg News reported that Apple will significantly increase wages and benefits for American retail workers amid a tightening labor market.

Apple adopted the following changes for U.S. workers beginning on April 4th:

• Raises ranging from 2% to 10% depending on store location and role, for salespeople, Genius Bar technical support staff, and some senior hourly workers.

• Doubling paid sick days for both full-time and part-time workers. The days can be used for mental health leave and taking family members to the doctor. This change will give full-time workers 12 paid sick days, instead of six.

• Workers receive more annual vacation days, beginning at three years of employment instead of five.

• Part-time employees will now get as many as six paid vacation days for the first time. Another first: They’ll get paid parental leave. That benefit will cover up to six weeks and will include the ability to gradually ramp up work time for the first four weeks back.

• Part-time workers also will get access to discounted emergency backup care for children or elderly family members.

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  1. Enjoy your employee pay raise while it lasts—

    Subsequent to that enjoy—
    Decreased staffing
    Increased mail order marketing
    Fewer hours at work
    More contract vendors

  2. Retail workers don’t have a wage problem, they have a living within their means problem. Everyone thinks they have a right to $100/month cell phone bills, numerous streaming services, fancy shoes, and ordering Uber eats 3 times a day (instead of learning to cook).

    Live within your means. If you don’t make enough to support your lifestyle, get a better job or adjust your lifestyle.

    1. Yes…few understand embrace delayed gratification…which enables living within one’s means.

      Sacrifice today often limits how one lives today, but it enables living life no one else (better) at a later time.

      1. For all my life…searching far and wide, I’ve wondered…. What is it in the liberal mind that thinks what’s in another’s proverbial back pocket, rightfully belongs in in theirs?

        Strangely and befuddling, it’s truly commonplace and without question. Please point me to the answer…an explanation.

        1. Indeed. Not a single person in America understands the true meaning of poverty. Even the poorest in this country have a roof over their head and food in their stomach.

  3. I’m not a fan of unions in this age. Yes, unions once had their place, but in the vast majority of cases unions are just a financial drain.

    A specific, personal case on point: a little over 40 years ago I worked as a non union worker in a mixed union/non union environment. The union decided they wanted everyone to join. So they declared that they would make life miserable for everyone (and the company) through picketing and other disruptions (other unionized companies with which the main one worked “might” slow down their parts). Thus we all joined the union. I got a 53% raise. Of that all but 3% went to union dues. Yes. I got a 3% raise by joining the union, but the union got virtually all of the raise to go into their coffers. To do what? Absolutely nothing as far as I could tell.

  4. Oh boy…say hello to bands of antifa (the small group that’s not violent and merely protests_txuser) roaming Cupertino and surrounding.

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