Apple’s unionized Retail Store workers seek tips

Workers at Apple’s unionized retail store in Maryland are asking for higher pay, additional time off, and changes including allowing customers to tip employees.

Apple Retail Store

Mark Gurman for Bloomberg News:

The employees, represented by the International Association of Machinists & Aerospace Workers, are conducting negotiations with Apple on Wednesday and Thursday. Their latest proposal calls for raises of as much as 10%, as well as major changes to the outlet’s vacation policy, bereavement leave and overtime.

The store in Towson was the first Apple retail location in the US to unionize, and other efforts since then haven’t made much headway. Workers at a location in Oklahoma City agreed to unionize, though negotiations with Apple haven’t begun. Efforts in Atlanta and St. Louis were canceled.

In addition to an overall raise, representatives from the store are asking Apple for higher pay over a larger slate of holidays, including the day after Thanksgiving. The union is also seeking to expand vacation pay and available time off based on years of service. And it wants to extend paid bereavement leave from 10 days per occurrence to a maximum of 45 days a year and for the policy to include pets and close friends.

The workers’ negotiators also want Apple to adopt a tipping system, letting patrons offer gratuities in increments of 3%, 5% or a custom amount for in-store credit-card transactions.

MacDailyNews Take: Some people have lost the plot.

As we wrote back in February 2022:

In a free market, 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 and benefits granted 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” longer term.

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 (over time).

Not so for retail employees. If one leaves, there’s an endless 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. But the cost of their employment must make financial sense, regardless of how good an employee is – if it costs more to keep them than they are worth to the company, they should seek employment elsewhere, not force overpayment / continued employment.

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. retail workers beginning on April 4th [2022]:

• 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.

In a [2022] statement to Bloomberg News, an Apple spokesperson reiterated, “We are pleased to offer very strong compensation and benefits for full time and part time employees, including health care, tuition reimbursement, new parental leave, paid family leave, annual stock grants and many other benefits.”

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35 Comments

    1. Fire all these union communist parasites. Actually Apple needs to fire over 3/4s of its employees. They are him cruft. They make Apple worse.

      Elon fired 3/4s of Twitter and produced more new features and enhancements in months than all those loser woke cruft employees could in years.

      FIRE THEM ALL!

      1. Unions were formed for employees who are abused. Again, read a book and grow up a bit. Clearly not the case at this one store site. However, your post is rooting for thousands of people at Apple to lose their jobs for some reason only you seem to understand and cannot intelligently communicate. Really unsettling. Mama knock you off the milk bottle too young?

        1. Mr upside down world speaks more nonsense. How does a twisted mind equate underpaid retail employees with a fascist regime responsible for mass genocide and significant destruction of over 50 countries? Zombies have to consume insane quantities of alcohol and narcotics on top of the usual dosage of Lyin’ Tucker Carlson and even less truthful alt right media.

          Nobody likes this unionist negotiating tactic but a company as rich as Apple shouldn’t have any trouble paying every single employee a living wage. In fact, Cook’s stock bonuses alone would be enough to hire and train the next generation of Apple Geniuses to be significantly more impactful than minimum wage peons in blue T shirts. Smart people can see the difference between negotiation and reality. Zombies can’t see anything even when sober.

    2. Right now I have the best dog I’ve ever had. She’s 12 years old. And, I try to cherish every moment with her. But, I would NEVER expect a company to pay me for 45 days of not working when she passes. Not trying to be insulting. But, that’s ridiculous.

  1. We tip waiting staff in restaurants because they are paid such a low hourly rate. Are these Apple staff willing to take a significant pay cut and make up their earnings to a reasonable rate by means of tips?

    No. Didn’t think so.

    1. Hey Manager Bob, my treasured fish just died. We’ve been together for 3 yrs and w/o they/them, I’m going through some tough times ahead. I’m so glad I can start my 45 day bereavement period, that I’d like to start tomorrow. I hope that’s ok?

  2. This is the closest Apple Store to me. Stopped going when it got unionized. Delaware is a haul but will go there if I need to. I travel to cities with Apple stores and can frequent them instead. Anyone asks me for a tip at an Apple Store when I am checking out, I am walking out, no way, not happening. They pay well, have good benefits, customers seem to treat the employees well, and it looks like a nice climate to work in. Unions should have zero appeal there. Best Buy on the other hand …

    1. So you’re okay with paying shipping & handling to an anonymous minimum wage warehouse worker in China but you’re too cheap to support an OPTIONAL gift to someone for a job well done in your neighborhood. Then go online to a supposed Mac website and whine about how evil tou feel China is. Don’t forget to support your blog host on the way out. It’s not a tip if you pay the anonymous MDN money grubber, really.

  3. The only people I will tip are workers who are not making minimum wage. Restaurants only.

    And you want me to help subsidize your job? Ha ha you are not getting it from me.

    If you want to make more, get a job that pays more. Just bringing me a box from the back room and you want me to tip for that.

    Remember when you went to the Apple Store to need out and have fun. Buy the latest operating system. Etc.
    They are not as fun as they used to be.

    From article.
    “Employees at Apple’s first unionized retail store want tips from customers, 10% raise, and more”

    1. Here are 2 tips for you:

      Uno – If it bothers you when people ask for tips, STOP VISITING THIS WEBSITE. Every page here begs for handouts. Save yourself the aggravation of dealing with beggars.

      Dos – A tip is optional. Don’t tip if you can’t afford it. Or move to Europe where the prices you see are the prices you pay, no shenanigans.

      1. Wow, are you really so stupid that you can’t tell the difference between and employee that is paid well with benefits and a website that offers a free service?

        1. And losers like you can’t stay away… wonder why you troll shill. Oh shill that’s right. Be proud leftist scum shill. That’s what you ultimately are. We see you.

        2. While you’re having your umpteenth coronary, we dined at a fast casual restaurant. The cashier asked if we would round up the bill to donate to a local charity.

          OH MAH GODD!!!!!!!!!!

          Charities want money.
          Businesses want money.
          Workers want money.
          MDN wants money.

          Boycott em all!!!!!
          Don’t spend any precious pesos anywhere!!!!!!
          How dare we let capitalism work, where everyone competes for your tiny little hoard ?!?!?!?!

          Next, let’s all gripe about the price of hot dogs in socially funded baseball stadiums. We paid taxes on the stadium, why don’t they give all the food away for free?????? It’s so unamerican!!!!!

      2. Tip: A website asking for business donations, same as non-profit organizations, to keep the doors open is not the same thing as a dime a dozen retail employee asking for tips. A ridiculous FIRST. Get a grip…

        1. Explain your logic Goeb. Is MDN a nonprofit? Clearly not. This ad festooned site has played host to all kinds of misinformation it claims to be Mac news. If it’s pissed off so many people that it can’t collect its desired income from Amazon and Google clicks. The advice above would say MDN needs to get a different job. You claim it’s somehow different if the boss begs instead of the employees who aren’t making ends meet.

          By the way, the boss sets his own salary and can work harder. The retail employee usually gets the shaft on benefits and hours. You may be promised 35 hours a week but be scheduled for half that, often without forewarning. In expensive cities, this isn’t reasonable.

          Maybe instead of insulting Apple employees, MDN should hire them to turn around its beleaguered business.

        2. “This ad festooned site has played host to all kinds of misinformation it claims to be Mac news.” You did not name “all kinds of misinformation” except to imply the articles are somehow not Mac news related. 🙄🤣

          “You claim it’s somehow different if the boss begs instead of the employees who aren’t making ends meet.”

          Yes, it’s different. What you don’t recognize MDN is a profit business providing a 100% FREE service and not through a paid subscription model. Funded by advertising and public donations — NOT by memberships or selling millions of iPhones. Non-profits routinely have funding drives to pay operating expenses and I would not call that begging by them or MDN.

          As to Apple employees “begging” for tips is UNPRECEDENTED in retail sales. More like typical Union strike tactics for menial work, college training not required. Hence, dime a dozen jobs. Instead of hiding behind a union, retail employees earn it on their own merits, not handouts.

          “By the way, the boss sets his own salary and can work harder. The retail employee usually gets the shaft on benefits and hours.” Based on job qualifications and risk, the boss and retail employees get exactly what they deserve…

        3. Maybe Nazi leftists shills like you should go elsewhere since you dislike it so much but you don’t, why? Oh that’s right shill. You have astr colicky leftist agenda. Don’t worry, we see you. We’ll keep you employed. Keep clicking shill, dance, click shill. Click.

      3. Aaaaaaaand looks like you are whining.
        As usual.

        Where did I whine?
        Of course it’s not there, but I’m YOU could even find racism.

        What a clueless child.

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