Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Apple Down 4% As Workers Seek To Unionize And Earnings Likely To Miss Target

Published 04/28/2022, 02:39 AM
AAPL
-
AMZN
-
SBUX
-
VZ
-

Apple (NASDAQ:AAPL) has hired anti-union lawyers, which signals that the tech titan is not happy about workers trying to organize.

Apple closed the trading day on Tuesday at $156.80, down by around 4%. A mix of reasons could have attributed to the tech titan’s bad performance, one of which might be the news that Apple employees have shown interest in unionizing—a move that apparently the company is not fond of.

Apple Workers File To Unionize

Apple workers in Atlanta filed a petition with the National Labor Relations Board (NLRB) last week to unionize. Communications Workers of America (CWA), the union representing Apple employees, said Apple as well as other big tech companies have failed to give all employees equal standing and respect.

The Atlanta employees interested in organizing include salespeople, technicians, creatives, and operations specialists. The CWA said the Atlanta store employs more than 100 workers eligible to vote, adding that more than 70% of that tally have already signed cards showing interest in an election.

According to organizers, Apple employees at a New York store also intend to file for an election. The New York employees aim to join Workers United, an affiliate of the Service Employees International Union that has also aided Starbucks (NASDAQ:SBUX) workers in organizing.

While demands vary by store, nearly all employees seek higher pay, increased tuition reimbursement, and larger 401(k) matches, among other goals. More specifically, some New York workers have asked for a minimum wage of $30 per hour with other benefits. Their organizers said:

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

“For pay, we seek a minimum $30 for all workers, built up on a matrix based on role, tenure, and performance. For benefits, we seek more robust changes, like increased tuition reimbursement, faster accrued and more vacation time, and better retirement options, including higher match rates for 401(k) and enrollment into pension plans.”

The move by Apple employees follows similar attempts by workers at other companies, including Amazon (NASDAQ:AMZN), Starbucks, and Verizon Communications (NYSE:VZ), all of which have voted to unionize in recent months.

They generally ask for better pay, benefits, and working conditions, and aim to use unions to put additional pressure on the companies.

Apple Hires Anti-Union Lawyers

After increasing interest in unionizing among Apple stores, the tech titan is now working with anti-union lawyers at Littler Mendelson. While the company has not yet announced its stance on employee organizing, its cooperation with Littler signals that it is not happy with workers organizing for better pay and working conditions.

With a focus on labor and employment law, Littler Mendelson usually handles labor and employment litigation. The law firm currently represents Starbucks in its fight against employee unionizing, and also previously helped McDonald’s in a 2014 case that alleged the company violated labor laws.

Sara Steffens, secretary-treasurer of the CWA, said the fact that Apple went to the “notorious” Littler shows that their management wants to prevent workers from organizing. She said:

“By retaining the notorious union busting firm Littler Mendelson, Apple’s management is showing that they intend to try to prevent their employees from exercising their right to join a union by running the same playbook as other large corporations. The workers at Starbucks, another Littler client, aren’t falling for it and neither will the workers at Apple.”

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Nevertheless, after closing Tuesday down by 3.73%, Apple shares were now once again in the red in pre-market on Wednesday.

According to Yahoo! Finance, Apple shares were down by 0.30% in pre-market. Notably, the company will be pushed further into the spotlight this week when it publishes its earnings report for the first quarter of the year today.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.