Thursday, November 3, 2022 10:03 amThursday, November 3, 202219 Comments

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Apple last month withheld its latest employee benefits and perks from staff who work at its sole unionized retail store in the Baltimore suburb of Towson, Maryland. Now, Apple’s sole unionized retail store in Maryland is filing a complaint with the National Labor Relations Board over the exclusion.

Mark Gurman and Robert Iafolla for Bloomberg News:

In October, Apple announced a suite of perks for retail and corporate employees in the US, including new medical benefits, prepaying for a portion of tuition for outside education, and free access to a premium Coursera Inc. subscription.

But it withheld the benefits from the store in Towson, a suburb of Baltimore, indicating that the new perks would have to be negotiated as part of a collective bargaining agreement. That move drew Wednesday’s complaint, which was filed by the International Association of Machinists and Aerospace Workers, the labor group representing the store.

MacDailyNews Take: The dude trying to upsell you from AirPods to AirPods Pro is neither a machinist nor an aerospace worker, but that’s beside the point. The point is that, after being sold a bill of goods, they made their bed in Towson, but they don’t want to lie in it.

Tough. The unionized Towson store needs to negotiate benefits with Apple via the collective bargaining arrangement that comes with a union.

For every action there is a reaction. Clear consequences tend to focus the mind. – MacDailyNews, October 12, 2022

Again, Apple retail workers are already, and have long been, among the highest paid retail workers around the world. If ultimately bound under a union contract, and the smart employees should hope that never happens, it will get more difficult to work at an Apple retail store, not easier.

If talking sense doesn’t work, Apple should consider more drastic measures.

An employer is free to simply close its operations at any time, even when facing unionization efforts. Apple could then develop and open new retail stores in the same cities with new staff.

The company closed every store in an entire country (Russia) and still posted all-time quarterly results; it could easily absorb this handful of store closures with subsequent relocations/restaffing to drive home the point that:

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. — MacDailyNews, May 25, 2022

See also:
• Apple to improve scheduling flexibility for retail workers – June 2, 2022
• Apple boosts starting pay for U.S. retail workers to $22 per hour – May 26, 2022
• Apple retail chief O’Brien pushes back against unions in new video to retail staff – May 25, 2022

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