24/7 Wall St. Insights

• Apple Inc. (NASDAQ: AAPL) has been in a messy fight with the union representing workers at its retail outlets.
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Apple Inc. (NASDAQ: AAPL) has been in a messy fight with the union representing workers at its retail outlets. Ultimately, it is not just about money. It is about Apple’s image with the public.

Apple workers are represented by the International Association of Machinists and Aerospace Workers and the Coalition of Organized Retail Employees. While it is an odd set of organizations to represent workers at an electronics retail store, it has been effective.

Apple workers at its Towson, Maryland, plant will vote on a tentative deal on August 6. However, this does not guarantee that the disputes will end. Apple’s stock still has a chance to spike higher.

CNBC states, “The tentative three-year agreement includes an average pay raise of 10%, limits on contracted employees and a severance clause, improvement in work-life balance and rules on transparency.” According to Glassdoor, Apple retail workers make $27 an hour.

As with most labor actions, including those against Amazon.com Inc. (NASDAQ: AMZN) and Starbucks Corp. (NASDAQ: SBUX), these can spread to other locations. This makes them harder for executives to manage and more likely to enter the public’s eye.

Apple has a reputation to protect. A battle with some of its workers threatens that.

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