More than half of workers face layoffs as Apple closes first unionised US store

Apple has closed its first unionised retail store in the United States, a move that will leave more than half of the location's roughly 70 unionised employees without jobs this week and has reignited debate over labour relations at one of the world's biggest technology companies.

The company shut its Towson, Maryland store on Saturday, citing "declining conditions" at the Towson Town Center mall. However, the workers' union has accused Apple of retaliating against employees for organising, an allegation the company has firmly denied.

The developments were first reported by The New York Times.

A landmark store closes four years after union vote

The Towson outlet made history in June 2022, when employees voted to become the first Apple Store in the US to unionise.

Represented by the International Association of Machinists and Aerospace Workers (IAM), workers had cited concerns over workplace safety during the Covid-19 pandemic, alongside broader issues relating to working conditions and changing job responsibilities.

Apple announced the store's closure in April and officially shut the location over the weekend.

The company also closed two non-unionised stores on the same day.

Union questions Apple's approach to transfers

The dispute centres not only on the closure itself but also on how employees have been treated afterwards.

According to filings made by the IAM with the National Labor Relations Board, employees at the two non-union stores were offered opportunities to transfer to nearby Apple locations.

Towson employees, however, were reportedly required to apply for available positions through the standard recruitment process rather than receiving direct transfers.

As a result, more than half of the store's approximately 70 unionised employees are expected to be laid off.

Billy Jarboe, an operations lead at the Towson store and its chief union steward, told The New York Times he was "in the grieving and mourning phase now."

Apple rejects retaliation allegations

Apple has strongly denied the union's accusations.

In a statement cited by The New York Times, the company said it was acting in accordance with the collective bargaining agreement negotiated with the union in 2024.

According to Apple, the agreement does not automatically guarantee employees transfers to nearby stores when a location closes. Instead, affected employees are entitled to receive up to 12 weeks of severance pay.

The company acknowledged that workers at the two other recently closed non-union stores were offered transfers but maintained it would "continue to abide by the agreement that was negotiated and agreed with the union."

Apple also pointed to broader changes at Towson Town Center, noting that several major retailers have closed stores at the shopping centre in recent years.

Labour experts say the case could have wider implications

Labour experts interviewed by The New York Times suggested the closure could have implications beyond a single retail location.

Wilma Liebman, former chair of the National Labor Relations Board under former US President Barack Obama, noted that companies are legally permitted to close unionised facilities for legitimate economic reasons.

However, she also said employers cannot legally close locations to discourage union activity elsewhere.

According to Liebman, proving retaliatory intent can be difficult. She added that differences in how transfer opportunities were handled for union and non-union employees could become relevant if the dispute proceeds through labour authorities.

A contract delivered gains, but uncertainty remains

Apple and the Towson union reached their first collective bargaining agreement in 2024, marking a milestone in the company's US labour relations.

The agreement provided:

• Wage increases of roughly 10% over three years for a typical employee
• A cap on temporary workers
• Additional workplace protections not previously available at non-union stores
• Up to 12 weeks of severance pay in the event of a store closure

Many employees had viewed the agreement as evidence that workers could organise without jeopardising their careers.

The latest developments have raised fresh questions about how future union campaigns at Apple could unfold.

Employees still searching for new roles

According to The New York Times, several former Towson employees have applied for positions at nearby Apple stores but have yet to secure new roles.

Eric Brown, a sales lead and union steward at the store, told the newspaper nearby locations continued hiring seasonal employees despite applications from displaced Towson workers.

Apple operates nearly 300 retail stores across the United States. Besides Towson, only one other US Apple Store, in Oklahoma City, has successfully unionised.

The closure of the Towson store is likely to remain closely watched by labour groups, employers and regulators alike. As the dispute unfolds, it may influence future conversations around unionisation, employee mobility and labour relations across the retail and technology sectors.

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