Maryland: Apple closes first unionized US store
The Towson Town Center store was the first in the US to have union representation. Now it's closing – according to Apple for economic reasons.
Apple Towson Town Center in Maryland: Closing soon – allegedly due to crisis in the mall.
(Image: Apple)
Apple is ceasing operations in what is arguably the most well-known store of the company among American labor activists in the coming months: By June, the Towson Town Center Store in Maryland, located in a suburb of Baltimore, is set to open for the last time. The store is one of three US retail locations the company is closing for economic reasons. It was a “difficult decision,” according to a statement. Interestingly, while employees of the affected stores in Trumbull, Connecticut, and Escondido, California, are being transferred to other nearby stores, the staff from Towson can only apply for open positions. This is in accordance with the negotiated collective bargaining agreement, the company stated.
Decline of Shopping Malls in the U.S.
The Towson store was the first Apple Store in the USA where unionization was successful, something Apple itself fought against for a long time. In 2022, an employee vote decided that the International Association of Machinists and Aerospace Workers' Coalition of Organized Retail Employees, IAM CORE for short, would become the in-house union at the store. By 2024, a collective bargaining agreement was successfully negotiated and concluded. IAM CORE had hoped this would serve as a model for other Apple stores.
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According to Apple, the three stores are being closed because the respective environments have deteriorated. There has been the departure of several retailers and “deteriorating conditions” in the shopping centers where they are located. In fact, there has been a so-called mall death in the USA for many years, similar to what is seen in Europe. Key “anchor stores” leave a shopping center, which in turn leads to a decline in customer numbers.
Trade union: “outraged”
However, IAM Core sees other reasons for the decision to close the Towson Town Center specifically. They are currently investigating “all legal options” and are “outraged” by Apple's decision, according to a statement. The store was “critical” for its surroundings and easily accessible by public transport. The union also does not understand why the collective bargaining agreement prevents the transfer of employees.
Apple told Macrumors that the collective bargaining agreement stipulates that employees will be transferred to another store or rehired if Apple opens a new store within an 80-kilometer radius. However, there is currently no such store. Apple also has no corresponding plans. Should this change within 18 months, the terminated employees must be offered employment first. Otherwise, they are entitled to severance pay.
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