Shareholders filed a proposal calling on the company to conduct an independent assessment of workers’ rights.
Apple’s reported interference with unionization efforts stands in sharp contrast to its own human rights policy and to competitor Microsoft’s adoption of neutral policies that foster an environment conducive to freedom of association.
New York City Comptroller Brad Lander, on behalf of the five New York City Retirement Systems, announced today that the New York City Pension Funds have filed a shareholder proposal along with Parnassus Investments, Service Employees International Union Master Trust Pension Plan, SOC Investment Group and Trillium ESG Global Equity Fund, calling on the Apple Inc. (AAPL) Board of Directors to commission an independent, third-party assessment of Apple’s adherence to its stated commitment to workers’ freedom of association and collective bargaining rights. The New York City Retirement Systems own 24.6 million Apple shares, valued at $3.4 billion as of June 30, 2022.
Apple has a stated commitment to workers’ freedom of association and collective bargaining rights through its commitments to international human rights standards within its Human Rights Policy. Additionally, in Apple’s Supplier Code of Conduct, the company states, “Supplier[s] shall freely allow Workers’ lawful rights to associate with others, form and join (or refrain from joining) organizations of their choice, and bargain collectively, without interference, discrimination, retaliation, or harassment.”
Today’s announcement comes ahead of Apple’s annual flagship September event, which convenes industry professionals and media for a first look of the newest Apple products, including iPhone and Apple Watch models. This event is one of the most closely watched events in the technology industry.
This year’s annual Apple event comes on the heels of several unsettling reports of unfair labor practices filed on behalf of workers with the National Labor Relations Board (NLRB). As of August 25, 2022, the NLRB was investigating 14 charges of unfair labor practices involving Apple.
Apple employees have commenced efforts to unionize in stores across the nation. However, there have been numerous reports of Apple attempting to interfere with those efforts. The proposal also requests that Apple’s board lay out clear steps to remedy any practices inconsistent with Apple’s stated commitments.
“Shareholders are increasingly concerned that Apple’s actions with respect to its workers’ rights do not match up with the company’s stated commitment to respect freedom of association. The reports of Apple’s consistent interference with the ability of workers to exercise their fundamental rights to unionize are deeply troubling. As investors with more than $3 billion invested in Apple, the NYC pension funds expect management to ensure that the company adheres to its commitments to workers’ freedom of association and collective bargaining rights. I urge Apple’s board to take swift action and address the issues we have laid out in our proposal,” said Comptroller Brad Lander.
“Respecting workers’ rights is an essential obligation of every employer,” said Department of Finance Commissioner Preston Niblack, Chair of the New York City Employees’ Retirement System Board. “Apple’s board should lay out clear steps to remedy all practices inconsistent with its stated commitments to collective bargaining rights for its employees.”
“If big corporations won’t look out for their employee’s best interests, then the people will,” said Brooklyn Borough President Antonio Reynoso. “I stand with Comptroller Lander and this coalition of investors to have an independent assessment of workers’ rights done to ensure no interference with unionization efforts. Apple has boasted about its commitment to international human rights standards and must hold themselves to that standard. Protecting our workers and their interest should be a priority for any company, especially one that employs as many people as Apple does.”
“Approval of unions has reached its highest point in nearly 60 years, and workers across the country are unionizing at incredible rates – it’s long past time that companies like Apple end their antiquated union-busting tactics,” said Manhattan Borough President Mark Levine. “It is both hypocritical and unethical for our nation’s richest company to have a Human Rights Policy that commits to supporting workers’ freedom of association but then interferes in union activities. I urge Apple to set the standard and commission an independent assessment of workers’ rights and demonstrate that fair labor practices are fundamental to Apple’s business model.”
“As a NYCERS Trustee and union president, I am calling upon Apple to honor its public commitment to workers’ rights. Make those commitments more than politically correct sound bites. Make them real! Recent surveys have shown that today, there is a resurgence of union membership. Apple should not stand in the way of union organizing efforts but instead, embrace them and become a force of progress not regression. Both workers and the general public recognize that an organized labor force is mutually beneficial. Better products and services are delivered by employees who feel treated with dignity and respect. Apple should understand that with union workers, ultimately, everyone profits,” said Gregory Floyd, President of Teamsters Local 237 and New York City Employees’ Retirement System Trustee.
“Apple employees should have the freedom to join unions without anti-union pressure tactics from management – something that has been called into question during the last year,” said David Huerta, President of SEIU-USWW and Taft Hartley pension fund trustee. “Being labeled ‘anti-union’ poses financial risk. That’s why our resolution seeks to examine whether the company is acting contrary to its stated goals.”
“As shareholders, we are concerned that the apparent misalignment between Apple’s public commitments to workers’ freedom of association, versus workers’ reports of intimidation and interference in the face of union organizing, represents meaningful reputational, legal, and operational risks, and may negatively impact the company’s long-term value,” said Dieter Waizenegger, executive director of SOC Investment Group. “Greater transparency on these issues could help address concerns about Apple’s reputation and enable investors to assess its adherence to its human rights commitments and commitment to due diligence.”
“Apple’s Human Rights Policy contains a commitment to not interfere in worker rights to organize and collectively bargain. In light of over a dozen charges of unfair labor practices, we believe Apple needs to assess its adherence to that commitment and whether it is living up to its commitment to non-interference,” said Trillium Asset Management, LLC’s Chief Advocacy Officer Jonas D. Kron. “As recently reviewed in a Trillium whitepaper, there is strong evidence that respecting worker rights is good for investors, employers, and workers. But, beyond that, respect for human rights such as labor rights is the right thing to do.”
“At Parnassus, we believe that companies that respect their workers are better poised to deliver long-term sustainable shareholder value. As such, we are dismayed by Apple’s alleged interference in workers’ rights to freely associate and collectively bargain. Failing to respect workers’ rights may harm Apple’s reputation with consumers and hurt its ability to attract and retain a high-performing workforce – key tenets of Apple’s success,” said Marian Macindoe, Head of ESG Stewardship at Parnassus Investments. “We believe an independent assessment would provide assurance to Apple’s Board, management, and investors that the company is committed to its own policies and to high standards of ethical conduct.”
To read the proposal in full, click here.
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