The National Labor Relations Board (NLRB) has taken a surprising turn, freezing two cases against Apple Inc. This move comes just days after President Donald Trump nominated Crystal Carey, an attorney representing Apple, as the agency’s general counsel. Carey, a partner at Morgan Lewis & Bockius – a firm known for representing management in labor disputes – was involved in the defense of Apple in both of the frozen cases.
The postponed cases involve Janneke Parrish and Cher Scarlett, key figures in the 2021 ‘AppleToo’ movement. This movement highlighted employee concerns regarding wage discrimination and harassment. Both women filed complaints with the NLRB after leaving Apple, alleging their dismissal was a direct result of their labor organizing activities. The NLRB has yet to comment publicly on the matter.
This development adds another layer of complexity to Apple’s current landscape. The company is already facing challenges in China, a crucial market for its products. While February saw promising growth in foreign-branded smartphone shipments, with a 9% year-over-year increase according to Goldman Sachs analyst Michael Ng, the overall market remains volatile. Ng, who maintains a Buy rating on Apple, holds a $294 price target, reflecting a degree of optimism despite current headwinds.
Adding to the uncertainty is the looming threat of Trump’s “Liberation Day” tariff announcements. Wedbush Securities analyst Dan Ives has cautioned that potential Chinese retaliation could significantly disrupt tech supply chains, particularly affecting companies like Apple that rely heavily on Asian manufacturing. This makes the timing of the NLRB’s decision even more intriguing.
Apple maintains its innocence, stating that it has always respected its employees’ rights. However, the freezing of these cases raises questions about potential conflicts of interest and the future of labor relations within the tech giant. Apple’s stock currently shows a negative short- and medium-term price trend, despite strong momentum and a relatively weak valuation according to Benzinga Edge Stock Ranking. The situation will undoubtedly continue to be closely monitored by investors and labor advocates alike.
