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    Apple Reaches Deal With Investors to Audit Its Labor Practices

    The tech giant will assess its compliance with its official human rights policy, according to a federal filing.Apple will conduct an assessment of its U.S. labor practices under an agreement with a coalition of investors that includes five New York City pension funds.The assessment will focus on whether Apple is complying with its official human rights policy as it relates to “workers’ freedom of association and collective bargaining rights in the United States,” the company said in a filing last week with the Securities and Exchange Commission.The audit comes amid complaints by federal regulators and employees that the company has repeatedly violated workers’ labor rights as they have sought to unionize over the past year. Apple has denied the accusations.“There’s a big apparent gap between Apple’s stated human rights policies regarding worker organizing, and its practices,” said Brad Lander, the New York City comptroller, who helped initiate the discussion with Apple on behalf of the city’s public worker pension funds.As part of its agreement with the coalition of investors, which also includes other pension funds for unionized workers, Apple agreed to hire a third-party firm to conduct the assessment, the coalition said in a letter to the company’s chairman on Tuesday.Labor Organizing and Union DrivesN.Y.C. Nurses’ Strike: Nurses at Montefiore Medical Center in the Bronx and Mount Sinai in Manhattan ended a three-day strike after the hospitals agreed to add staffing and improve working conditions.Amazon: A federal labor official rejected the company’s attempt to overturn a union victory at a warehouse on Staten Island, removing a key obstacle to contract negotiations between the union and the company.A Union Win: Organized labor claimed a big victory on Jan. 3, gaining a foothold among about 300 employees at a video game maker owned by Microsoft.Electric Vehicles: In a milestone for the sector, employees at an E.V. battery plant in Ohio voted to join the United Automobile Workers union, citing pay and safety issues as key reasons.The letter also laid out recommendations for the assessment, which include hiring a firm that has expertise in labor rights and that does not advise companies on how to avoid unionization. It recommended that the firm be “as independent as practicable.”Apple’s federal filing did not refer explicitly to a third party, and the company declined to comment further.Members of the investor coalition controlled about $7 billion worth of Apple stock as of last week, out of a market capitalization of more than $2 trillion. In its financial filing announcing the assessment, Apple offered few details, saying that it would conduct the assessment by the end of the year and that it would publish a report related to the assessment.Last year, workers voted to unionize at two Apple stores — in Townson, Md., and Oklahoma City — and workers at two other stores filed petitions to hold union election before withdrawing them.Many workers involved in union organizing at the company said they enjoyed their jobs and praised their employer, citing benefits like health care and stock grants and the satisfaction of working with Apple products. But they said they hoped that unionizing would help them win better pay, more input into scheduling and more transparency when it comes to obtaining job assignments and promotions.In May, Apple announced that it was raising its minimum hourly starting wage to $22 from $20, a step that some workers interpreted as an effort to undermine their organizing campaigns.Workers have also filed charges accusing Apple of labor law violations in at least six stores, including charges that the company illegally monitored them, prohibited union fliers in a break room, interrogated them about their organizing, threatened them for organizing and that it stated that unionizing would be futile.The Communications Workers of America, the union representing Apple workers in Oklahoma City, has also filed a charge accusing Apple of setting up an illegal company union at a store in Columbus, Ohio — one created and controlled by management with the aim of stifling support for an independent union.The National Labor Relations Board has issued formal complaints in two of the cases, involving stores in Atlanta and New York.Apple has said that “we strongly disagree” with the claims brought before the labor board and that it looks forward to defending itself. The company has emphasized that “regular, open, honest, and direct communication with our team members is a key part of Apple’s collaborative culture.”The investor coalition that pushed for the labor assessment argues that Apple’s response to the union campaigns is at odds with its human rights policy because that policy commits it to respect the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, which includes “freedom of association and the effective recognition of the right to collective bargaining.”Mr. Lander, the New York comptroller, said that the coalition initially reached out to Apple’s board last spring to discuss the company’s posture toward the union organizing, but that it did not get a substantive response.The coalition then filed a shareholder proposal in September urging Apple to hire an outside firm to assess whether the company was following through on its stated commitment to labor rights. The company responded late last year and the two sides worked out an agreement in return for the coalition withdrawing its proposal, according to Mr. Lander.A coalition of some of the same investors, including the New York pension funds, has filed a similar proposal at Starbucks, where workers have voted to unionize at more than 250 company-owned stores since late 2021. Like Apple, Starbucks has cited its commitment to the International Labor Organization standards like freedom of association and the right to take part in collective bargaining.But Starbucks has consistently opposed its employees’ attempts to unionize, and Starbucks has not engaged with the coalition of investors to work out an agreement. Jonas Kron, chief advocacy officer of Trillium Asset Management, one of the investors pushing proposals at both companies, said he expected the Starbucks proposal to go to a vote of the company’s shareholders. The company declined to comment.The federal labor board has issued a few dozen formal complaints against Starbucks for violations including retaliating against workers involved in organizing and discriminating against unionized workers when introducing new benefits; the company has denied breaking labor laws. More

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    Ifeoma Ozoma Blew the Whistle on Pinterest. Now She Protects Whistle-Blowers.

    Ifeoma Ozoma, who accused Pinterest of discrimination, has become a key figure in helping tech employees disclose, and fight, mistreatment at work.Last month, Gov. Gavin Newsom of California signed a bill to expand protections for people who speak up about discrimination in the workplace.A new website arrived to offer tech workers advice on how to come forward about mistreatment by their employers.And Apple responded to a shareholder proposal that asked it to assess how it used confidentiality agreements in employee harassment and discrimination cases.The disparate developments had one thing — or, rather, a person — in common: Ifeoma Ozoma.Since last year, Ms. Ozoma, 29, a former employee of Pinterest, Facebook and Google, has emerged as a central figure among tech whistle-blowers. The Yale-educated daughter of Nigerian immigrants, she has supported and mentored tech workers who needed help speaking out, pushed for more legal protections for those employees and urged tech companies and their shareholders to change their whistle-blower policies.She helped inspire and pass the new California law, the Silenced No More Act, which prohibits companies from using nondisclosure agreements to squelch workers who speak up against discrimination in any form. Ms. Ozoma also released a website, The Tech Worker Handbook, which provides information on whether and how workers should blow the whistle.“It’s really sad to me that we still have such a lack of accountability within the tech industry that individuals have to do it” by speaking up, Ms. Ozoma said in an interview.Her efforts — which have alienated at least one ally along the way — are increasingly in the spotlight as restive tech employees take more action against their employers. Last month, Frances Haugen, a former Facebook employee, revealed that she had leaked thousands of internal documents about the social network’s harms. (Facebook has since renamed itself Meta.) Apple also recently faced employee unrest, with many workers voicing concerns about verbal abuse, sexual harassment, retaliation and discrimination.Connie Leyva, a California state senator, center, wrote the Silenced No More Act, which was signed into law last month.Chelsea Guglielmino/FilmMagic, via Getty ImagesMs. Ozoma is now focused on directly pushing tech companies to stop using nondisclosure agreements to prevent employees from speaking out about workplace discrimination. She has also met with activists and organizations that want to pass legislation similar to the Silenced No More Act elsewhere. And she is constantly in touch with other activist tech workers, including those who have organized against Google and Apple.Much of Ms. Ozoma’s work stems from experience. In June 2020, she and a colleague, Aerica Shimizu Banks, publicly accused their former employer, the virtual pinboard maker Pinterest, of racism and sexism. Pinterest initially denied the allegations but later apologized for its workplace culture. Its workers staged a walkout, and a former executive sued the company over gender discrimination.“It’s remarkable how Ifeoma has taken some very painful experiences, developed solutions for them and then built a movement around making those solutions a reality,” said John Tye, the founder of Whistleblower Aid, a nonprofit that provides legal support to whistle-blowers. He and Ms. Ozoma recently appeared on a webinar to educate people on whistle-blower rights.Meredith Whittaker, a former Google employee who helped organize a 2018 walkout over the company’s sexual harassment policy, added of Ms. Ozoma: “She has stuck around and worked to help others blow the whistle more safely.”Ms. Ozoma, who grew up in Anchorage and Raleigh, N.C., became an activist after a five-year career in the tech industry. A political science major, she moved to Washington, D.C., in 2015 to join Google in government relations. She then worked at Facebook in Silicon Valley on international policy.In 2018, Pinterest recruited Ms. Ozoma to its public policy team. There, she helped bring Ms. Banks on board. They spearheaded policy decisions including ending the promotion of anti-vaccination information and content related to plantation weddings on Pinterest, Ms. Ozoma said.Yet Ms. Ozoma and Ms. Banks said they faced unequal pay, racist comments and retaliation for raising complaints at Pinterest. They left the company in May 2020. A month later, during the Black Lives Matter protests, Pinterest posted a statement supporting its Black employees.Ms. Ozoma and Ms. Banks said Pinterest’s hypocrisy had pushed them to speak out. On Twitter, they disclosed their experiences as Black women at the company, with Ms. Ozoma declaring that Pinterest’s statement was “a joke.”In a statement, Pinterest said it had taken steps to increase diversity.By speaking out, Ms. Ozoma and Ms. Banks took a risk. That’s because they broke the nondisclosure agreements they had signed with Pinterest when they left the company. California law, which offered only partial protection, didn’t cover people speaking out about racial discrimination.Peter Rukin, their lawyer, said he had an idea: What if state law was expanded to ban nondisclosure agreements from preventing people speaking out on any workplace discrimination? Ms. Ozoma and Ms. Banks soon began working with a California state senator, Connie Leyva, a Democrat, on a bill to do just that. It was introduced in February.“I’m just so proud of these women for coming forward,” Ms. Levya said.Along the way, Ms. Ozoma and Ms. Banks fell out. Ms. Banks said she no longer spoke with Ms. Ozoma because Ms. Ozoma had recruited her to Pinterest without disclosing the discrimination there and then excluded her from working on the Silenced No More Act.“Ifeoma then cut me out of the initiative through gaslighting and bullying,” Ms. Banks said.Ms. Ozoma said she had not cut Ms. Banks out of the organizing. She added that Ms. Banks had “felt left out” because news coverage focused on Ms. Ozoma’s role.Understand the Facebook PapersCard 1 of 6A tech giant in trouble. More