Standing firm | Apple urges shareholders to reject anti-DEI proposal, while gender pay lawsuit goes ahead

Apple urges shareholders to reject anti-DEI proposal, while gender pay lawsuit goes ahead

Apple has urged its shareholders to vote against a proposal seeking to eliminate its diversity, equity, and inclusion (DEI) initiatives, as right-wing groups escalate pressure over such policies.

The National Center for Public Policy Research, a right-wing think tank, is set to present the proposal at Apple’s annual shareholder meeting on February 25, arguing that DEI efforts undermine merit-based decision-making.

In a statement filed with the US Securities and Exchange Commission (SEC), however, Apple defended its DEI policies, stating that they align with its commitment to foster an inclusive workforce and comply with all anti-discrimination laws. The tech giant framed the proposal as an inappropriate attempt to dictate internal management decisions.

Corporate pressure on DEI

The proposal comes at a time when several large corporations have scaled back their DEI initiatives in response to political backlash and legal challenges. Companies such as Southwest Airlines and Target have faced lawsuits from conservative legal groups, while Lululemon has seen shareholder disputes linked to perceived DEI-related stock performance issues.

Despite the pressures, Apple has maintained its stance, drawing parallels with Costco, which has also rejected anti-DEI shareholder proposals. Apple reiterated its position as an equal-opportunity employer, emphasizing adherence to non-discrimination policies in hiring, training, and promotions.

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Gender pay lawsuit

Meanwhile, it has been confirmed that the tech giant will also be in a class-action lawsuit alleging systemic pay disparities between male and female employees. The legal battle stems from a 2021 internal survey conducted among Apple staff, which revealed a 6% wage gap between male and female employees in technical roles.

The lawsuit represents approximately 12,000 current and former female employees who claim Apple violated the California Equal Pay Act by under paying women for equivalent work. Apple initially sought to dismiss class-action allegations and suspend several claims, but California Superior Court Judge Ethan P. Schulman ruled against the motions, allowing the case to proceed.

With the lawsuit moving forward, Apple now faces heightened scrutiny over its pay equity commitments on top of pressure over its DEI policies at the upcoming shareholder meeting.

The outcomes of both could influence corporate diversity efforts and legal standards for workplace equity in the tech industry and beyond.

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