One thing is certain this Labor Day: Organized labor is on the move.
The United Auto Workers union is being aggressive in contract discussions with the Big 3 automakers, and writers and actresses are striking in Hollywood. Unions have already achieved several significant victories this year, like at UPS, and they are still on the hunt for more.
And organized labor feels as though the tide is now in their favor. Workers now have more bargaining leverage thanks to a tight labor market, strong public support for unions, and the Biden administration’s support.
But there are substantial barriers. Many firms fiercely oppose unionization initiatives, and the future of the economy remains quite uncertain.
The following four facts concerning the work market on work Day are important to be aware of.
Unions are exercising their power
When, if not now?
At unions, this is the prevailing viewpoint. Businesses have made significant profits during the pandemic, and amid a robust labor market, companies have struggled to recruit enough workers.
Additionally, unions currently have a lot of public backing. For instance, autoworkers cite a Gallup poll indicating that 75% of people favor the UAW in its contract negotiations with the major automakers.
Additionally, the current White House administration is supportive of unions. Last week, Vice President Kamala Harris voiced her support for organized labor, stating that unions “make our middle class & our entire economy more strong.”
According to a report released by the Treasury Department last week, unionized workers make between 10% and 15% more than non-unionized workers. Additionally, they benefit from superior benefits, whereas racial and gender pay discrepancies are typically lower in unionized workplaces.
And recently, organized labor has achieved some significant successes.
The Teamsters union claims that UPS drivers have reached “the highest-paying agreement” in the history of the delivery service, while unionized pilots at American Airlines have seen wage increases of more than 40% in their new contract.
Acting Labor Secretary Julie Su stated in an interview that there have been instances in which companies have sat down, bargained, and reached agreements. “I believe that is fueling what has been referred to as a hot labor summer,” the speaker said.
However, uncertainty still lies ahead
The best thing that workers have going for them is a robust job market, but it’s unclear how long that will endure.
The longest such period in decades has seen the unemployment rate below 4% for 19 successive months. In particular, for people at the bottom of the income scale, pay growth is being driven by competition for workers.
As opposed to the average of 312,000 jobs added over the first 3 months of the year, employers added 187,000 jobs in August, signaling a slowdown in job creation.
Since last year, the Federal Reserve has aggressively increased interest rates in an effort to combat inflation, and the effects of those higher loan rates are still being felt by the whole economy.
Attempts to unionize have not always been successful
Despite rising unionization efforts, the outcomes have been inconsistent.
According to the National Labor Relations Board, last year saw the largest number of petitions for union elections in seven years with over 2,500 workers requesting them.
But less than half of those elections resulted in a victory for the union, and even fewer eventually led to a CBA.
Consider Starbucks. The coffee chain’s unionization attempts first started two years ago. Since then, more than 300 stores have joined the union, but no one has yet secured a new contract.
As a result, a new organization at Starbucks is slowing down since baristas don’t believe their efforts have yielded many benefits.
Starbucks has also made a strong effort to discourage people from joining unions. Stores have closed and baristas have been sacked. Starbucks has received multiple citations from federal labor regulators, but the coffee corporation still maintains that nothing was wrong.
Even if corporation anti-union acts are found to be illegal, the penalties are frequently insignificant and don’t work as a deterrent.
The amount of assistance the White House can offer is also limited. For example, the administration has taken action to increase union involvement in public works projects. The PRO Act, that would make it simpler for employees in the private sector to organize and more difficult for businesses to retaliate, is the unions’ top objective, but it hasn’t made any progress.
Ahead are major battles
The so-called “hot labor summer” has been here, and more significant conflicts are expected in the coming months.
The current writers’ strike in Hollywood, which is demanding higher compensation and job security, has outlasted the previous one in 2007 by more than 100 days.
And in mid-September, the UAW contract with Ford, Stellantis, and General Motors is set to expire. The union that represents auto manufacturers is prepared to go on strike if they don’t get the significant pay and benefit increases they’re asking for.
Due to what these two contests stand for—a struggle for job stability in rapidly changing times—they are receiving disproportionate attention.
With the rising popularity of streaming services, Hollywood is undergoing significant changes, while automakers are investing billions in Detroit to switch to electric automobiles, which typically require fewer personnel to assemble.
That makes both sides uncertain. Employees want to have a role in how these two sectors should handle these changes, and concerned companies want to keep as much of their flexibility as possible.
Therefore, even while unions may have won significant victories as of Labor Day this year, there are still a ton of conflicts to be fought.