What the Growing Union Movement Means for Corporate America
Union membership in the United States is on the rise. Big time. And the growing popularity of organized labor among both workers and the public portends a dramatic—and hopefully constructive—turn in how companies do business. But first, some history is in order.
Although union participation has fallen precipitously from its height of 35 percent of all workers in 1954 to just around 6.5 to 10.3 percent today (estimates vary), strong indications suggest the organized labor movement is enjoying a full-throated resurgence. Fully 58 percent of Americans now say the decades-long decline in union membership has been detrimental to our nation as a whole, according to a Pew Research survey released in early 2022. Also, an even larger fraction (61 percent), believe a lack of unions has harmed working people, again according to the same survey.
Among American workers who currently belong to labor unions, 68 percent say membership is either important or very important to them personally, the latter response given by a full 40 percent in a recent Gallup survey. The top reasons cited for joining a union include “Better pay and benefits” (65 percent), “Employee representation/Employee rights” (57 percent), “Job security,” (42 percent), “Better pension/retirement” (34 percent), and “Improving the work environment” (25 percent).
But while the same Gallup survey reports that most non-union employees still have little or no interest in joining organized labor, 20 percent say they do. And in a national workforce of more than 161 million, we’re looking at a pool of 32 million potential new union members. And that’s a lot. In fact, that’s enough to bring union membership back up to 32 percent, close to its historic highs in the mid-1950s.
So, why are workers suddenly interested in joining unions? To begin with, workforce disruptions caused by COVID-19 lockdowns and the resulting Great Resignation have left many employers scrambling for qualified employees. Even today, there are nearly twice as many job openings as there are people seeking to fill them. This has put workers in a highly advantageous position, and they are starting to stretch their collective muscles.
To this point, in April, workers at Amazon’s distribution facility on Staten Island, New York, voted to unionize, a first for the $400 billion company. Similar collective bargaining efforts are now underway at other Amazon centers nationwide. Meanwhile, Starbucks, America’s leading coffee chain, has seen 100 of its stores go union in just the past year. And just a few weeks ago, the threat of a nationwide rail strike was only averted at the last minute when the Biden White House managed to bring rail transportation company owners and union labor to a compromise agreement on both pay and working conditions.
To anyone who has been paying close attention, the major issues driving today’s workers movements are easily discernible.
They include the following:
Low pay. Since the 1970s, the average paycheck has failed to keep up with the rise in worker productivity or inflation. Unfortunately, the post-COVID inflation surge has only worsened this problem.
Working conditions. In large distribution facilities like those operated by Amazon, working conditions can be brutal, with every movement measured, tracked, and systemized. And all this often occurs without proper heating or air conditioning! Throughout the economy, many workers are also required to work long hours with limited breaks and are often asked to put in (unpaid) overtime.
Job insecurity. The days of the “company man,” someone whose loyalty to the organization is rewarded with lifetime employment and retirement benefits, are long gone. Workers know and accept the fact their positions are tenuous, subject to the whims of rapidly changing market forces and global competition. Many resent that such an arrangement tends to always benefit the employer over the employee.
Work-life balance. If the COVID lockdowns and transition to remote working revealed anything, it’s that there’s more to life than earning a paycheck. Workers are seeking to make their job a part of their lives, not the center of them. They’re looking for flexibility, daycare for their young children, the ability to work from home, paid maternity and paternity leave, and the ability to go to medical appointments during working hours. Perhaps most important of all, as discussed in our previous article, they’re looking for respect.
Moving forward, it doesn’t appear that “worker power” will wane any time soon. Recent trends suggest that employers will be looking to fill positions for some time, and workers will be free to not only pick and choose between job opportunities but will have influence to shape their contract terms. If you run a company with the potential to “go union” and don’t wish to do so, it’s in your best interest to manage everything possible to give your workers the pay and perks they’re demanding before they use collective power to force changes.
For more info on how you can create a company culture and compensation package to forestall the need for collective bargaining, please contact me today at laura@conoversonsulting.com. Time is of the essence.