After years of declining membership and tepid contract results, American unions finally hit their stride.
In November 2023, after a six-week strike, the UAW, now under the leadership of its new president, Shawn Fein, nailed down historic wage increases of more than 25 percent and other gains.
Other unions in the healthcare, entertainment and transportation sectors have used this more hard-nosed strategy and almost 400 strikes were called in 2023.
The UAW has vowed to organize Tesla and foreign auto makers in the south, and already is talking about the forces it will bring to bear in the coming round of contract negotiations.
What Employers Should Take from Current Union Success
Unions are also becoming more popular. A recent poll found two-thirds of Americans support unions. Astonishingly, 88% of those thirty and younger had a favorable view of unions. During the November strike public opinion was also on the side of the unions — one poll indicated all but 9% favored the UAW over the automakers.
What does that really mean for employers? First, with only 10% of the national workforce currently members of unions, this potent combination of an aggressive approach, results, and popularity is likely to mean more organizing campaigns and a higher success rate for unions.
Organizing risk is high in either union-dominated industry or regional markets where union presence is highly marked. On the other hand, even traditionally safe areas can’t preclude such an effort. The key to remaining union-free is for an employer to focus on a number of strategies:
Competitive Economic Package: A competitive economic package in the form of wages and benefits would reduce most of the reasons for seeking union representation. Most non-union auto firms have been offering substantially large raises in wages to stay competitive in this regard. Positive Work Environment: Ensuring that the work environment is positive, with fair treatment, open communication, opportunities for promotion, etc., the employees would be contented and would not seek unionization.
Awareness of Organizing Activities: An employer must always be aware and watchful for any possible organizing activities within their workforce. For that, communication with the employees should be regular, work dynamics should always be observed, and queries or grievances addressed promptly.
Effective Communication: Clearly communicate the position of the company to the employees on unionization. Clearly explain the benefits of remaining union-free, address any misinformation, or other concerns of employees regarding the same.
Investment in Resources: Of course, this would involve investing enough resources in providing legal support and management training to fight off any organizing drives that might develop. Employers need to be prepared and equipped to deal with the labor relations issues tactfully.
Organized Workforce
When a workforce becomes organized, the character of the labor relations can change dramatically. With organized labor, the unions normally try to serve the interest of their constituency through the process of collective bargaining, which generally asks for increased wages, better benefits, and improved working conditions.
If a majority of union members reject negotiated contracts, it may suggest that they are not satisfied, or at least that more substantial concessions could have been granted. This puts pressure on the union leadership to do more and the employers to concede to increased demands.
Especially with lower-margin industries, such as the automotive suppliers mentioned above, it will be very difficult to meet aggressive bargaining demands. Obviously, the threat of a strike or other labor action complicates the situation further, as production disruptions can prove extremely expensive.
In these instances, the employer needs to remain extremely sensitive to their relative bargaining positions.
This consideration involves how feasible it would be to accede to union demands from a financial point of view, along with any other repercussions that could result from an inability to reach terms mutually satisfactory to both parties. Indeed, difficult decisions may lie ahead, requiring strategic thinking and possibly creative solutions to navigate the negotiations successfully.
