Business

The pros and cons of labor unions

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The union membership rate in the United States was just 10% in 2023, according to the Bureau of Labor's latest statistics. Despite this, there is still a strong push for companies to unionize, and union issues have become a key part of the 2024 election cycle. But while many people advocate for unions, others have pointed out their shortfalls.

Pro: Better working conditions

Unions can "promote economic equality and build worker power, helping workers to win increases in pay, better benefits, and safer working conditions," said the Economic Policy Institute (EPI). Pushes by unions for higher wages seem to be working, as the 17 states with the highest union densities "have state minimum wages that are on average 19% higher than the national average." There is also an "improved access to benefits, particularly for women and Black workers," said the Center For American Progress (CAP). When wages increase among union workers, these pay raises can often "spill over to nonunion workers." This is perhaps the most obvious drawback of unions: they're not free. Unions "charge dues to pay the salaries of union leaders and workers during a strike," said Maryville University, and "some unions spend union dues on six-figure salaries for leaders and luxurious headquarters." Critics say this is "unfair to people who might have practical or ideological objections to the union and don't want to comply with requirements to pay dues or fees," according to SmartAsset. Unions can boost productivity by "allowing workers to engage in decision-making in workplaces," and they "may also improve business outcomes by helping firms hold on to tenured workers who tend to be more productive," said WorkRise. Unionized workers are also "less likely to express intent to leave their jobs." Unions "have a positive effect on productivity through employee engagement and union voice effects, providing a road map for the type of union campaigns that could lead to additional growth," said the U.S. Treasury Department. Union membership often comes with a rise in rules, and this may not always benefit workers. Union employees "enjoy less autonomy and must abide by union rules," said Laborsoft. These rules "may favor seniority, slowing advancement and making newer employees more likely to get laid off." Beyond this, unions may cause angst among workers based on the choices union leadership makes, because "unionized employees are bound to union decisions even when they disagree," said Laborsoft. Unions "have long played an important role in improving the health and well-being of workers, and unionized construction sites and coal mines have been found to be safer than ones where there is no union," said The American Prospect. Collective-bargaining agreements "often require employers to provide safety and health precautions far stronger than OSHA's standards." When it comes to safety, some companies "follow the law only when they have to — and they have to when unions are watching," said The American Prospect. It seems that striking unions are a constant source of news headlines, and data supports this. The "number of workers involved in major work stoppages increased by 280% in 2023," said the EPI. Nearly 350 strikes occurred that year, the most in two decades. These strikes "included workers across the country — from auto workers to Hollywood writers and actors, nurses, and public school teachers," said the EPI. Many strikes have continued throughout 2024.