why were labor unions effectivewhy were labor unions effective

2021. Across the states, unionization is consistently associated with higher levels of economic well-being as measured by the level of a states minimum wage, median annual income, and access to unemployment insurance benefits. Lathrop, Yannet, T. William Lester, and Matthew Wilson. Critics maintain that union contracts make it more difficult for a company to fire unproductive. It is therefore critical that policymakers enact reforms that restore a meaningful right to organize and collectively bargain. Proponents maintain that unions result in better wages, benefits and working conditions for workers. n.d. The Racist Roots of Right to Work. AFSCME. Why Labor Unions Were Successful. We average union density data across 2015 to 2019 for each state to give a more accurate estimate of states typical unionization rates over time. Since relative pay plays an important role in wage setting, minimum wages also have an indirect effect on wages above the minimum, by raising the base of comparison for higher earners (Spriggs and Klein 1994). Authoritative, up-to-date data on the living standards of American workers. ", U.S. Bureau of Labor Statistics. We know that unions promote economic equality and build worker power, helping workers to win increases in pay, better benefits, and safer working conditions. 2020. We average union density data across 2015 to 2019 for each state to give a more accurate estimate of states typical unionization rates over time. To this day, unions continue to mobilize workers to vote. 2017). See Table 1 for more detail about these groupings. This analysis looks at restrictions passed by states from 2011 to 2019. These barriers to voting have disproportionately impacted racial minorities, poor people, and young and old voters, all of whom are less likely to have the accepted voter ID (Brennan Center n.d.). Hertel-Fernandez, Alexander, and Alix Gould-Werth. Brown, Jenny. Unions have played an integral role in coalition campaigns to pass paid sick day and family leave laws at the state and local levels, making paid leave a key policy plank alongside higher wages (Brown 2013; MacGillvary and Jacobs 2018; Salsberg 2018; Thoet 2016). Increased government revenue and decreased government spending. We average union density data across 2015 to 2019 for each state to give a more accurate estimate of states typical unionization rates over time. Economic Policy Institute, February 20, 2020. Put simply, it's an organization of people committed to protecting and improving the interests of its members. What unions do has been studied extensively by economists, and a broad survey of academic studies shows that while unions can sometimes achieve benefits for. Union members have better job safety protections and better paid leave than non-union workers, and are more secure exercising their rights in the workplace. His body has never been found. Report By Asha Banerjee, Margaret Poydock, Celine McNicholas, Ihna Mangundayao, and Ali Sait December 15, 2021. We average union density data across 2015 to 2019 for each state to give a more accurate estimate of states typical unionization rates over time. State of Working America Data Library. 2021. Labor unions have a long history in the United States, and while membership has declined in recent decades, they continue to play a major role in workers' rights. Recently, union-backed ballot initiatives have also met with success in other low- and medium-union-density states such as Kentucky, Missouri, Arkansas, and Oklahoma (Kliff 2020; Levey 2018). The strong relationship between union density and a range of economic, personal well-being, and democratic outcomes is consistent with the idea that unions focus the political power of workers and result in the advancement and defense of policies that benefit the broad interests of workers, their families, and their communities. Are labor unions effective? The labor market refers to the supply of and demand for labor, for which employees provide supply and employers provide demand. High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). Unions are an important channel workers use to secure high-quality health insurance, and when union members gain these benefits, nonunion employers are more likely to offer better compensation, including health care benefits, in order to remain competitive (Mishel 2021). This is a time to push the president, not bow and scrape and thank him for what he has . Low-union-density states are the 17 states with the lowest average union densities from 20152019 (all less than 8%). The first category of well-being we examine is economic well-being, broadly defined as working people having the means to support themselves. Longshore Union Protesters Arrested in Washington., Wendy Connett has 20+ years of experience as a financial journalist and editor. "A New Sense of Possibility: Starbucks and Amazon Wins Inspire Organizing at Starbucks, Trader Joe's, REI and Apple. There are a lot of ways to listen to The Daily. The authors thank William E. Spriggs, whose research inspired this report; John Schmitt for his thoughtful input; and Daniel Perez for his research assistance. Only 20% of all workers have access to paid family and medical leave, meaning that nearly 80% of workers do not (BLS 2020 Table 31). Labor Organizations and Unemployment Insurance: A Virtuous Circle Supporting U.S. Workers Voices and Reducing Disparities in Benefits. Newsletter The public sector has thehighest rates of union membership, such as police officers, firefighters, and teachers. To fully understand how unions intersect with health care coverage, we examinealongside the uninsured ratewhether a state has expanded Medicaid under the Affordable Care Act (ACA) to broaden eligibility to more low-income people. See Table 1 for more detail about these groupings. Garfield, Rachel, Kendal Orgera, and Anthony Damico. 2019. Medium-union-density states are the 17 states (including D.C.) in the middle of the union-density rankings (with union densities ranging from 8.3% to 13.3%). Economic Policy Institute (EPI). Brennan Center for Justice. Income is useful to examine alongside minimum wages because it gives us a picture of what the typical working household actually earns over the course of a year, not just the minimum employers are required to pay an individual worker. March 26, 2021. U.S. Census Bureau. While membership has been on the decline in recent decades, unions continue to play a major role in workers' rights. State Paid Family Leave Laws Across the U.S. Labor Movement Condemns Georgia Republicans Outrageous Voter Suppression Law, https://doi.org/10.1097/JOM.0000000000000562, States Made It Harder to Get Jobless Benefits. Access to health care also leads to clear positive health outcomes, including a lower rate of chronic illness and a higher likelihood of receiving preventative care for critical health conditions (Tolbert, Orgera, and Damico 2020; Washington 2001). States have passed restrictions on when and where early voting can take place, when and how people can register to vote, who can vote by mail, and what types of identification are required to vote, among other forms of voter suppression. 2013. A recent report by the National Employment Law Project estimated that since 2012, Fight for $15 has helped raise wages for nearly 26 million workers, winning over $150 billion in additional income (Lathrop, Lester, and Wilson 2021). Notes: The UI recipiency rate in each state is the share of unemployed workers who are receiving unemployment insurance benefits through the states regular UI program (i.e., not through federal emergency programs such as Pandemic Unemployment Assistance). Gould, Elise. Labor unions, in addition to abolishing child labor, played a role in that. Figure A depicts the data from Table 1 in map form. While the majority of U.S. states still, unfortunately, do not have either paid sick or family leave laws, the tangible impact that unions have had in their advocacy for such laws is evident in the pattern of progress so far. See Table 1 for more detail about these groupings. In our boom economy, more than 2.1 million new jobs were added to the market last year, but the number of unionized workers fell by 170,000. 2021. Thanks to unions collective bargaining successes, union workers have greater access to paid sick days than nonunion workers: More than nine in 10 workers93%covered by a union contract have access to paid sick days, compared with only 75% of nonunion workers (BLS 2020). Explaining the Erosion of Private-Sector Unions: How Corporate Practices and Legal Changes Have Undercut the Ability of Workers to Organize and Bargain. We average union density data across 2015 to 2019 for each state to give a more accurate estimate of states typical unionization rates over time. How Todays Unions Help Working People: Giving Workers the Power to Improve Their Jobs and Unrig the Economy. Union Effects on Health Insurance Provision and Coverage in the United States. National Bureau of Economic Research Working Paper no. For the purposes of this analysis, we divide the 50 U.S. states, plus the District of Columbia, into three groups based on their level of union density. From the Bargaining Table to the Ballot Box: Political Effects of Right to Work Laws. National Bureau of Economic Research Working Paper no. Unions help reduce wage gaps for women workers and workers of color. Shierholz, Heidi. In 2021, non-union workers had median weekly earnings that were 83% of earnings for workers who were union members, according to research from the Bureau of Labor Statistics. 2021. Not only do unions directly benefit the workers they represent, but their political advocacy helps to drive an array of strongly positive outcomes more broadly, especially in states where unions represent a sizeable share of the workforce. Power in America: The Rise and Fall of Labor Unions In The U.S. From the 1830s until 2012 (but mostly the 1930s-1980s). (The map in Figure H shows specifically which states had and had not expanded Medicaid by 2019, along with each states union density.). The United States Department of Labor released a report last week that chronicled the continued decline of the American labor movement in 2019. The UI recipiency rate in each state is the share of unemployed workers who are receiving unemployment insurance benefits through the states regular UI program (i.e., not through federal emergency programs such as Pandemic Unemployment Assistance). Low-union-density states are the 17 states with the lowest average union densities from 20152019 (all less than 8%). What Was The Main Purpose Of Labor Unions? A Gallup poll, released Aug. 30, 2022, found that 71% of Americans now support unions--up from 65% before the pandemic, and the highest support level since 1965.oo. Center on Budget and Policy Priorities (CBPP). But they are also an insufficient vehicle for mobilizing those workers to transform the world. Starting at 8 a.m. A labor union is a group of two or more employees who join together to advance common interests such as wages, benefits, schedules and other employment terms and conditions. Unions Help Narrow the Gender Wage Gap. Working Economics Blog (Economic Policy Institute), April 3, 2017. In sum, violence is shown to be employed as a defensive measure after . His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states. Frymer and Grumbach (2021) find that union membership reduces white racial resentment. See Table 1 for more detail about these groupings. Figure F shows a clear negative relationship between state unionization rates and the uninsured rate: States with high union densities have an uninsured population 4.5 percentage points lower, on average, than that of low-union-density states. On average, a worker covered by a union contract earns 10.2% more in wages than a peer with similar education, occupation, and experience in a nonunionized workplace in the same industry (EPI 2021e). Hersh, Adam S. 2021. Such unions can negotiate better wages, benefits, and working conditions. Theres an inherent imbalance of bargaining power between employers and employees. Farber, Henry S., Daniel Herbst, Ilyana Kuziemko, and Suresh Naidu. Beyond wages, benefits, and safety, recent scholarship shows the indirect effect unions have on peoples political and personal attitudes and on the broader community and economy as a whole. Why Were Labor Unions Effective. February 10, 2020. Businesses everywhere were booming. High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). Sojourner and Pacas (2018) also find that unionized workers use fewer public benefits. 116, June 2006. Labor is a major part of the economy. We do not include data beyond 2019 in our averages, to avoid any potential distortions related to the 20202021 COVID-19 pandemic and ensuing recession. Unions are not only good for workers, theyre good for communities and for democracy, High unionization levels are associated with positive outcomes across multiple indicators of economic, personal, and democratic well-being, Share of workers represented by a union ranges from 3.2% in South Carolina to 24.7% in New York, Union density of the 50 U.S. states plus D.C., in descending order and grouped into high-, medium-, and low-union-density states, is defined as the share of workers in the state who are. High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). Union Decline Lowers Wages of Nonunion Workers. https://doi.org/10.1097/JOM.0000000000000562. 2020a. Current law places too many obstacles in the way of workers trying to organize and gives employers too much power to interfere with workers free choice (Mishel, Rhinehart, and Windham 2020). We average union density data across 2015 to 2019 for each state to give a more accurate estimate of states typical unionization rates over time. High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). "U.S. Approval of Labor Unions at Highest Point Since 1965. Overview Labor unions arose in the nineteenth century as increasing numbers of Americans took jobs in factories, mines, and mills in the growing industrial economy. Providing Unpaid Leave Was Only the First Step; 25 Years After the Family and Medical Leave Act, More Workers Need Paid Leave. Working Economics Blog (Economic Policy Institute), February 1, 2018. 2021. A labor union is an organization formed by workers in a particular trade, industry, or company for the purpose of improving pay, benefits,. The combination of the direct wage effect for union members and this spillover effect for nonunion workers means unions are crucial to raising wages for working people and reducing income inequality (Card 1996, 2001; Card, Lemieux, and Riddell 2018). 2006. These include white papers, government data, original reporting, and interviews with industry experts. 2021a. Approval of Labor Unions at Highest Point Since 1965. Gallup, September 2, 2021. We find that states with higher union density have consistently higher minimum wages, incomes, and UI recipiency rates than states with lower union density. Unions also improve the health and safety of workplaces by providing health insurance and paid sick time, requiring safety equipment, and empowering workers to report unsafe conditions without fear of retaliation (Zoorob 2018; Amick et al. Medium-union-density states are the 17 states (including D.C.) in the middle of the union-density rankings (with union densities ranging from 8.3% to 13.3%). High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). 1996. Now Thats Hard to Undo, Black Womens Labor Market History Reveals Deep-Seated Race and Gender Discrimination, Approval of Labor Unions at Highest Point Since 1965, Union Effects on Health Insurance Provision and Coverage in the United States, Four States and D.C. Had Labor Force That Was More Than 30 Percent African American in 2020, The Effect of Unions on the Structure of Wages: A Longitudinal Analysis, The Effect of Unions on Wage Inequality in the U.S. Labor Market, Unions and Inequality over the Twentieth Century: New Evidence from Survey Data, Providing Unpaid Leave Was Only the First Step; 25 Years After the Family and Medical Leave Act, More Workers Need Paid Leave, Union Workers Are More Likely to Have Paid Sick Days and Health Insurance, How to Get Low-Wage Workers into the Middle Class, How Progressives Flipped the Script on Medicaid Expansion, A Winning Idea: Medicaid Expansion Prevails in Idaho, Nebraska, and Utah, How Medicaid Broke Through in Three Deep-Red States, and Could Do the Same in More, Labor Rights and Civil Rights: One Intertwined Struggle for All Workers, Healthcare Expenditure and Economic Performance: Insights from the United States Data, Mass. For example, many claim that unions are responsible for the decline of the U.S. auto industry. ", Economic Policy Institute. A network of state and local organizations improving workers' lives through research and advocacy. We find that, on average, the 17 U.S. states with the highest union densities: We find that the states with the highest union densities: A wealth of scholarship documents the positive effects unions have for workers, both those who are unionized and those who are not. Fact checked by Kirsten Rohrs Schmitt Unions are voluntary associations of workers formed to improve the negotiating leverage of their members through collective bargaining. 2020b. In this report, we document the correlation between higher levels of unionization in states and a range of economic, personal, and democratic well-being measures. Status of State Medicaid Expansion Decisions (interactive map). They negotiated better pay and working conditions for workers and were instrumental in helping to pass child labor laws. Unions have, both historically and in the present, been central to the fight to protect voting rights. Unions also help to reduce gender and racial/ethnic wage gaps. Romig, Kathleen, and Kathleen Bryant. Staff A labor union is an association of workers formed to negotiate collectively with an employer to protect and further workers' rights and interests. The 2019 data represent UI benefits from the states regular UI programs only.). https://dx.doi.org/10.1136/oemed-2017-104747. Furthermore, union employers are more likely to offer retirement plans and to contribute more toward those plans than comparable nonunion employers. The final category we examine is democratic well-being, specifically the right to vote. Hoffa spent time in prison for jury tampering and pension fraud and was pardoned by President Nixon in 1971. Voter restriction bills are more likely to pass in low-union-density states than in high-union-density states, Number of high-, medium-, and low-union-density states that have passed restrictive voting laws, 20112019, Program on Race, Ethnicity, and the Economy, Economic Analysis and Research Network (EARN), Health Insurance Coverage in the United States, Status of State Medicaid Expansion Decisions, Status of State Medicaid Expansion Decisions: Interactive Map. Unionization and health and economic outcomes are deeply intertwined. 12 Holdout States Havent Expanded Medicaid, Leaving 2 Million People in Limbo. National Public Radio (NPR), July 1, 2021. Does Right to Work Imperil the Right to Health? Union density is defined as the share of workers in the state who are represented by a union, including union members and other workers who are covered by a union contract, based on the variable union from EPI extracts of CPS-ORG microdata. However, in the absence of such a program, several states have enacted paid family leave laws. This right could be a fundamental component in strengthening economic security, quality of life, civil and voting rights, and racial justice in our communities. Low-union-density states are the 17 states with the lowest average union densities from 20152019 (all less than 8%). Union densityis defined as the share of workers in the state who arerepresented by a union,includingunion membersand other workers who arecovered bya unioncontract,basedon the variable unionfrom EPI extracts of CPS-ORG microdata. Historical Income Tables: Households (data tables). The first two failed due to different reasons, while the AFL succeeded. Center on Budget and Policy Priorities, June 2021. Paid sick and family leave is necessary not only for physical health, but for mental health as wellmitigating the stress of illness or family change by providing economic and job security during extended time off work. One simple way to help accomplish this would be to pass the Protecting the Right to Organize (PRO) Act, which will help restore the right to organize and give workers access to a union and the well-being it promotes. Says Floridas Unemployment System Was Designed to Create Pointless Roadblocks. National Public Radio (NPR), August 6, 2020. Now Thats Hard to Undo. New York Times, April 30, 2020. See Table 1 for more detail about these groupings. 2001. Medium-union-density states are the 17 states (including D.C.) in the middle of the union-density rankings (with union densities ranging from 8.3% to 13.3%). The Effect of Unions on the Structure of Wages: A Longitudinal Analysis. Econometrica 64, no. 2021. Please use a modern browser such as Chrome or Firefox to view the map. Wamsley, Laurel. Key Takeaways. Sources:EPI analysis of 20152019 Current Population Survey Outgoing Rotation Group (CPS-ORG) microdata for all workers ages 16 and older; Brennan Center for Justice, State Voting Bills Tracker 2021, last updated May 28, 2021. State minimum wages establish a wage floor for the minimum hourly wage employers must pay workers in that state. What is a labor union and when were they first formed? In their role as intermediary institutions that can act as a complement to legislated benefits and protections, unions also inform and educate the workers they represent about the unemployment insurance system and guide them through the application process (Walters and Mishel 2003). Minimum Wages and Racial Inequality. Quarterly Journal of Economics 136, no. High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). Updated February 2021. As we demonstrate below, states with higher union density are more likely to have higher levels of all three personal well-being metrics. New research, insightful graphics, and event invites in your inbox every week. 2018. Unions also have powerful effects on workers' lives outside of work. A Winning Idea: Medicaid Expansion Prevails in Idaho, Nebraska, and Utah. NPRs All Things Considered, November 7, 2018. 2018. Hourly wages for women represented by a union are 4.7% higher on average than for nonunionized women with comparable characteristics (EPI 2021d), and research looking at specific cases suggests that unions reduce gender wage gaps for similar jobs within a given workplace (Gould and McNicholas 2017). As Figure C shows, the high-union-density states (listed in Table 1) have a higher average state minimum wage ($11.40) than the medium- and low-union-density states (at $9.22 and $8.10, respectively). 2016. We look at legislation restricting voting and find that there is a strong correlation between voting restrictions and low union density. Conversely, the surprising victory of Medicaid expansion in low-union-density, high-Black-population states such as Louisiana and Virginia suggests that when unions advocate for popular issues across the nation, the momentum can spread, and further victories can contribute to lowering racial and economic disparities despite the odds and even in states with a low union presence. Sources:EPI analysis of 20152019 Current Population Survey Outgoing Rotation Group (CPS-ORG) microdata for all workers ages 16 and older; Department of Labor Employment & Training Administration, Unemployment Insurance Data Chartbook. The extracts are publicly available. Economic Policy Institute, August 2016. While there are some regional clusters within the density groups, unionization rates vary nationwide. Why Labor Unions Were Successful. The Far-Reaching Benefits of the Affordable Care Acts Medicaid Expansion (chart book). Kaiser Family Foundation, November 2020. Arkansas, Missouri, Nebraska, Oklahoma, and Utah expanded Medicaid in 2020 or 2021 and so they are listed in the Did Not Expand Medicaid category to be consistent with the fact that we report union density data from 2019 and earlier. EPI Testimony on Increasing the Minimum Wage to $15 per Hour. Testimony before the U.S. House of Representatives Committee on Small Business, Subcommittee on Oversight, Investigations, and Regulations, February 24, 2021. EPI analysis of 20152019 Current Population Survey Outgoing Rotation Group (CPS-ORG) microdata for all workers ages 16 and older. Critics argue, among other things, that unions are anti-employer and that union contracts make it more difficult for companies to fire unproductive employees. 2015. Accessed August 2021. Median incomes are by household. 2020. The final measure of economic well-being we examine is the unemployment insurance (UI) recipiency rate. This wage advantage is known as the union wage premium. But unions dont just help union workersthey help all workers (Bivens et al. 8238, April 2001. https://doi.org/10.3386/w8238. 2: 296315. The large differences in the UI recipiency rates across states are not based on any particular economic logic. 2015. Their problems were low wages and unsafe working conditions. How Unions Help All Workers. Although there has been a resurgence in pro-union sentiment from . Labor unions continue to play a major role in workers' rights and the economy of the United States. In the four decades through 2019, low-wage workers (those at the 10th percentile of the wage distribution, that is, those who make less than 90% of all workers) saw their wages rise only 3.3% in inflation-adjusted terms, compared with a rise of 15.1% for the median worker (right in the middle of all wage earners) and 63.2% for high-wage workers (those at the 90th percentile, who make more than 90% of all workers) (Gould 2020a). Their purpose is to make sure that employers are following. Low-union-density states are the 17 states with the lowest average union densities from 20152019 (all less than 8%). We do not include data beyond 2019 in our averages, to avoid any potential distortions related to the 20202021 COVID-19 pandemic and ensuing recession. National Employment Law Project, July 2021. In the present, minimum wage campaigns, which are strongly backed by unions, have played a significant role in raising incomes and lowering wage disparities for workers of color (Lathrop, Lester, and Wilson 2021). https://doi.org/10.1093/qje/qjaa031. Low-union-density states are the 17 states with the lowest average union densities from 20152019 (all less than 8%). Union-supported Medicaid expansions are one more example of a spillover effect and channel through which unionization benefits not only union members, but also members of the broader community. Walters, Matthew, and Lawrence Mishel. Accompanying data tables downloadable from https://www.census.gov/library/publications/2020/demo/p60-271.html. Legislators Strike Deal with Bill on Family Leave, Sales Tax Holiday and $15 Minimum Wage, 12 Holdout States Havent Expanded Medicaid, Leaving 2 Million People in Limbo, EPI Testimony on Increasing the Minimum Wage to $15 per Hour, Do Unions Promote Members Electoral Office Holding? Union density is defined as the share of workers in the state who are represented by a union, including union members and other workers who are covered by a union contract, based on the variable union from EPI extracts of CPS-ORG microdata. 2021. Quantifying the Impact of the Fight for $15: $150 Billion in Raises for 26 Million Workers, with $76 Billion Going to Workers of Color. Kaiser Family Foundation, January 2021. Levey, Noam N. 2018. Therefore Idaho, Kentucky, Maine, and Montana, which expanded Medicaid in 2019, are grouped in the Expanded Medicaid category, while Arkansas, Missouri, Nebraska, Oklahoma, and Utah, which expanded Medicaid in 2020 or 2021, are listed in the Did Not Expand Medicaid category. [2] However, that trend has since reversed. Union density is defined as the share of workers in the state who are represented by a union, including union members and other workers who are covered by a union contract, based on the variable union from EPI extracts of CPS-ORG microdata. But thats not all unions do. Stewart, Emily. 2021. For example, out of the 17 low-union-density states we categorize, 10, or about 59%, had a share of Black workers in the labor force higher than the national average in 2020 (BLS 2021). Key Facts About the Uninsured Population. Simmons-Duffin, Selena. Bivens, Josh, Lora Engdahl, Elise Gould, Teresa Kroeger, Celine McNicholas, Lawrence Mishel, Zane Mokhiber, Heidi Shierholz, Marni von Wilpert, Valerie Wilson, and Ben Zipperer. 2021. The Future. Bulletin 2793, September 2020. 2020. Historically, labor and workers rights were a central focus of the civil rights movement and went hand in hand with voting rights (Moore 2021). Union Workers Are More Likely to Have Paid Sick Days and Health Insurance. Working Economics Blog (Economic Policy Institute), March 12, 2020.