Labor Union Pros and Cons: Everything You Need to Know.

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In recent years, the American Labor movement has seen dramatic change in the face of challenges and unprecedented moments.

The COVID-19 pandemic has changed how workplaces function. It has also shifted what employees expect, pushing unions to adapt by focusing on issues like flexible schedules, remote work, and health protections while using new organizing tactics.

Here’s what’s interesting: despite all this upheaval, union membership has stayed surprisingly steady. Even though the percentage of union workers slightly decreased from 10.3% to 10.1% between 2021 and 2022, the total number of union members increased by 200,000, reaching 14.3 million.

Sounds contradictory, right? But it makes sense when considering that the overall workforce grew – there were just more jobs in general. So even though unions were growing, they weren’t quite keeping pace with overall job growth. That’s not unions losing steam – it’s just the workforce getting bigger overall.

Even then, the debate ensues – is joining a union really in the best interests of workers? Gen Z workers face an uncertain economy as they enter the workforce, and they are emerging as some of the strongest union supporters. They bring fresh energy to the labor movement, often showing more enthusiasm for unions than their older colleagues.

On the other hand, many workers argue that unions bring many challenges to management-employee relations and also strain their wallets.

In this article, we explore labor union pros and cons so you can decide whether unionizing is best for you.

The union debate: why workers stand divided

labor-union-the-union-debate — Source: Working Class Perspectives

Let’s talk about this union debate and consider what workers are weighing here: On one side, unions have a strong track record of fighting for better wages and safer workplaces. But then you’ve got folks who look at their union dues and already-decent paycheck and think, “Do I really need this?” Some have great relationships with their managers and worry a union might complicate things.

What’s fascinating is how much personal experience plays into this. I’ve heard stories from both sides – workers whose unions protected them during tough times and others who felt unions created more problems than they solved. Let’s explore the arguments on both sides of the table below.

Pro-union perspectives: Why do some workers want to unionize?

What are the benefits of a labor union? Workers who support forming unions join to safeguard their wage levels and get benefits. That is straightforward- they want better pay and job security.

According to the Economic Policy Institute, unionized workers earned an average wage 11.2% higher than non-union workers. Their benefits packages were also more generous. During the COVID-19 pandemic, union workers were 15% more likely to keep their health insurance than nonunion workers.

labor-union-pro-union — Source: Economic Policy Institute

Another source of pro-union feelings is the workplace safety issue. Amazon’s Staten Island workers unionized after complaining about unsafe pandemic rules and demanding quotas. Injury rates drove the campaign said to be twice the industry average.

Anti-union perspectives: Why are some workers against unionizing?

Many workers are active opposers of unionization efforts. One of the reasons for this is union dues, which usually run around 1-2% of wages.

What is interesting about Bessemer Amazon’s vote is that many workers who voted “no” said it came down to money. They felt their pay was already good compared to nearby jobs and didn’t want to pay union dues. When wages are competitive, union dues can seem like an extra cost. It is understandable when you’re making competitive wages, those union dues can feel like an unnecessary expense.

Labor union pros and cons

So, let’s get to the crux of the matter – is unionizing worth the effort? After many conversations with both pro and anti-union workers, here are some labor union pros and cons you must know.

Pros	Cons
Higher wages: Union workers average 11.2% more than non-union workers in the same jobs.	Union dues: Periodic contributions paid. (usually 1-2% of salary)
Better benefits: Generally more substantial health insurance, retirement plans, and paid time off.	Less flexibility at work: Contracts may restrict schedule changes or job duty changes.
Workplace safety: Unions can bargain for better safety conditions and ensure standards.	Seniority systems: Can favor length of service over merit in promotions/assignments.
Job security: Against arbitrary dismissal by formal grievance procedures.	Potential workplace tension: Can lead to adversarial relations with management.
Legal representation: Support in disputes with management.	Strike risks: Loss of wages in labor disputes.

Let’s dive into some real-world examples to consider labor union pros and cons and how they play out in reality.

Labor union case studies and outcomes

Case Study 1: United Auto Workers (UAW) Strike Against Big Three Automakers

In 2023, the United Auto Workers (UAW) initiated strikes against the Big Three automakers—General Motors, Ford, and Stellantis—demanding better wages, benefits, and job security.

The strikes led to substantial gains for the workers, including:

Wage increases: Employees secured a 25% pay raise over the contract period.
Enhanced benefits: Improved retirement benefits and cost-of-living adjustments were reinstated.
Job Security: Promises were made to keep manufacturing plants running, protecting many jobs.

These achievements highlight how labor actions can lead to better terms for workers.

Case Study 2: Starbucks Workers’ unionization efforts (challenging outcome)

In 2023, Starbucks workers across the U.S. started forming unions to get better pay, better working conditions, and job security.

Union Challenges: Some stores formed unions, but many faced strong company pushback. Negotiations took a long time, and some union efforts failed.

Strikes and Protests: Workers went on strike because contract talks were stuck and conditions worsened.
Minimal Gains: In most cases, workers didn’t get better wages or benefits, even after striking or trying to unionize. This is a common issue in some corporate environments.

These examples show the mixed results of labor union activities in 2023. There were both successes and challenges in the fight for workers’ rights.

labor-union-starbucks-workers — Source: Associate Press

Case Study 3: The Walmart Strike

Walmart has always opposed unions and wants employees to talk directly to management instead of using unions.

labor-union-walmart-strike — Source: Union Advocate

It cites its open-door policy as a method of voicing concerns that do not require the help of unions. Critics say this is a means of keeping labor costs down and avoiding collective bargaining to maintain its low-price model.

Walmart holds mandatory meetings and trains managers to stop unions from forming. They have even closed stores where union efforts began. While this keeps their U.S. workforce union-free, labor advocates say it limits workers’ ability to ask for better pay and conditions.

For many Walmart employees, unionization represents hope for change. Workers have pushed for unions due to unpredictable schedules, low wages, and poor healthcare coverage. Many feel powerless when raising issues like understaffing and safety, as their concerns are often ignored.

The impact of these advantages and disadvantages can vary depending on the workplace, the industry, or even the union itself. For some union members, higher wages might be the top priority. Others may feel that the cost of union dues isn’t worth it and prefer the flexibility and independence of negotiating independently.

Potential for a closed, un-diverse union culture

Looking back at the union efforts in 2023, it’s a mixed bag. While some workers made real progress, others ran into serious roadblocks. The Starbucks situation highlights how challenging these labor movements can be in today’s corporate environment. Even with strong worker support and public attention, success isn’t guaranteed.

What’s particularly interesting is how this fits into the broader pattern of labor organizing we saw throughout the year.

It wasn’t just Starbucks. Similar stories happened in tech companies and manufacturing plants. Some workers found strength in numbers and improved their conditions. Others struggled against powerful corporate opposition.

These experiences show us that while unions can be powerful tools for worker advocacy, they’re not magic solutions. Success often depends on a complex mix of factors – company culture, economic conditions, public support, and timing.

Yet, information is power; the more you know, the better you can negotiate for your well-being at the workplace. While exploring labor union pros and cons is one aspect, knowing union laws is another way to keep yourself informed. Here’s a CallHub guide to help: Navigating Union Laws: Unions, Here is Your Guide.

Hope you stay reading and stay informed.