Workers will find many benefits if they become members of a union. They will have more leverage when bargaining as a group, rather than as an individual, to get higher wages, increased benefits and improved working conditions. Studies show that union members in many fields earn more money than non-unionized employees. But be careful. National unions are always looking to expand their reach to different workplaces. Their priorities may not be the same as yours.
The debate over whether or not to form a union is propelled in part by the decreasing number of U.S. employees who are union members. This trend started in the second half of the 20th century and appears to be continuing into the 2000s. According to the U.S. Department of Labor's Bureau of Labor Statistics, the union membership rate of wage and salary workers was estimated in one study to be 20.1% in 1983. That number decreased to 12.1% in 2007. The AFL-CIO estimates that about 15.4 million workers are union members as of 2008. Compare that to the mid 1950s, when trade union membership hit a historical peak with about 35% of the labor force being union members. There are many reasons for the decline, such as technology replacing workers, low-paying jobs shipped overseas, and the changing view of management toward employees. In addition, workers today want to be able to take part in decisions over how their work is structured, how it contributes to the success of the company, and want to protect and advance their economic self-interest, explains MIT scholar Thomas A. Kochan.
Argument for Unions
Can unions really deliver on promises for workers? Yes they can, says union leaders and those who support them.
- A study cited by the Economic Policy Institute suggests unions raise the wages of unionized workers by about 20% and raise total wages and benefits by about 28%.
- Another study by the U.S. Department of Labor’s Bureau of Labor Statistics reports that among full-time wage and salary workers, union members had median weekly earnings of $863 while those who were not represented by unions had median weekly earnings of $663.
- While only 14 percent of nonunion workers have defined-benefit pensions for retirement, 68 percent of union workers do, according to the AFL-CIO. The Economic Policy Institute estimates employers of unionized employees contribute 28% more toward pensions than counterparts without unions.
- Four out of five union workers get health insurance benefits but only about half of nonunion workers do, according to the AFL-CIO. Unionized workers also pay 18% lower health care deductibles and, after retirement, unionized workers are 24% more likely to be covered by health insurance paid for by their employer.
- About 62% of unionized workers have short-term disability benefits. Non-union workers with short-term disability benefits total 35%, according to the AFL-CIO.
- The AFL-CIO also says that unionized workers have 15 days average of paid vacation while non-unionized workers’ average days of paid vacation totals 11.75 days.
- Unions also give employees more power to bring change to a workplace than if they were trying to do it all on their own. An individual problem faced by a single employee can be addressed by the union. If needed, the national leadership can be contacted to bring national attention and national pressure on an employer.
- Unions also benefit non-union employees. Called the "union threat effect," it takes place when nonunion workers get paid more because their employers are trying to prevent or delay unionization.
Be Cautious: Arguments Against Unions
Before thinking that forming a union is the panacea to all workplace problems, think again. There are drawbacks to unions.
- Every occupation is different and some workers may not get the salary increases with unionization that others get. For instance, white collar employees are traditionally not unionized in the private sector.
- When unionized workers are paid salary and benefits everyone is treated equally. They are not judged as individuals. For instance, outstanding teachers are not given merit pay in most union settings.
- Unions by their very nature are conservative. They gained power, their leadership is in place and they don’t want anything to change that. A competing union or a new president pushing out the old one will be resisted.
- Unions may try to resist changes that could make the company more competitive. This could lead to lower revenue and less money to pay employees.
- The non-union company may be able to sell goods and services at a lower price, thus hurting the future of the unionized company. The U.S. auto industry is an example.
- Unions pushing for higher wages and benefits can make it harder for some groups trying to get a job.
- If an employer is hard to deal with without a union, bringing in a union could make it worse. They could get even more adamant.
- Unions may discourage private resolution of employee-employer disputes that now get appealed to government agencies or courts.
- Many workers are unhappy with their unions. According to the Center for Union Facts, a union watchdog group, hundreds of votes are taken yearly to throw unions out in a process known as decertification. In 2004, workers decertified unions in 65% of decertification elections, according to the center.
When considering whether to form a union, remember that wages and benefits may increase for you and your fellow employees. Unions have done a lot to improve the lives of U.S. workers, and took an active role in bringing an end to such things as child labor and inhumane work conditions. Many government employees remain unionized.
But you also have to look at the long run and consider whether you and your co-workers will be well-served at a time when private companies can simply ship entire divisions overseas if the cost of doing business in America gets too high. Beware of these risks, but enjoy the possible benefits from a higher weekly paycheck. The choice is yours.
