Explainer: Why U.S. labor unions are gaining leverage in contract talks with big employers
05/07/2023 18:42
By Aishwarya Nair
July 5 (Reuters) - U.S. union workers are finding more
solid footing during contract negotiations with employers as a
tight labor market allows employees to flex more bargaining
power.
Airline pilots, railroad employees, dockworkers, and others
have pushed for higher pay and better benefits, rebuffing offers
from companies that in some contracts appeared significant.
The latest heated negotiations are taking place between
parcel delivery giant United Parcel Service UPS.N and the
Teamsters Union. The two on Wednesday accused each other of
walking away from negotiations over a new contract.
WHAT ARE UNIONS LOOKING FOR IN TALKS WITH BIG COMPANIES?
Tired of stagnant pay, high healthcare costs, scant sick
time and uncertain scheduling, American union workers are
seeking higher wages, better work-life balance and job upgrades
as the pandemic made many of them rethink their priorities.
Late last year, U.S. freight railroad workers rejected a
five-year contract that included a 24% wage increase, citing a
lack of paid sick leave. Workers were angry after the deal was
imposed by Congress and President Joe Biden. Unions later
reached separate sick-pay agreements.
In January, factory workers at CNH Industrial CNHI.MI
agreed to a contract that offered wage increases and higher
shift premium and other improvements.
WHY ARE U.S. UNIONS GROWING IN POWER?
Union workers are having a moment due to declining
unemployment rates and a lack of skilled workforce, prompting
companies to dish out better pay packages and benefits to
prevent employees from leaving for greener pastures.
Companies in many industries are finding employees downright
impossible to replace, particularly with the jobless rate just
off 50-year lows.
Employees have been emboldened by a series of related
events: soaring company profits, a renewed respect for essential
workers and rekindled political will in Washington for labor
unions.
WHAT ARE SOME NOTABLE UPCOMING CONTRACT NEGOTIATIONS?
The United Auto Workers' (UAW) national contracts with
Detroit automakers Stellantis NV STLAM.MI , General Motors Co
GM.N and Ford Motor Co F.N are set to expire on Sept. 14.
Union leaders are ratcheting up pressure on the automakers
for substantial changes to the current master contracts. The
union wants an end to the current two-tier wage system under
which new hires at the Detroit Three earn 25% less than UAW
workers with five or more years on the job.
Among U.S. airlines, Southwest Airlines LUV.N is yet to
reach an agreement with its pilots union. Members of Southwest
Airlines Pilots Association have voted in favor of authorizing a
strike.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Sriraj
Kalluvila)
((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs
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