UAW's record deal could boost others' wages as labor notches another victory (updated)
30/10/2023 14:14
(Updates first and third paragraphs, adds UAW comments in
paragraphs eight and nine)
By Bianca Flowers and Lisa Baertlein
Oct 30 (Reuters) - The tentative agreements reached
between the United Auto Workers and the Detroit Three automakers
mark another major victory for labor unions that have turned up
the pressure on big corporations to put better deals on the
table.
Unions have taken an aggressive approach to campaigning with
a series of high-profile battles across the industrial, auto,
entertainment and healthcare industries. Experts say gains won
by unions could spur more organizing and motivate non-unionized
companies to try to stave off those efforts.
The UAW's talks, replete with weekly addresses by union
President Shawn Fain, were among the most unabashed. The union
came to tentative agreements with Ford Motor F.N and Chrysler
parent Stellantis STLAM.MI in recent days, followed by General
Motors GM.N early Monday.
"This is a set of negotiations, historically, where gains
made in Detroit would be viewed and adapted by many other
industries across the economy," said Harley Shaiken, labor
professor at the University of California, Berkley.
Union worker compensation has finally caught up to non-union
wage increases dating from the COVID-19 pandemic, according to
U.S. federal data, as the labor market has remained tight with
unemployment at just 3.8%.
The tentative deals are expected to amount to total pay
hikes of more than 33% when compounding and cost-of-living
increases are factored in. The agreements may be a selling point
for non-union shops to push for unionization, said San Francisco
State University labor and employment professor John Logan.
"The Big Three would want the UAW to organize Tesla," he
added.
Nissan 7201.T and other competitors may feel compelled to
boost wages to retain their workforce. The union made its
intention to expand autoworker unionization clear in a series of
posts on social media late Sunday that highlighted the length of
the contract, which ends in 2028.
"One of our biggest goals coming out of this historic
contract victory is to organize like we’ve never organized
before," the UAW wrote. "When we return to the bargaining table
in 2028, it won’t just be with the Big Three, but with the Big
Five or Big Six."
Public support for unions has helped engagement in
traditionally unionized industries such as manufacturing and
healthcare. A Reuters poll showed the majority of Americans
stand behind striking workers.
Employee-led unionization efforts at retailers, such as
Amazon AMZN.O and Starbucks SBUX.O , have reflected a
consensus among workers who see unions as a means to secure
better wages and working conditions.
Organization has been difficult in recent years. About 11.3%
of workers were represented by unions last year compared with
23.6% in 1982, according to data analyzed by the Economic Policy
Institute.
RIPPLE EFFECT
The UAW contracts are among many deals reached this year,
along with agreements at UPS and construction equipment maker
Caterpillar CAT.N . Workers at other companies, like Mack Truck
and equipment makers CNH Industrial CNHI.MI and Deere & Co
DE.N have all rebuffed initial deals despite raises that in
some contracts appeared significant.
Increased awareness among workers about record profits has
translated to company concessions and improved deals, said
Marcos Feldman, senior researcher at Jobs to Move America, a
labor organizing nonprofit.
"The task is to solidify and institutionalize it," Feldman
said. "Unionizing efforts are the most aggressive they've ever
been."
President Joe Biden considers unions a cornerstone of his
economic policies, including the $1.2 trillion bipartisan
infrastructure law to boost American manufacturing.
Employers may respond by boosting worker pay to hold off
union efforts, or step up efforts to prevent unionization.
Some Starbucks employees have claimed the coffee chain
illegally retaliated against organizers by firing employees and
closing stores. Earlier this month the U.S. Department of Labor
ordered the company to disclose documents pertaining to
anti-union spending.
Amazon has dissuaded unionization, with the National Labor
Relations Board (NLRB) recently ruling the e-commerce giant had
threatened to withhold wages and benefits from employees at two
New York warehouses.
UPS AND ITS RIVALS
The UPS deal in August raised pay and eliminated a two-tier
wage system for drivers at the Atlanta-based company. That
bolstered organizing efforts among Amazon workers and put
pressure on UPS rivals to close a growing gap in pay.
When the new UPS agreement expires in 2028, the average
full-time U.S. driver will make about $170,000 annually in pay
and benefits, significantly more than peers employed by
contractors for FedEx FDX.N and Amazon.
Amazon in September gave delivery contractors $440 million
for the year to raise average driver pay to an estimated $20.50
per hour. Amazon told Reuters that payment was part of normal
increases and not influenced by the UPS contract. It did not
provide prior-year comparisons.
"One thing we've seen in this economy is that workers are
more likely to quit when they are unhappy," said Kate
Bronfenbrenner, director of labor education research at Cornell
University. "Industries where they're more likely to stay are
the ones where they unionize and they stay and fight."
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GRAPHIC: Unionized workers catch up to non-unionized workers
https://tmsnrt.rs/3QySYTp
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(Reporting by Bianca Flowers; Editing by Jonathan Oatis and
Alistair Bell)
((Bianca.Flowers@thomsonreuters.com;))