UAW's record deal could boost wages at big organisations
THE tentative agreements reached between the United Auto Workers and the Detroit Three automakers mark another major victory for labour unions that have turned up the pressure on big corporations to put better deals on the table.
The Detroit Three refers to the three largest car manufacturers in the US: General Motors, Stellantis and Ford Motor Company.
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 organising and motivate non-unionised 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 and Chrysler parent Stellantis in recent days, followed by General Motors early Monday (Oct 30).
“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, labour 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 US federal data, as the labour market has remained tight with unemployment at just 3.8 per cent.
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The tentative deals are expected to amount to total pay hikes of more than 33 per cent when compounding and cost-of-living increases are factored in. The agreements may be a selling point for non-union shops to push for unionisation, said San Francisco State University labour and employment professor John Logan.
Nissan and other competitors may feel compelled to boost wages to retain their workforce. The union made its intention to expand autoworker unionisation 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 organise like we’ve never organised before,” the UAW wrote.
Public support for unions has helped engagement in traditionally unionised industries such as manufacturing and healthcare. A Reuters poll showed the majority of Americans stand behind striking workers.
Employee-led unionisation efforts at retailers, such as Amazon and Starbucks, have reflected a consensus among workers who see unions as a means to secure better wages and working conditions.
Organisation has been difficult in recent years. About 11.3 per cent of workers were represented by unions last year, compared with 23.6 per cent in 1982, according to data analysed by the Economic Policy Institute.
The UAW contracts are among many deals reached this year, along with agreements at UPS and construction equipment maker Caterpillar. Workers at other companies, like Mack Truck and equipment makers CNH Industrial and Deere & Co 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 labour organising nonprofit.
“The task is to solidify and institutionalise it,” Feldman said. “Unionising efforts are the most aggressive they’ve ever been.”
President Joe Biden considers unions a cornerstone of his economic policies, including the US$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 unionisation.
Some Starbucks employees have claimed the coffee chain illegally retaliated against organisers by firing employees and closing stores. Earlier this month the US Department of Labor ordered the company to disclose documents pertaining to anti-union spending.
Amazon has dissuaded unionisation, 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.
The UPS deal in August raised pay and eliminated a two-tier wage system for drivers at the Atlanta-based company. That bolstered organising 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 US driver will make about US$170,000 annually in pay and benefits, significantly more than peers employed by contractors for FedEx and Amazon.
Amazon in September gave delivery contractors US$440 million for the year to raise average driver pay to an estimated US$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 labour education research at Cornell University. “Industries where they’re more likely to stay are the ones where they unionise, and they stay and fight.” REUTERS
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