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This Labor Day, Thank Unions For Boosting Wages

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Bryce CovertLabor Day is now seen as the official end of summer and a day off (at least for those who actually get paid holiday leave) to grill or go to the beach one last time. But when it was originally conceived as a federal holiday, it was as a concession to the labor movement after bloody union unrest that left 30 striking workers dead. It was meant as a day to celebrate the efforts and sacrifices of unionized workers.

A shrinking share of Americans are union members today. But the benefits brought about by the union movement are still just as strong, particularly when it comes to workers’ pay.

CREDIT: AP Photo/Bryan R. Smith
CREDIT: AP Photo/Bryan R. Smith

Being in a union is particularly helpful for marginalized groups that tend to be paid less than white men. A new report from the Center for Economic and Policy Research found that black union workers earn wages that are, on average, 16.4 percent higher than black workers who aren’t in a union. The same is true for women: a report from the Institute for Women’s Policy Research found that women in a union earn 30.9 percent more than women who aren’t unionized.

CREDIT: Dylan Petrohilos
CREDIT: Dylan Petrohilos

Unionization also yields salary benefits for white men, who get a 20.1 percent boost for being in a union. But the wage-boosting power of unions has been hampered as the share of workers who belong to one has declined. In 1983, the earliest year the Bureau of Labor Statistics has data for, 20.1 percent of the workforce belonged to a union. Today that share has been cut nearly in half, down to 11.1 percent.

CREDIT: Dylan Petrohilos
CREDIT: Dylan Petrohilos

That’s hurt everyone’s wages, not just unionized workers. The wage-boosting power of unions usually spills out into other workplaces because they set standards that everyone ends up adopting. A new report from the Economic Policy Institute found that for men working in the private sector who aren’t in a union, their weekly wages would be about 5 percent higher if union membership had stayed at the same rate as it was in 1979. That would mean an extra $2,704 per year on average. Non-union women would also benefit, but the impact would be smaller- a 2 to 3 percent increase in wages- because women have historically been a much smaller share of union workers.1-7CCL6l2MCZiQP3S-rXrB4Q

The drop in union membership, and the subsequent erosion of the wage benefits for all workers, has played a role in widening wage inequality, holding down pay at the bottom of the scale but less so at the top. In fact, other researchers have found a strong correlation between the fall of union power and the rise of income inequality.

This article was originally posted at Thinkprogress.org on September 5, 2016. Reprinted with permission.

Bryce Covert  is the Economic Policy Editor for ThinkProgress. Her writing has appeared in the New York Times, The New York Daily News, New York Magazine, Slate, The New Republic, and others. She has appeared on ABC, CBS, MSNBC, and other outlets.

 

 


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Unite Here and Hyatt Hotels Reach Broad Peace Agreement

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Bruce VailHospitality workers union Unite Here has reached an expansive labor agreement with Hyatt Hotels Corp that is expected to end a years-long series of workplace struggles that has attracted attention around the country and across the globe.

The agreement is aimed at ending the union’s ‘Hyatt Hurts’ global boycott campaign by settling outstanding labor contract issues at nine broadly scattered hotels and creating a path forward for new union organizing efforts at a select number of the company’s non-union facilities, Unite Here President Donald Taylor tells Working In These Times.

“We feel good about this, but obviously there is still work to do,” to repair relations with Hyatt, Taylor says. “This campaign has been going on for four years and it was pretty clear that neither side was going to cave…For both sides, a better way…was to reach a compromise,” he says.

Full details of the agreement will be released only gradually, Taylor says, as union members are briefed on the specific provisions and ratification votes are held in the four cities where new contracts are being finalized. Those include Hyatt’s home city of Chicago, Los Angeles, San Francisco and Honolulu. In all of these cities, the union says, new contracts will provide wage increases and broad protections for existing pension and health care benefits that had previously been under attack by the company.

“We are delighted that our associates in Chicago, Los Angeles, San Francisco and Waikiki will have [new] contracts and the pay raises that go with them,” states Doug Patrick, Hyatt’s senior vice president of human resources. Those contracts will cover about 3,000 union workers at nine separate hotels in the four cities, the company says, and will extend to 2018.

Once the new contracts have been ratified, Unite Here will end its highly publicized global boycott of the Hyatt chain, Taylor says. That should take 4 to 6 weeks, the union leader indicates. A neutrality agreement to allow organizing at select non-union Hyatt hotels will go forward at that time as well.

The boycott gained many strong backers, from the National Organization for Women to the National Football League Players Association.

The campaign even reached into the White House, with President Barack Obama receiving criticism for his appointment of Hyatt heir Penny Pritzker as U.S. Secretary of Commerce. Pritzker, the daughter of Hyatt co-founder Donald Pritzker, claimed to have no influence on the chain’s day-to-day business affairs, despite serving on the board of directors and owning some 10 million shares of company stock. During the nomination process, Pritzker promised to remove herself from Hyatt’s board once she is confirmed by the U.S. Senate.

Taylor says there is no connection between the Pritzker’s confirmation last week and announcement of the Hyatt deal this week. “Speaking for the union, I can tell you that it didn’t have any effect on us at all. I can’t speak for Hyatt though,” he says.

As part of the compromise between Unite Here and Hyatt, the union is dropping demands that the company agree to “card check” certification procedures at a number of hotels where the union has new organizing campaigns underway. The card check, in which union certification is achieved by collecting signed cards from a majority of workers who want a union, has long been staunchly opposed by Hyatt. The two sides have agreed to a compromise, Taylor says, in which secret ballot elections will be held under the direction of an independent third-party arbitrator. Hyatt will agree not to actively campaign against the union, as it has in the past, he indicates.

Unite Here’s concession on card check was key to the agreement, Hyatt’s Patrick indicates. “Hyatt has long maintained that our associates should have the right to vote on whether they wish to be represented by a union. We are pleased that our associates will continue to have the opportunity to vote whether or not they wish to be represented by Unite Here. The voting process will take place at those locations where Hyatt and Unite Here agree to it,” he tells Working In These Times in an e-mail message.

One aspect of the national agreement that is being held close to the vest is the location of the different hotels where new organizing elections are to be scheduled. Taylor confirms rumors that the high profile organizing campaign at the Hyatt Regency Baltimore is among them, but declines to name any of the others.

Taylor concludes by saying that the national agreement does not cover all of the Hyatt hotels where the union and the company have clashed, so observers can expect to see union activism continuing in some places. “Some campaigns will continue, but we want to diminish the skirmishing in some markets,” he says, without offering much detail. “Hopefully, the national agreement will lead to better understanding all around,” so that remaining points of contention can be resolved more easily over time, he suggests.

This article was originally printed on Working In These Times on July 2, 2013.  Reprinted with permission.

About the Author: Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.


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New York City Office Cleaner Strike Averted by Tentative Deal

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Laura ClawsonA potential strike by New York City office cleaners was averted Friday night when SEIU Local 32BJ and the Realty Advisory Board came to a tentative agreement. The agreement, which must be ratified by workers, includes regular wage increases and $1,100 in bonuses and keeps employer-paid health coverage. Those victories for the current office cleaners weren’t all, though: the agreement does not include a two-tier wage system under which new hires would have been permanently paid just 70 percent of what current workers earn. Instead (PDF), new hires will begin at 75 percent and rise to the full pay rate in steps over a period of 42 months. Workers will also be able to continue contributing to the union’s political fund through automatic payroll deductions, another thing the building owners had sought to eliminate.

“The new contract is not just an important victory for office cleaners and their families, but for our economy and our city,” said Hector Figueroa, Secretary-Treasurer of 32BJ. “In these tough times the workers who keep New York City’s corporate offices and landmark buildings clean and well maintained have stood up for the good middle class jobs our economy and our city needs.” […]
“I am happy with this agreement,” said Ivan Almendarez who is a cleaner at New York University. “Keeping my healthcare and getting wage increases will go a long way toward helping me raise my kids and take care of my ailing wife.”

There are so many levels of goodness to this victory. The owners of New York City’s biggest buildings didn’t get away with trying to mobilize public opinion against office cleaners for having the audacity to make $47,000 a year. They didn’t get away with making it more difficult for those workers to contribute to their union’s political mobilization. And those 22,000 workers will continue to have the health coverage they need and to get raises so they can continue to make ends meet.

This blog originally appeared in Daily Kos Labor on January 2, 2012. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos. She has a PhD in sociology from Princeton University and has taught at Dartmouth College. From 2008 to 2011, she was senior writer at Working America, the community affiliate of the AFL-CIO.


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