{"id":2550,"date":"2021-07-20T06:00:00","date_gmt":"2021-07-20T06:00:00","guid":{"rendered":"https:\/\/www.uniontrack.com\/blog\/?p=2550"},"modified":"2021-08-30T20:58:21","modified_gmt":"2021-08-30T20:58:21","slug":"wage-crisis","status":"publish","type":"post","link":"https:\/\/uniontrack.com\/blog\/wage-crisis","title":{"rendered":"Labor in the News: How Unions Can Push Back Against The Ongoing Wage Crisis"},"content":{"rendered":"\n

Ken Green
CEO & Founder
UnionTrack<\/a><\/p>\n\n\n\n

The biggest news story about the labor market right now is the shortage of workers returning to fill jobs as the economy opens back up from the pandemic shutdowns. <\/p>\n\n\n\n

The media narrative is focused on the perception that workers aren\u2019t going back to work because they are collecting more in unemployment than they would at their job. Proponents of this argument say that unemployment insurance (UI) benefits are incentivizing people to stay home instead of going back to work, thus creating a labor shortage.<\/p>\n\n\n\n

It is a skewed account that covers the real truth \u2014 there is a wage crisis in the U.S.<\/p>\n\n\n\n

It\u2019s true that there are millions of job openings going unfilled. But there isn\u2019t actually a labor shortage in the U.S. Workers simply want to earn a fair wage at work. \u201cIndustries that relied on cheap labor before the pandemic are finding it harder to do so for many reasons, from ongoing pandemic fears, to unsatisfactory wages, to better opportunities in other industries,\u201d writes Tim Fernholz<\/a>, senior reporter at Quartz.<\/p>\n\n\n\n

Instead of addressing these issues, particularly the low wage crisis, businesses and anti-labor interests have made elevated pandemic benefits the scapegoat for wage stagnation. <\/p>\n\n\n\n

The Real Issue is Low Wages, Not a Labor Shortage<\/h2>\n\n\n\n

\u201cWhat has rapidly become conventional wisdom is not necessarily wisdom at all,\u201d writes Annie Lowrey<\/a>, staff writer covering economic policy at The Atlantic, in reference to the idea that unemployment insurance is the cause of workers not returning to work.<\/p>\n\n\n\n

A true labor shortage occurs in tight labor markets where there is a lack of available workers to fill open positions. In these circumstances, employers will often raise wages to entice workers and stay competitive in the labor market.<\/p>\n\n\n\n

That is not what is happening right now. <\/p>\n\n\n\n

Businesses are experiencing a labor shortage because of how much they are willing to pay workers, explains Heidi Shierholz<\/a>, senior economist and director of policy at the Economic Policy Institute (EPI). \u201cEmployers post their too-low wages, can\u2019t find workers to fill jobs at that pay level, and claim they\u2019re facing a labor shortage,\u201d she asserts. <\/p>\n\n\n\n

The truth is workers are simply standing up for themselves and the right to earn fair wages. <\/p>\n\n\n\n

As Lowery explains, workers aren\u2019t going to take jobs making less than they were before the pandemic, nor are they going to go do a more dangerous job for the same hourly wage. Those expecting higher-paying jobs to be available in the near future also aren\u2019t going to take a job paying less than they expect to be able to make soon. <\/p>\n\n\n\n

\u201cYet many employers are dragging their feet in raising wages to make their job offerings worth taking,\u201d she writes. <\/p>\n\n\n\n

Scott Heide, who is unemployed, tells Business Insider reporters Juliana Kaplan and Ben Winck<\/a>, that unemployment benefits may be a contributing factor to people staying out of the workforce, but not because it\u2019s making them lazy. It all comes down to money. \u201cEverybody should get a living wage,\u201d Heide says, and \u201cif employers paid their employees a living wage, that would make a huge difference.\u201d<\/p>\n\n\n\n

How to address this issue of a \u201crace to the bottom\u201d in wages is becoming a key talking point among pro-worker advocates. Labor unions are positioned to lead the conversation and bring about real wage growth. <\/p>\n\n\n\n

\u201cUnions are crucial in raising wages for working people,\u201d write Celine McNicholas, Lynn Rhinehart, Margaret Poydock, Heidi Shierholz, and Daniel Perez<\/a> at EPI in a report on why unions are good for workers in a crisis. To combat the wage crisis coming out of the pandemic, unions should be capitalizing on the momentum of worker actions to increase memberships, collectively bargaining for higher wages for all workers, and lobbying pro-worker lawmakers to stand up to anti-worker interests. <\/p>\n\n\n\n

\"Smiling<\/figure>\n\n\n\n

Higher Membership Means Greater Union Strength<\/h2>\n\n\n\n

Through collective bargaining, union workers earn more than nonunion workers. However, a steady decline in union membership has led to fewer union contracts and, therefore, stagnant wages.<\/p>\n\n\n\n

\u201cA major factor depressing wage growth for middle earners and driving the growth of wage inequality over the last four decades has been the erosion of collective bargaining,\u201d writes Lawrence Mishel<\/a>, distinguished fellow at EPI. The first step in combating stagnant or decreasing wages is to increase the number of workers in unions so more workers secure collective bargaining agreements. <\/p>\n\n\n\n

The stronger unions are, the more power they have in bargaining for better wages. \u201cStronger union membership must be a pillar of our nation\u2019s recovery plan,\u201d writes Leo Hindery, Jr<\/a>., chairman and CEO of Trine Acquisition Corp. \u201cWhen unions are strong, America is strong: Unions boost wages of both union and non-union workers.\u201d<\/p>\n\n\n\n

It\u2019s the right time for unions to focus on growth as more Americans support unions now than they have in the past couple of decades. According to a Gallup<\/a> poll from 2020, 65 percent of Americans approve of labor unions. That is the highest approval rating since 2003, with support having dipped to its lowest at 48 percent in 2009. <\/p>\n\n\n\n

\u201cNow, unions are at an all-time high when it comes to favorability ratings,\u201d Richard Trumka<\/a>, president of The American Federation of Labor and Congress of Industrial Organizations, said in early 2021. \u201cHalf the workforce said they would join a union today if given the opportunity because they know that without the power of a union, workers are helpless.\u201d<\/p>\n\n\n\n

Unions need to take advantage of the pro-union sentiment and focus on helping workers organize.<\/p>\n\n\n\n

\"smiling<\/figure>\n\n\n\n

Unions Bargain for Higher Wages<\/h2>\n\n\n\n

An increase in membership numbers will give unions greater bargaining power at more work sites and across more sectors of the economy. Through negotiations, unions can ensure workers earn a fair wage at work. <\/p>\n\n\n\n

According to a report by The Washington Center for Equitable Growth<\/a> on how unions restore workers\u2019 bargaining power, \u201cthe decades-long decline in union density has limited workers\u2019 ability to push back against what economists call monopsony power: firms\u2019 ability to use their market power to dictate and suppress earnings. Unions can counteract monopsony power by limiting firms\u2019 ability to extract \u2018rents\u2019 from workers, where rents are defined as employers\u2019 capacity to pay workers less than the value of what they produce.\u201d<\/p>\n\n\n\n

That is accomplished primarily through collective bargaining. <\/p>\n\n\n\n

However, according to data from the U.S. Bureau of Labor Statistics<\/a>, about 12 percent of workers are covered by a collective bargaining agreement. Increasing membership numbers will give unions the power to increase the number of workers covered by contracts. <\/p>\n\n\n\n

And while negotiating with individual employers is the primary driver for workplace improvement, some unions are also embracing sectoral bargaining to secure higher wages for more workers across entire industries. <\/p>\n\n\n\n

\u201cA modernized labor system requires both sectoral bargaining and workplace-level bargaining,\u201d write David Madland and Malkie Wall<\/a> at the Center for American Progress. \u201cSectoral bargaining helps to set compensation floors that cover most workers, while worksite-level unions are better at addressing workplace-specific issues.\u201d <\/p>\n\n\n\n

It\u2019s through these negotiations that unions can help solve the wage crisis by fighting for better pay for both union and nonunion workers.<\/p>\n\n\n\n

Unions Lobby Lawmakers to Stand up to Big Business<\/h2>\n\n\n\n

Businesses and anti-worker interests are in control of the narrative surrounding the labor shortage. \u201cEmployers\u2019 associations and conservative groups have been seizing on the jobs numbers to campaign for the rollback of benefits in order to force workers back to work,\u201d thus ensuring they control the wages, says Joseph McCartin<\/a>, professor of history and executive director of the Kalmanovitz Initiative for Labor and the Working Poor at Georgetown University.<\/p>\n\n\n\n

The fact that it is the prevailing frame being used by the media is detrimental to workers in the court of public opinion and may lead to erosion of the public\u2019s support of unions. It\u2019s also the argument being used by many businesses of all sizes to suppress worker pay.<\/p>\n\n\n\n

Labor leaders need to lobby pro-worker lawmakers to stand up to big business and change the perception from labor shortage to wage crisis. They need to rally together with pro-labor advocates to ensure the facts about the suppression of worker wages becomes the key talking points around the issue of workers returning to the workplace. <\/p>\n\n\n\n

As union leaders work to keep wages from bottoming out during the economic recovery, a tool like UnionTrack ENGAGE<\/a> can help them share facts about the issue with members and insights into what they are doing to protect workers during this wage crisis.\u00a0<\/p>\n\n\n\n

Images by: luckybusiness\/\u00a9123RF.com, Kai Chiang\/\u00a9123RF.com, Andriy Popov\/\u00a9123RF.com<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

Workers are hesitant to return to work when they don\u2019t earn enough to live on. They need unions to protect them from ever-shrinking wages.<\/p>\n","protected":false},"author":3,"featured_media":2553,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[9],"tags":[],"class_list":["post-2550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uniontrack-blog"],"yoast_head":"\r\nHow Unions Can Push Back Against The Wage Crisis - UnionTrack\u00ae<\/title>\r\n<meta name=\"description\" content=\"Workers are hesitant to return to work when they don\u2019t earn enough to live on. 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