Thanks to the efforts of billionaires, and other corrupt individuals, union workers have been portrayed as lazy and inept. If anything, the opposite is true. Workers in unions have different goals than business owners insofar that workers just want to earn a good living while owners want to extract profit from consumers. Young workers today have noticed that the profit motive has left behind has the cost of living increase and wages remain stagnant. This has forced many young workers to unionize, and that unionization push is starting where a lot of young people end up working: kitchens.
Public opinion has recently swung in the other direction. Just over 10 percent of Americans are in a union now, considerably less than the 34 percent in 1954. However, more than half of Americans now say they view unions favorably, a number that has risen from around 41 percent since the recession. If there’s a silver lining to the ongoing decline of unionization, it’s that now, “membership in unions has gotten so low that people don’t even have a negative view of unions anymore,” Rogers says. There’s less of the cultural baggage associated with being in one, the slate has been wiped clean. Many of the organizers I spoke to said they’d never been in a union before, and either had no idea what they were about until recently, or a positive impression based on a dictionary definition of a union as a group of people with common cause arguing for their rights.
Attacks on unions isn’t anything new, even when workers are asking for safer conditions or a little job security. What is new is that economists are starting to realize that we need stronger worker groups to advocate for labour or the economy as a whole suffers. Over the last few decades we’ve witnessed the rise of massive corporations that bully governments and workers; inevitably this process will gut the productive parts of planet (with fantastic short-term gains!). So, if we want our economy to do well for decades on end we need to ensure that all people involved in it get a share of the benefits.
A complementary approach would be to increase workers’ power. Historically, this has been most effectively done by bringing more workers into unions. Across advanced economies, wage inequality tends to rise as the share of workers who are members of unions declines. A new paper examining detailed, historical data from America makes the point especially well. Henry Farber, Daniel Herbst, Ilyana Kuziemko and Mr Naidu find that the premium earned by union members in America has held remarkably constant during the post-war period. But in the 1950s and 1960s the expansion of unions brought in less-skilled workers, squeezing the wage distribution and shrinking inequality. Unions are not the only way to boost worker power. More radical ideas like a universal basic income—a welfare payment made to everyone regardless of work status—or a jobs guarantee, which extends the right to a government job paying a decent wage to everyone, would shift power to workers and force firms to work harder to retain employees.
Since the late 1970s (coinciding with the rise of neoliberalism) wages have stagnated while executive pay keeps rising. This has led to inequality being one of the largest issues facing companies and countries in the 21st century. Accordingly, people sick of neoliberalism have been looking into ways to address inequality and the subsequent economic stagnation. One solution is to have workers sit on the board of their employer. This results in better treatment of the workforce while providing more opportunity for growth in efficiencies within the company.
Research has found that the setup reduces worker turnover, boosts salaries and productivity, and supports income equity. Shareholder returns do suffer slightly, but researchers largely agree that tilting the flow of revenue back toward workers is a good thing.
It stands to reason that the concept holds a great deal of sway over the American public. The gulf between CEO and shareholder earnings and that of employees is often as extreme as 25 to one. Wages for regular workers have held largely stagnant over the last three decades, as executive salaries have ballooned. Bringing actual employees to the table where these decisions are made could serve to flatten the cliff between management and workers.
2018 marked a minimum wage increase in Ontario which follows a trend throughout North America of raising the level minimum companies can pay workers. Large, heartless, corporations like Tim Hortons have released statements that they think paying people more is bad – they are wrong. It’s clearer than ever before: minimum wage increase have historically been good for the economy and people.
We have been raising the minimum wage for 78 years, and as a new study clearly reveals, 78 years of minimum-wage hikes have produced zero evidence of the “job-killing” consequences these headline writers want us to fear.
In a first-of-its-kind report, researchers at the National Employment Law Project pore over employment data from every federal increase since the minimum wage was first established, making “simple before-and-after comparisons of job-growth trends 12 months after each minimum-wage increase.”
What did the researchers find? The paper’s title says it all: “Raise Wages, Kill Jobs? Seven Decades of Historical Data Find No Correlation Between Minimum Wage Increases and Employment Levels.”
The results were clear. Of the nearly two dozen federal minimum-wage hikes since 1938, total year-over-year employment actually increased 68% of the time.
2017 has been anything but a successful year for unions. For a multitude of reasons unions have a bad reputation, although it’s thanks to unions that we have labour rights and weekends. Unions are really good at helping individuals deal with institutions that want to exploit their work; and history has proven this time and time again. So why all the hate to unions? It comes from boomers and earlier generations making unions the scapegoat for problems that unions didn’t cause in the first place. Now that inequality is on the rise the trend is reversing.
Vice recently published that unions are cool again and it might have to do with the fact that millennials are facing precarious employment with low wages. Yes, unions are good to fight inequality and we in North America should rethink how we talk about groups of workers uniting against exploitation.
Union members may have a good understanding of those values and the benefits they receive through collective bargaining, but what about those who aren’t in a union?
One piece of good news for unions is the striking disconnect between generations in how they are viewed—a poll in 2015 showed that 57 percent of millennials think of unions positively, versus only 41 percent of baby boomers. Maybe that’s because memories of unions as corrupt are finally fading. Maybe young people are more open to left-wing politics. Or, it could be that, in today’s era of income stagnation and freelance gigs replacing careers with benefits, millennials recognize that they may need to band together in order to secure a piece of the economic pie.