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Multiple union organizing efforts have been booming across the country, with thousands of workers at big-box, service industry companies like Starbucks, REI, and Apple taking historic first steps in forming unions as part of a broader worker empowerment movement sweeping the country.
This is fantastic news not just for workers but for the entire country. Our economy and country do better when workers do better. And workers do better when they are organized, which is a good reminder to politicians. Despite the recent passing of the Democrat-backed Inflation Reduction Act and the glimmer of hope it's given working Americans, some labor union members are concerned with what the upcoming midterm holds for those on the left side of the aisle. Voters nationwide have been questioning whether or not Democrats have the backbone to fight for workers amid misguided inflation narratives.
In spite of the proven profitability of organized, well-paid workforces, forming and joining unions in the U.S. has become progressively harder over the last few decades, thanks to years of legislative action (and strategic inaction) on the part of both Republicans and Democrats that have steadily weakened the rights of workers to collectively bargain and strengthen their political positions.
This has taken a toll on the American economy and widened the financial gap between corporations and their C-suite executives and the rest of the American workforce. In the '50s and '60s, when roughly one-third of the workforce belonged to a union, inequality was at its lowest point in American history and our country was powered by a strong and robust middle class. Meanwhile, today, a measly 10.3 percent of workers are in unions and inequality is higher than ever. What this has translated into is a situation where most American workers live paycheck to paycheck, can't afford basic necessities like groceries and rent, and fail to get ahead and build wealth for themselves and their families.
While corporations continue to peddle the idea that an organized workforce is dangerous to a company's success, those fears are misguided. Paying union workers more might hurt companies' and shareholders' bottom lines in the short term, but they are far more profitable in the long-term, as better-paid employees are more productive, more committed to their company's success, stay on the job longer, and themselves have more purchasing power as consumers of their employer's goods and services.
To understand this, just look at the difference between how UPS and FedEx have fared during the pandemic. UPS has a highly paid, union workforce and has reported strong numbers over the last two years. It beat earnings expectations last quarter, has had an on-time performance of about 95 percent and has not experienced any labor disruptions. In contrast, FedEx, whose workers are nonunion independent contractors and receive less pay than their UPS counterparts, has not done well over the course of the pandemic. On-time deliveries are at only 85 percent, and profits have been eaten up by the roughly $450 million in extra costs that the company has incurred because of labor shortages.
Support for labor unions is at a 50-year high, with one poll finding that no less than 68 percent of Americans approve of unions. They understand that when workers band together and collectively bargain for better wages, benefits, and working conditions, they naturally manage to get a bigger and fairer piece of the economic pie.
Democrats have thus far failed to use their total control of the House, Senate, and White House to pass progressive legislation that would protect and strengthen unions. To their credit, House Democrats managed to pass the Protecting the Right to Organize (PRO) Act. Unfortunately, Senate Democrats have failed to do the same, not because they oppose the legislation but because some stubbornly refuse to do away with the filibuster.
If Democrats want to improve their electoral chances ahead of the 2022 midterms, the solution is simple: advocate for working Americans and pass legislation that strengthens unions. It's popular among voters, and doing so will prove that they are on the side of brave workers at REI, Starbucks, and Apple—not their affluent campaign donors.
Drew Pomerance resides in Los Angeles and is the co-managing partner of a boutique business litigation firm. He has practiced as a trial and appellate lawyer for more than three decades. He is a proud member of the Patriotic Millionaires.
The views expressed in this article are the writer's own.
