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On Labor Day, there is a growing discussion about the ongoing conflict between corporations and workers, prompting the question, “Which side are you on?”
Having experienced both perspectives, as a third-generation union member, I understand the frustrations of many workers striving to improve their lives through union membership, only to meet fierce resistance from employers. However, my role as CEO of a thriving insurance and investment company within the union marketplace has shown me that employers and employees can indeed share common goals.
This synergy requires corporate America to accept, whether voluntarily or through legal imperatives, that businesses can prosper while still honoring the rights of their employees.
Across the country, millions of workers grapple with inadequate wages, insufficient benefits, and uncertain retirement futures. All the while, corporate profits continue to rise, alongside an average executive pay of $17.7 million annually. In this context, a majority of workers express a desire for union representation. Yet, the question looms: Are we allowed to organize? Will our employer support our efforts? This hesitance persists even though the legal right to unionize has been embedded in U.S. law for nearly 90 years. Many employers have found ways to manipulate this system.
Corporations expend nearly half a billion dollars each year on anti-union consultants to thwart workers’ organizations. Managers often hold mandatory one-on-one meetings to interrogate employees about their union sentiments. Alarmingly, about half of employers have been known to threaten job loss to workers advocating for a union, with nearly 20% of those threats being carried out. If workers do manage to overcome these obstacles and win the right to unionize, many employers deliberately delay negotiations for union contracts, diminishing workers’ faith and enthusiasm.
Nevertheless, there are uplifting stories of workers who have triumphed against the odds, and recent union election victories are on the rise. This momentum stems from workers seeking better pay—on average, 10% more—along with safer working conditions, secure retirement plans, and increased access to paid sick leave and employer-sponsored healthcare.
The connection between union strength and economic equality is noteworthy. Data shows that when union membership was at its peak, income inequality hit its lowest levels. This period also marked the emergence of a robust middle class and significant productivity growth for the national economy. From personal experience, having grown up in a union family in Tennessee, I can attest to the financial security that union membership provides.
My grandfather became part of a union in the 1950s during a time of remarkable growth in the labor movement, owing much to President Franklin Roosevelt’s support for the Wagner Act, which guaranteed workers the freedom to choose union representation. This legislation upheld the principle that corporations have obligations not only to shareholders but also to their employees. During this era, corporate America thrived alongside a strong labor movement. However, subsequent legal shifts at both federal and state levels have equipped employers with the tools to suppress organizing efforts and intimidate employees pursuing collective representation.
There is an urgent need for a new Wagner Act to address these issues. The PRO Act, which could justifiably be called the Restoring the American Dream Act, promises to outlaw many corporate tactics that hinder workers from forming unions. Such legislation would likely align with the majority of Americans’ desire for union representation in their workplaces.
Implementing such laws would also promote fair treatment of companies that respect workers’ choices, eliminating destructive competition and creating a more equitable market landscape. Adequate protections for union organizing could help alleviate the conditions affecting the 12 million children in the United States living in poverty. It might also rectify the troubling reality that one in four adults over 50 lack any retirement savings and address the increasing number of Americans forced to juggle multiple jobs just to survive. Addressing these issues requires a fundamental approach, and a crucial part of the solution lies in the word: union.
As it stands, many Americans feel that each day is dedicated to corporate interests, leaving only Labor Day to acknowledge the contributions of workers to the economy. On this Labor Day, it is vital for all stakeholders—companies that comply with regulations, a new diverse generation of workers seeking fair compensation, political candidates vying for their support, and anyone concerned about America’s future—to unite in the effort to restore workers’ freedoms to organize and improve their circumstances.
Source: Fortune