Union workers ‘are catching up' on pay as labor organizing surges

The latest data does not reflect recent deals between the United Auto Workers and Ford Motor Company, General Motors and Stellantis.

Union workers ‘are catching up' on pay as labor organizing surges

The compensation for union workers has increased by 11.5% in the U.S. since the first quarter 2020, while it is down 14.6% for the non-union workers.

This year, the rise in wages for unionized workers is partly due to significant labor actions.

Many unionized workers still have not negotiated a contract since the Covid-19 epidemic began.

Although predictions about employee wages are generally predicting slower wage growth in the coming year, one notable exception is union workers. This includes those who work in manufacturing and service roles.

There is a long road ahead. According to the report, compensation for union workers has increased by just 11% in the past quarter, while it is up 14.6% for non-union workers.

Bureau of Labor Statistics Data

From the second quarter 2023.

The gap between unionized employees and non-unionized workers has narrowed. This year, the rise in unionized employee pay growth is partly due to

significant labor action

There are a number of labor agreements that result in higher wages.

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Recent data is not reflected in the latest data


Between the United Auto Workers

Ford Motor Company


General Motors

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Some employees may receive wage increases of up to 25%. The UAW stated that Ford and Stellantis employees' top wages could be increased to more than 40 dollars an hour and their starting wage could increase by 68% to $28 per hour.

These pay increases may seem large, but collective bargaining agreements can be locked in for years because of contracting periods and restrictions on how workers are allowed to negotiate. For example, many unionized workers have not negotiated a contract since the Covid-19 epidemic began.

Aaron Terrazas is Glassdoor's Chief Economist. He said that unionized workers didn't experience the same wage increases as non-unionized employees over the last few years. They're now catching-up to a certain extent.

Experts day says that it's a good time to organize for workers who are unionized as they begin new contracting periods.

Julia Pollak is chief economist for ZipRecruiter. She said that although the gap between unionized and non-unionized workers is closing, there is still a higher rate of wage growth for unionized workers.

By the end of October, this year approximately 453,000 workers had participated in a total 312

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The number of strikes in the last two years has increased significantly compared to the 180 strike actions that took place involving 43 700 workers.

Johnnie Kallas is a Ph.D. student at Cornell University’s School of Industrial and Labor Relations and the Project Director of the ILR Labor Action Tracker.

The union jobs are less vulnerable to underpayment, but still pay less.

Terrazas stated that union workers' wages are generally less susceptible to the booms and busts of the labor market than non-unionized workers.

Cory Stahle, an economist at Indeed, explained that "the end result is the strike seems to be picking up as wages are sort of going down."

LaCinda Glaver, a senior principal at Mercer said that she didn't expect to see significant increases in compensation for tech and health care. Both sectors are facing layoffs or increased financial pressures due to the pandemic.

She said, "They've invested so much compensation in the last few year that it isn't sustainable."

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