DStv Channel 403 Thursday, 05 December 2024

Tight job market rebalances power in US

WASHINGTON - The US economy is contending with a wave of union activism unseen in decades as organized labor seizes a rare opportunity to play hardball in a tight employment market.

Sectors experiencing unrest include automobiles, health care, restaurants, defense, airlines, technology and the performing arts. 

In some cases, employees have threatened to walk out, but didn't actually strike.

"Workers haven't had much leverage for decades, and certainly not in the aftermath of the 2008-2008 recession," said Susan Schurman, professor of labor relations at Rutgers University.

Schurman considers the current dynamic the most advantageous for unions since the 1930s, a rupture from a long period in which employers had the upper hand.

"Wages have been stagnant for decades," Schurman said. "The pandemic changed all that," with the low unemployment bolstering worker leverage.

Such a backdrop has given momentum to organizing campaigns at more companies, although establishing a union shop remains difficult. 

In some cases such as Starbucks and Amazon, workers have voted in favor of representation, but struggled to seal a contract with the employer.

The activism can feed on itself as workers in different sectors observe each other fighting for more, sometime spurring concessions from employers who are trying to stay union-free, said Schurman.

This can mean higher wages, better working conditions, increased job security or other conditions.

Higher consumer prices have been another catalyst for workers, adding credibility to workers claims that they need higher pay just to break even.

Data released this week showed a 3.7 percent increase over September 2022, down from the 9.1 percent surge in June 2022.

The Federal Reserve has raised interest rates 11 times since March 2022 in an effort to return inflation to a two percent target. 

In August the United States lost 4.1 million days of work due to strikes, the highest level in 23 years, according to the Labor Department.

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