In the early decades of the twentieth century, the union movement largely defined the work lives of American employees. The impacts of unions were substantial and wide-ranging, instituting safety protections, the 40-hour work week, and prohibitions on child labor. But trends in wider society in the latter half of the century encouraged the growth of larger companies, especially in the retail sector, which in turn worked to consolidate their power over both their suppliers and their employees. The sway of the unions started to fade, and today, less than 5 percent of retail workers are union members.
But tides might be turning again, due to recent societal shifts that suggest the potential for workers to unionize to their benefit. First, the disruptions created by the COVID-19 pandemic have prompted many retail workers to consider alternative options. Retail jobs are tough, and if retailers want to keep their staff, they might be forced to accept the demands that unions promote, such as steady schedules and higher minimum wages. If workers recognize their ability to issue such demands, and further recognize that unions can help solidify the requests in a way that is effective and influential, they might be more willing to join.
Second, recently conducted research has established that even now, when so few people are union members, those retail workers earn higher wages on average than non-unionized workers. They also are assigned more stable schedules and more hours, rather than the part-time and unpredictable assignments that many retail workers face. Policy makers in turn might come to acknowledge the benefits of unions for their constituents. Pushing big businesses to allow union activity (as they are legally required to do anyway) could offer a popular platform, especially for politicians in economically depressed regions, where employment and wage rates limit the development and health of local communities.
Third, recent grassroots unionizing attempts by workers at an Amazon plant in Alabama, though unsuccessful, brought the topic to light and received substantial media attention. When the vote failed, observers alleged that the management of the Amazon plant had engaged in illegitimate, unethical influence attempts, such as overstating the costs of a union membership, understating the potential economic benefits to workers, and implicitly and illegally threatening to fire people who unionized or to close the plant altogether.
Fourth, in a related move, the International Brotherhood of Teamsters, one of the most powerful remaining unions in the United States, has expressed its plans to target Amazon and other large retailers to insist that they allow delivery and freight workers to join its ranks. The Teamsters believe that by appealing to drivers across the country, it can achieve more success at a national level, compared with the single-plant initiative. Such success then would enable it to insist that retailers adopt limits on the hours drivers must work, for example.
At Amazon, Walmart, and Target, three of the biggest U.S. employers, no workers are unionized. Although all three of them recently have raised wages, in response to pressures from workers and policy makers, they actively resist further pressures. They argue that labor unions increase costs and undermine effective hiring practices, meaning that the costs for consumers go up too. But if history is any indicator, the current trends might lead workers to insist on exercising their right to unionize.
Discussion Questions:
- Who are the key stakeholders in the debate over unionizing retail workers, and what are their positions on this issue?
- On balance, have unions been helpful or harmful to U.S. labor?
Source: Richa Naidu, “Retail Workers in Unions Reap Higher Wages Even as U.S. Organizers Suffer Setbacks,” Reuters, July 9, 2021; Noam Scheiber, “The Teamsters Consider a New Emphasis on Organizing Amazon Workers,” The New York Times, June 22, 2021; Stacy Mitchell, “There’s a New Duo that Could Help Rein in Amazon,” The New York Times, June 17, 2021.