The fall (and rise?) of unions in the US

The video opens with a personal anecdote and a question from a subscriber about the decline of unions in the U.S. and why manufacturing unions didn't transition into the service sector. It highlights the current low union membership rate, around 10% overall and 6% excluding government employees, while also noting recent momentum in unionization efforts, particularly at Starbucks.

The decline in union density is not unique to the U.S. but is also observed in other countries. This trend is attributed to globalization and automation shifting job growth from unionized manufacturing industries to less-unionized service sectors. The U.S. economy grew significantly outside of traditional union strongholds, with a new paper estimating that 40% of the decline in union elections is due to this sectoral shift.

A comparison with Canada reveals that U.S. union density peaked in the 1950s. Historian Nelson Lichtenstein explains that unions in the post-WWII era enjoyed a period of complacency, negotiating good wages during an economic boom, mainly for white male manufacturing workers. This led to a lack of organization in emerging sectors and among women workers.

The 1970s brought economic challenges like inflation and unemployment, leading employers to launch an anti-union assault. This included moving factories to the South, hiring anti-union consultants, and permanently replacing striking workers. Ronald Reagan's firing of 11,000 striking air traffic controllers in 1981 became a pivotal moment, signaling federal support for union busting.

The U.S. legal process for unionization involves a petition, potential employer recognition, or a secret ballot election, followed by collective bargaining. However, employers are not obligated to agree on a contract, leading to lengthy negotiations. Sociologist Barry Eidlin highlights significant differences with Canada, where negotiations are referred to an arbitrator if a contract isn't reached within a year, creating different incentives. The U.S. process allows for significant delays and employer interference.

The video includes a personal story from a former manager about aggressive anti-union tactics, including the monitoring and firing of a worker suspected of organizing. The narrator explains that if employers are caught retaliating in the U.S., the penalties are minimal (reinstatement and back pay minus other earnings), making it a low-risk strategy for employers to deter unionization and remove key organizers.

Despite the decline, public approval of unions is at its highest since the 1960s, and a 2017 survey found that 48% of non-union workers would vote for a union. The pandemic and low unemployment rates are seen as catalysts for a potential resurgence in union activity. Increased union visibility and successes are changing workers' perceptions, making unionization seem like a more realistic and achievable goal, potentially reversing the long-term decline.