It’s been a big win for labor this fall. Alongside the UPS workers' new contract, the 148-day Writers Guild of America (WGA) strike ended. The Hollywood studios conceded to increase royalty payments and protect the writers’ work against AI, according to the almost ratified agreement.
Several other unions are still on strike, with SAG-AFTRA actively negotiating for a new agreement. For their part, the United Auto Workers is said to have reached a tentative deal with General Motors on Oct. 30, effectively ending the strike after the union settled with Ford Motors and Chrysler's owner Stellantis in the previous days, according to Reuters. These unions all want similar things as the writers: more money and more protections around infringing technology.
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Unions are the reason we have workplace benefits like two-day weekends and laws against child labor, says the United Food and Commercial Workers. But even with these current and historic wins, do the benefits outweigh the drawbacks of unions?
Why are there so many strikes?
Though it may seem like unions are infiltrating every workplace, only 10.1% of workers belong to unions, according to the Bureau of Labor Statistics’ (BLS) most recent estimates — which is half of the 1983 rate. And they're not increasing as you might assume — the BLS noted a 0.2% decrease in union membership in 2022 compared to 2021.
Even though union membership isn’t sky high, we saw the “summer of strikes” for several reasons, including corporations seeing record profits while wages remain stagnant and the cost of living continues to rise. And now, there’s the looming threat of AI replacing workers — something even Ray Dalio has warned his colleagues about.
With these economic shifts, Gallup reported 71% of Americans approve of labor unions — the highest percentage recorded since 1965. Even investing legend Warren Buffett counts himself among their supporters. On the other hand, many Americans are still skeptical or even opposed to unions, including Jeff Bezos and Elon Musk. So who's right?
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