July witnessed a surge in strikes, making it one of the busiest months for labor unrest in three decades. This trend reflects a growing support for unions and an increase in worker leverage during a time of low unemployment. Tens of thousands of workers across various industries have been demanding higher wages to keep up with high inflation.
The ongoing strikes in Hollywood, with actors and screenwriters uniting on picket lines, are just one example of workers joining forces to demand more from their employers. Baristas, national park bus drivers, hotel housekeepers, lawyers, book sellers, locomotive plant workers, sour cream producers, and brewery workers also participated in strikes in July.
In addition, 150,000 autoworkers at the Big Three Detroit automakers have threatened to strike in mid-September if their demands, including double-digit pay increases, are not met. Moreover, just last week, a massive strike by 340,000 UPS workers was narrowly avoided through a tentative agreement that resulted in significant wage gains.
Public support for unions has been on the rise since the Great Recession and has further increased during the pandemic. According to a Gallup survey, 71 percent of Americans approve of unions, the highest level since 1965. Additionally, a poll by The Washington Post and Ipsos found that half of workers in nonunion positions would support the formation of a union in their workplace. The current tight labor market, with historically low unemployment rates, has given workers more power to strike, especially as wages have not kept pace with rising inflation.
This summer’s labor unrest can be attributed to a difference in perception between workers and employers, according to Thomas Kochan, a professor of industrial relations at MIT. Workers and union members are seeking to recover their lost income due to high inflation, while employers are being conservative in anticipation of a possible recession.
The number of strikes in 2023 has already reached 323,000 workers, making it the busiest year for strikes since 2000. The pandemic shutdowns led to employers competing for workers, resulting in low unemployment rates and a rise in wages. However, these wage gains were offset by soaring inflation, except for those at the lowest end of the pay scale. Recently, higher wages have begun to outpace inflation, offering some relief to workers. In June, average hourly wages rose at a 4.4 percent annual rate to $33.58 per hour.
Despite these wage increases, workers continue to struggle financially, as their companies reap huge profits. In the Hollywood strikes, for example, actors and screenwriters have seen their residuals decline due to changes in the industry. The transition from cable TV to streaming services has led to a new compensation model based on subscriber numbers, rather than view counts, resulting in lower pay for union members.
Negotiations between the United Auto Workers and Detroit automakers have also become tense, with wages and compensation being crucial factors. The UAW’s president has warned of strikes if progress is not made at the bargaining table. The automotive sector plays a vital role in the U.S. economy, and any extended strike would pose risks to the wider economy.
In conclusion, the surge in strikes reflects the increasing support for unions and the changing dynamics in the labor market. Workers are demanding higher wages to combat inflation and bridge the gap between their incomes and their employers’ profits. The ongoing labor unrest is a manifestation of the discrepancy in perception between workers and employers, as well as the power that workers have acquired in a tight labor market.
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