- There is a lot of union activity happening right now and businesses are starting to notice.
- UBS stated in a note that it was “too early” to declare pro-unionization a trend.
- While a business recession is unlikely, Amazon and Starbucks are showing signs of life.
Business leaders are noticing the growing union movement.
Lloyd Walmsley, a UBS researcher, wrote a Thursday note describing the state and future prospects of the labor market. He called it “an environment unlike any other for decades.”
While UBS says it’s “too early to declare pro unionization a trend,” the note follows high-profile wins at a Staten Island Amazon warehouse, and Minimum fourStarbucks locations where employees are unanimously Winning Votes to unionize.
Although union membership was still low in 2021, pro-union sentiment was at its highest level since 1965, per Gallup polling. UBS listed three reasons why this new labor environment is important.
The first is a shortage of labor. The country still has 1.6 million jobs below the February 2020 levels despite economic recovery from the pandemic slump. Bureau of Labor Statistics. Some workers may not return or wait until the conditions are right for them to come back.
UBS also notes that the country is run by a pro-union administration. President Joe Biden said that he Intents“To be the most prounion President and lead the most prounion administration in American history.” Already, the Biden Administration has established a task force to strengthen union membership and organize, and Biden has spoken in support of organizing workers.
UBS also noted that workers are more willing to walk out of their jobs and leave, “emboldening workers less concerned about losing their jobs.” Over 4 million workers have quit their jobs every month for nine consecutive months.
UBS says that there are still limitations on unions and that businesses could be affected by them.
UBS reports that “Unions lack resources and infrastructure to combat” large corporations. As Axios reportedOn Thursday, advocates expressed concern that long-standing labor organizations such as “Big Labor” aren’t advancing at the moment’s swelling moment.
Companies “may dragout negotiations until workers are unhappy with the lackluster progress.” They stated that Starbucks may employ this strategy, and that 5-10 times more stores would need to unionize to achieve a “critical mass” in direct negotiating power. Despite this, there is “momentum” in the organizing drive.
Amazon would need to unify more than 100 fulfillment centers before they can see a “dent,” though UBS “doesn’t believe this will be the last fulfillment centre to unify.”
Amazon Labor Union he saidOver 100 warehouses across the nation “have contacted Amazon Labor Union and are ready to unite their sites.”
