This week’s Human Resource Management class assignment is to find an article that deals with a subject we’re currently studying and write a small summary on it. Well, surfing the net, I found an article on the Economic Policy Institutes’s website about Unions. I thought it might be of interest and I thought I’d pass along some of the information I learned. The article was written in August of 2003.
Did you know:
• Unions raise wages of unionized workers by roughly 20% and raise compensation, including both wages and benefits, by about 28%.
• Unions reduce wage inequality because they raise wages more for low- and middle-wage workers than for higher-wage workers, more for blue-collar than for white-collar workers, and more for workers who do not have a college degree.
• Strong unions set a pay standard that nonunion employers follow. For example, a high school graduate whose workplace is not unionized but whose industry is 25% unionized is paid 5% more than similar workers in less unionized industries.
• The impact of unions on total nonunion wages is almost as large as the impact on total union wages.
• The most sweeping advantage for unionized workers is in fringe benefits. Unionized workers are more likely than their non unionized counterparts to receive paid leave, are approximately 18% to 28% more likely to have employer-provided health insurance, and are 23% to 54% more likely to be in employer-provided pension plans.
• Unionized workers receive more generous health benefits than non unionized workers. They also pay 18% lower health care deductibles and a smaller share of the costs for family coverage. In retirement, unionized workers are 24% more likely to be covered by health insurance paid for by their employer.
• Unionized workers receive better pension plans. Not only are they more likely to have a guaranteed benefit in retirement, their employers contribute 28% more toward pensions.
• Unionized workers receive 26% more vacation time and 14% more total paid leave (vacations and holidays).
Since unions seem to get a bad rap these days, I thought I’d pass along just some of the positives.