Unionization: Not Just for the Big Companies
Unionization was a hot news topic in 2022. Workers in well known companies like Amazon, Starbucks and Trader Joe’s were organizing and there was speculation that we were going to see a boom in union growth. The numbers, however, seem to be telling a different story as union participation continues to go down. So what is going on with unionization, and how can your business avoid being a target for organizing?
Unions are more popular than ever, but participation is not growing.
In 2022 there was a 53% increase in the number of union representation petitions filed over 2021, but the percentage of US workers in a union actually went down by .2%. Economists theorize that high barriers and a shift from manufacturing to service industries are contributing to the decline.(1)
Tech layoffs are driving workers to sign up with unions
Labor experts think that layoffs at tech giants like Microsoft and Amazon might have given labor organizers the perfect moment to get tech workers to unionize. High wages and generous benefits kept tech workers from seeking unionization in the past, but the bubble may have burst. Employees will be asking more from their employers.
There are still major barriers to any large scale unionization in tech. Traditional models of organizing are not a good fit for tech, and the labor market is tight so retaliation is a real fear. Several hundred Google workers signed on as members of the Alphabet Workers Union in the wake of recent layoffs, but large scale collective action has yet to be seen as in other industries like aviation and construction.
Unionization is not limited to large companies
2022 saw unionization efforts at many small businesses and startups including Seattle based Ridwell, New York based Resilience Lab, and Brooklyn based Square Roots.
Certain industries are seeing more activity than others
Retail organizers are winning more union elections than they have in decades, and it is largely due to the cannabis industry. Cannabis workers accounted for over 60% of the gains in retail unionization in 2019 and 2020.(2) Organizers say they are pushing for higher wages and more consistent scheduling for workers.
Avoiding unionization is largely up to leadership and structure
Wherever you stand on the unionization debate, the fact is that labor organization attempts are the result of employee frustration. Responding to organization attempts in a combative way can cause lasting damage to your brand and relationships so it is important to set pride aside. At Swift HR Solutions we have helped leaders through votes that went for unionization, and those that went against. We have seen the difference leadership can make. When management communicates effectively, builds relationships, and hires the right people for top roles, they can make sure employees want to keep their direct line of communication open.
Instead of simply worrying about unionization, organizations need to take steps to make sure their employees feel heard and valued. Senior HR Consultant William Wiggins believes companies must be proactive instead of reactive.
“I’ve seen companies go through union avoidance training when their business would benefit more from added one-on-ones, engagement and satisfaction surveys, and salary studies to make sure employees are satisfied with their working conditions.” William says.
Build trust with your employees
At Swift HR Solutions we have seen companies avoid unionization because they built strong relationships, kept good lines of communication open, and viewed HR as a strategic partner rather than just an administrative role. The leaders at these companies do several important things:
Stay open and transparent with their team
Empower their team by providing resources to succeed
Request and listen to feedback from their employees regularly
Demonstrate their company culture and lead by example
Senior Consultant Beth Hrdlicka was engaged by a Client after they received a unionization letter.
“The way to avoid unionization is, don’t give your employees a need for a third party representative to negotiate on their behalf. If you have good managers with close relationships who are proactive, paying fairly and giving employees an outlet to voice their concerns, your employees will want to keep those direct relationships.” said Beth. “In one particular situation the owners had great relationships with their employees. They were willing to directly address each of their concerns openly in all-company staff meetings and make real-time changes on compensation, schedules and benefits. With the need for union representation alleviated, we were able to get the union to pull the vote because the support was not there.”
Carefully choose and coach those who will communicate with employees
Do not underestimate the impact of communication. When you have to deliver tough news or a big change, your team will have questions. How you answer those questions is vital to having your team feel like you are looking out for them. Any leader dealing with employees during an organization push also needs to understand what is and is not allowed under US labor laws.
Swift HR Consultants are often brought in by leaders so that their employees have someone to come to that isn’t the CEO. Your workers need someone they feel comfortable bringing questions and grievances to that isn’t the same person in charge of their entire career.
Not sure when is the right time to bring HR into your business? Let’s talk.