The Union Difference
This Labor Day it’s worth celebrating that 7 out of 10 Americans support labor unions. This marks the highest public approval rating since 1965, almost on par with the popularity of hot dogs as a staple at Labor Day barbecues. As summer winds down and we enjoy our last juicy Palisade peaches, it’s an opportune moment to recognize the wide-ranging advantages that labor unions offer Colorado’s working families, our state’s economy, our democracy, and the brighter future possible for our state if more Coloradans had the ability to unionize.
While growing enthusiasm for unions reflects broad public awareness that collective bargaining is key to improving wages and workplace safety, it remains far too difficult for most workers who want to come together to form a union under current U.S. and Colorado laws. Weak, outdated labor laws and decades of fierce anti-union attacks from big business have taken a toll on unions and left our economy increasingly off balance. Between 1973 and 2007, the reduction in private sector union membership (dropping from 34% to 8% for men and from 16% to 6% for women) coincided with a more than 40% increase in wage inequality. Research shows this is not a mere coincidence; shrinking union density accounts for much of the increase in income inequality.
Increased union membership yields a positive “net fiscal impact” through two mechanisms: reduced reliance on public benefits, and more tax dollars due to more income. It would also help reverse growing inequality and make the most of our constrained General Fund budget.
Ensuring better access to unions is key to transforming Colorado into a state where everyone, regardless of their race or background, can prosper. Working-class union households have a median wealth of $201,240, nearly four times greater ($201,240) than nonunion counterparts ($52,221), and union membership also raises the likelihood of families owning a home. While all union households benefit, Black and Latino/a families in Colorado experience even greater advantages, contributing to the reduction of racial and ethnic wealth gaps statewide.
Research tells us that unions help boost average earnings and household income not just for union members, but working families across our economy. On average, a worker covered by a union contract earns 10.2% more in wages than workers in the same industry with the same education, job title, and experience. But unions also raise the bar for entire industries, meaning non-union Coloradans would benefit from increasing unionization, too. And without a strong union presence, a race to the bottom has too often become the norm. Had union density remained at its 1979 level nationally, weekly wages of nonunion, private-sector male workers would be 5% higher, and 8% higher for nonunion workers without a college education.
Workers in areas with higher union density fare better during economic downturns; the U.S. Treasury points out that unionization reduces inequality and helps promote economic resilience for all working families and Colorado as a whole, by reducing the financial fragility of households with the bottom 95% of incomes. Unionization helps us build more equity into our economy at baseline, which serves as a natural automatic stabilizer.
While the economic advantages are significant, it’s important to recognize the additional civic engagement benefits of unions, especially during election seasons. Workers are involved in the union’s democratic processes, so voting comes naturally; union members are 3-5% more likely to participate in voting. Another analysis revealed that a 1% rise in union density correlated with a 9.8% increase in the number of ballot drop boxes per person.
Research shows that relative to non-union workers, unionized workers are almost two-thirds more likely to have employment-provided health insurance and retirement benefits because they have the bargaining power necessary to negotiate the benefits they need to care for their families. With about a third of our state budget allocated to Medicaid, more employees accessing essential benefits through their jobs would free up General Fund resources to drive economic progress instead of compensating for low-wage employers who boost their profits by refusing to provide basic benefits. There’s clear evidence demonstrating that allowing low-wage workers a seat at the bargaining table to win benefits would reduce the cost of state safety net programs.
While TABOR limits how much of our tax revenue could be invested back into Colorado by the legislature, the long-term implications of passing policies to boost worker’s power to unionize are clear; this is a smart policy choice to boost income for middle and working-class Coloradans and reduce reliance on public assistance. This Labor Day, remember that unions can help a Colorado economy that works for all of us.
