Strong Unions Promote Economic Justice for Workers of Color, Women, and Frontline Workers

In this second brief of Colorado Fiscal Institute’s (CFI)’s series on unions and workers rights in Colorado, we focus on how passing the Worker Protection Act (WPA) SB25-005 can elevate the status and wellbeing of Coloradans who are too often neglected and not given the same opportunities for advancement and protection: workers of color, women, and those employed in low-wage occupations. Structural barriers such as occupational segregation and wage discrimination disproportionately impact these historically excluded workers, especially those who have multiple marginalized identities. Strengthening labor protections can help address systemic inequalities, as unions have been shown to reduce racial and gender wage and wealth gaps. Unions use collective bargaining to secure higher wages for workers, establishing a “union wage premium” that especially benefits historically marginalized groups, such as people of color and women.

Our review of existing literature explores how union density impacts wage disparities by race, ethnicity, and gender. Due to the multiple barriers women of color face, including the largest wage gaps, they stand to benefit the most from the wage equity that unionization brings in Colorado.

We also examined evidence on the potential of unions to reduce racial wealth gaps and boost wages in key sectors that could address labor shortages among frontline service workers in high-demand, low-wage industries. 

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In CFI’s first brief, we focused on explaining how Colorado’s anti-worker, modified “right to work” law hinders workers’ ability to form and maintain unions and prevents widespread, equitable economic growth. Colorado’s current union security law mandating a second, 75% supermajority election win hinders union density. Lower union density contributes to increased income inequality, negatively impacting all Colorado workers and disproportionately affecting workers of color. 

States with pro-worker labor policies that support union security agreements tend to have higher union density, translating to significant economic, democratic, and health benefits for all workers.