Additional Coverage:
- Most American workers want a union—and it may be the only way to save the middle class (newsbreak.com)
On Labor Day, the ongoing tension between big business and employees sparks the question: “Which side do you support?”
From personal experience, I’ve been on both sides of the spectrum. Coming from a family with a history of union membership, I understand the frustration workers feel when they attempt to better their conditions through unions, only to be met with resistance from unsupportive employers. However, my insights as the CEO of an insurance and investment company catering to the union sector have shown me that it’s possible for employers and employees to work toward mutual goals.
But achieving such harmony requires a shift in the mindset of corporate America—either willingly or through necessary legal reforms—to recognize that it’s feasible to prosper and satisfy shareholders while also respecting employees’ rights.
Today, numerous workers face the burdens of low pay, minimal benefits, and uncertain futures, even as corporate profits and executive salaries, averaging around $17.7 million annually, continue to climb. Despite a legal backdrop that has supported union rights for nearly 89 decades, many employees contemplating unionization still fear employer retaliation.
Businesses are known to invest as much as half a billion dollars annually on consultants specialized in breaking up union organizing. Management practices include forcing employees into interrogative one-on-one meetings to sniff out union supporters, with a significant number threatening job security and some even acting on these threats. When employees overcome these obstacles and secure a union, companies often drag their feet in negotiating terms, leading to disillusionment among the workforce.
Despite such challenges, there’s a rise in union victories, driven by employees’ desire for better pay, safer working conditions, and more reliable benefits. The historical correlation is clear—higher unionization rates have coincided with lower income inequality, a more robust middle class, and significant productivity enhancements in the U.S. economy.
My family’s history is intertwined with the labor movement, beginning with my grandfather who joined a union in the 1950s, a period fueled by President Franklin Roosevelt’s enactment of the Wagner Act. This legislation supported workers’ rights to unionize, proposing that corporations should balance the interests of shareholders with those of their employees. However, subsequent legal modifications have tipped the balance in favor of employers, hindering union efforts.
The pressing need for a modern equivalent of the Wagner Act is embodied in the proposed PRO Act, potentially dubbed the Restoring the American Dream Act. This legislation aims to eliminate many of the corporate practices that block union formation, likely aligning with the majority of American workers who favor unionized workplaces.
Such a law would not only empower workers but also foster an environment where companies valuing employee freedoms could thrive. Addressing the protection of union activities could also tackle broader societal issues, including childhood poverty, the lack of retirement savings among older adults, and the necessity for many to juggle multiple jobs.
Most Americans view every day as dominated by corporate interests, with Labor Day being the singular occasion to acknowledge the workforce that powers the nation. On this Labor Day, it’s imperative for everyone—compliant companies, a new generation of workers, supportive political candidates, and all who care about the country’s future—to advocate for the restoration of workers’ rights to organize and enhance their lives.
The expressed views in this commentary reflect only the opinions of the author and not necessarily those of Fortune. Originally published on Fortune.com.