Labor Organizing on the Rise

In this post, we hope to raise awareness of this important topic and provide insights into the possible reasons behind this trend. We will also provide insights on how to recognize the signs that your employees may be considering organizing, as well as strategies for preventing unionization and maintaining positive labor relations within your organization.

The Facts on Labor Union Trends

Labor union organization is on the rise. The National Labor Relations Board (“NLRB”) reports that union representation petitions filings have increased 57% to 1,174 from 748 during the first half of fiscal year 2021.  As noted below, the trend is continuing:

Last April, NLRB General Counsel, Jennifer Abruzzo said, “Right now, there is a surge in labor activity nationwide, with workers organizing and filing petitions for more union elections than they have in the last ten years.” As the above chart shows, in 2022, unions won 600+ elections, which hasn’t been that high since at least 2005!

In prior years, Unions targeted certain types of industries (manufacturing, warehousing, etc.)  Now, unions are targeting all industries, including big name companies previously notorious for union-free workplaces like Starbucks, REI, Lululemon, Amazon, Trader Joe’s, Chipotle, Apple, Google, Hello Fresh, Politico, Tesla, Activision/Blizzard, and Buzzfeed.  For example:

• This month, workers at a Starbucks store in Ashland, Oregon publicized their intent to form a union to advocate for more staffing and better pay. If successful, this would be the first store in Southern Oregon to do so.
  
  
• Last month, Tesla employees at a plant in Buffalo, New York sent an email to CEO Elon Musk, announcing their intent to join a union because “unionizing will further accelerate the world’s transition to sustainable energy because it will give us a voice in our workplace and in the goals we set for ourselves to accomplish.
  
  
• In recent months, the Alphabet Workers Union has helped employees wage war on tech conglomerates like YouTube and Google to advocate for various work rights and conditions in the aftermath of the wave of layoffs in the industry.

As Unions continue to gain traction, it is important to understand some of the reasons employees may consider when unionizing.

Why Do Employees Organize?

We are seeing a shift in the attitudes of Americans overall with respect to labor unions. According to a recent Gallup Study, 68% of Americans approve of labor unions, the highest Gallup has measured since 71% in 1965.

The various reasons employees choose to organize may vary from industry or the employee population demographic. Different cohorts value different things. Some of those reasons might include the following:

• Voice. Employees believe that unions may offer a way for employees to have a say in the decisions that affect their work and their jobs.
• Working conditions. Employees may choose to organize to negotiate better pay, benefits and working conditions.
• Fair treatment (including diversity, equity, and inclusion efforts). Employees want to be treated equitably among their colleagues and peers when it comes to pay, interpretation of policies and practices.
• Job security. Employees may believe that the union can negotiate contracts that include protections against unjustified termination.
• Safety. Employees may want to improve safety conditions at the workplace.

Mistakenly, many employers believe that employee concerns regarding benefits and perks (such as PTO and other benefits) are the primary drivers of unionization. While those motivators play a part, observations of unionization efforts within Fortune 100 companies (like those we have already mentioned in this article), known to be the gold standard of comprehensive benefit packages, suggest that additional factors are at play (like the ones identified above). With this in mind, we present the following strategies to get ahead of any unionization efforts that may occur in your organization.

Signs of Organization and Strategies to Remain a Union-Free Workplace

Next, it is important to be aware of the potential signs that your employees may be organizing a union. Here are some signs that may indicate union activity:

• Increase in complaints and grievances.
• Increase in chatter - negative social media posts, low Glassdoor ratings or Slack posts about employee dissatisfaction with pay, benefits, management or working conditions.
• High employee turnover or requests for transfers.
• Groups of employees gathering frequently
• The presence of union literature or materials (flyers, posters or other materials promoting union membership or encouraging employees to join a union).
• More overt signs could include the formation of a union committee or the distribution of authorization cards.

By identifying the signs early on, you can take steps to address any concerns and maintain a union-free workplace, which could include the following:

Nurture a culture of listening and communication

Open and clear two-way communication in the workplace helps to build trust and understanding and can make it easier for employees to raise concerns and have their voices heard. Actively listening to and addressing employee issues and concerns will help management get ahead of any issues before they become major problems and help avoid the need for unionization.

Having an employee listening strategy can help companies improve communication and understanding between management and employees.

Companies are always looking for ways to stay competitive in their industry, and one important aspect of this is understanding the latest trends and benchmarks in the workplace. While it’s important to know what other organizations are doing, it’s even more important to understand the specific needs and values of your own employees. By tailoring your benefits, perks and programs to the unique needs of your employee population, you can create a more effective and engaging work environment. This is why building an employee listening strategy is crucial for any organization. It allows you to understand the needs and values of your employees and create an environment at work that meets those specific needs.

Here are a few considerations for building an employee listening strategy:

• Allow for diverse channels of communication and feedback. These can take the form of annual engagement surveys, small pulse surveys deployed at regular intervals, suggestion boxes, one-on-one meetings, virtual focus groups and open-door policies.
• Promote a safe talking space. Encourage communication so that employees feel comfortable speaking up and sharing their thoughts and ideas. Be approachable and responsive to employees’ voices and feedback.
• Take employee feedback seriously. Provide updates to employees on how feedback is being used and what changes (or not and why) are being made as a result.
• Committed Leadership. Make sure leadership is fully committed to engaging with employees to promote active listening and open communication.
• Integration. Embed the communication within the company’s values and integrate it into the company culture.

Promote a culture of values

When employees feel connected to the meaning and purpose of their work, they are more likely to be engaged and committed. Most employees want to feel a sense of connection to the meaning and purpose of their work and want to understand how their work aligns with their own values and ambitions.

A culture of values can provide employees with a sense of direction in helping them to understand how their work fits with the big picture and helps to create a sense of shared purpose among employees.

Creating a culture of values is not a one-time event, it’s an ongoing process that takes commitment and calibration from all employees and leaders.

Some considerations for creating a culture of values:

• Identify the values that are most important to your company and clearly communicate them to all employees.
  
• Embed your values in all facets of your business (decision making, hiring, product/service development, leadership style, communication and language, policies, practices, business strategy, operations, etc.)
  
• Call attention to and reward employees who exemplify company values.
  
• Empower employees to make decisions and take actions that align with company values and provide them with the autonomy and resources they need to do so.
  
• Continuously calibrate company values and evaluate the effectiveness of the culture of values and adjust where needed. (Are you living the company values, or have they just become motivational words on the wall?)

As a final note, federal laws (including the National Labor Relations Act) require employers to abide by certain legal obligations when communicating with employees seeking to form or be part of a union.  Should you have any questions or concerns regarding your Company’s union-free strategies, please consult your attorney.