State of the union(s): Taking stock of organized labor movements in America

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This week, Microsoft recognized the company’s first ever labor union, formed of 300 employees in their videogame unit, ZeniMax. The tech giant now joins the list of other major organizations, such as Apple, Starbucks, Amazon and Alphabet, that have seen unionization attempts, some of which went better than others.

State of the union(s)

Although labor movements at high-profile companies now routinely grab headlines, they remain unrepresentative of the bigger picture in America. In the last 50 years, private sector union membership has declined dramatically — in the 1970s nearly 25% of private sector workers were trade unionists, today that figure is closer to 6%. The public sector, however, is a different story, with union membership holding steady.

Why such a disparity has emerged between private and public is a topic for an economics PhD. Some have argued that organizing efforts are just more difficult in the private sector, where bankruptcies and corporate restructuring are common. Others argue that legislative changes have made organizing difficult, and there is also evidence that unions are simply more effective when bargaining for better wages in the public sector — making them more likely to persist.

Don’t call it a comeback?

Whether the current momentum translates into a meaningful unionization trend remains to be seen, but public perception suggests it might be more than a few isolated cases. A recent Gallup survey showed that 71% of Americans approve of unions, the highest number since 1965, and other studies suggest Gen-Z are more pro-union than any other generation.

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