🔎 Market Mysteries

We're witnessing a remarkable upsurge in labor movements unlike anything seen in decades. Hundreds of thousands of workers have taken to the streets, demanding better wages, more benefits, and improved working conditions. In response, corporations have voiced concerns about their ability to manage these potentially higher costs. In the end, it's really just an evaluation of priorities.

Large corporations play a significant role in determining our incomes. Despite the lack of standardized wage disclosures, it's clear that larger businesses wield considerable power when it comes to shaping the economy. Half of America is employed by large corporations, with giants like Walmart and Amazon employing nearly 4 million people combined.

Companies are under no obligation to pay their workers enough to live on. The federal minimum wage has remained stagnant at $7.25 per hour for over a decade. Working full-time at that rate doesn’t cover the most basic shelter, food, and healthcare expenses in any state. Even if raised to $15 per hour, that wouldn’t cut it in every state. While small businesses are grappling with the pressure of higher wages, these corporations have the resources and influence to pay their workers what small firms can't. Yet, they seem reluctant to do so.

Over the past few decades, workers' negotiating power has significantly diminished. Labor unions are crucial in advocating for workers' rights and ensuring fair wages through collective bargaining. However, their influence has waned over the years. Union representation has declined to a record low of 10% in 2022, less than half what it was 40 years ago. However, a new tide seems to be turning. We're witnessing a significant surge in union participation, labor organizations, and strikes. This resurgence is challenging the status quo and shaping the future of work in the United States.

Union membership has steadily declined since its peak in the 1950s at one-third of the workforce. However, amidst rising inequality and cost of living, workers have started banding together to push for change. In 2022, union representation petitions increased 53% from the previous year, the most since 2016. Public support for unions has also significantly increased, from under 50% approval in 2009 to a robust 70% in 2022. The rise in union activity isn't limited to traditional sectors. For the first time, employees have unionized at major employers like Amazon, Starbucks, Chipotle, and even Apple. Over 350 Starbucks stores have unionized in the past two years, and this trend shows no signs of slowing down.

Alongside the rise in union activity, there has been a significant increase in strikes. This year has seen the most work stoppages in decades, with at least 453,000 workers participating in 312 strikes across various industries, including transportation, healthcare, actors, writers, hospitality, video games, railroads, manufacturing, food, and dock workers. This year has already had the highest number of missed work hours for strikes in about 23 years. In 2023, workers have skipped out on a staggering 7.4 million cumulative work days, compared to just 636 days in the same period of 2022. That's a massive shift in just one year.

Workers are standing up for their rights, demanding better pay, safer working conditions, and respect from their employers. It's no secret that the United States has become challenging for workers. Working a full-time job no longer guarantees you can afford basic living expenses. The struggle to make ends meet is real, and it's worsening. More than 10% of working-age Americans living below the poverty line hold full-time jobs, and 60% of Americans live paycheck to paycheck.

Workers want to be paid a living wage. Even though numerous major corporations in America are generating unprecedented profits, a significant number of their employees face difficulties meeting their basic needs. A shocking 51% of all workers at America's 1,000 biggest public companies do not earn an income to support a family. That's roughly 11.1 million workers who can't support a family with another full-time working adult and two children. One in three employees of America's biggest corporations are not earning enough to meet their basic needs without dependents. These are individuals working full-time jobs at multi-billion dollar corporations who find it impossible to afford rudimentary expenses such as housing, food, and healthcare without assistance.

Workers want the respect of a fair share of their production. The disparity between worker pay and executive compensation keeps widening. From 1978 to 2020, the compensation of CEOs has skyrocketed by an astonishing 1,322%, well outpacing the growth of the S&P 500 stock market. In stark contrast, the average worker's compensation has only increased 18% during the same time. Over the past two decades, corporate profits have grown twice as fast as wages, adjusted for inflation. Workers' share of corporate profits has steadily declined over the last three decades from over 85% to below 75%. Corporate growth hasn't trickled down to workers.

Workers want better benefits, and unions are leading the charge. Union benefits significantly outstrip those of non-union workers. Employers spend more on healthcare and retirement support for union workers, who also have greater access to defined benefit plans and healthcare. Nearly all union workers have access to medical care and retirement plans, while a third of non-union workers don't.

Workers are also demanding safer, more humane working conditions. More than 340,000 UPS workers threatened a strike this summer to earn higher pay and air conditioning in their vehicles, a long overdue move. Drivers have been suffering from heatstroke and dying due to their vehicles’ lack of air conditioning. Pharmacy workers have shutter doors to fight unfair work demands. As Walgreens and CVS pivot towards offering more healthcare services, pharmacists have been expected to handle an increased workload of vaccinations and patient care without appropriate staffing. Amidst a significant staff shortage, pilots from various major airlines have successfully secured new contracts that offer improved working conditions and enhanced scheduling.

Workers are fighting for fair contracts and job security. Auto workers are demanding consistency in pay across workers doing the same job, regardless of whether they work in traditional or electric vehicle plants as full-time or temporary workers.

The modern workforce isn't just sitting idle anymore when faced with unfair working conditions. They're using the power of unions to demand more than just decent pay - they're fighting for better benefits, improved work conditions, and fair contracts. It's a reminder that we have deep-rooted problems in our corporate culture that need urgent attention. It's time businesses shift their focus from chasing profits to caring for their workforce - ensuring they're healthy, satisfied, and adequately rewarded for their hard work. Let's rise to this challenge.

Keep fighting,

The Scoop Team