By Cheryl Hentz
Wisconsin has historically had a strong union tradition and was the birthplace of public sector unions. In the early to mid-1960s, one in every three workers in the state was a union member, exceeding the national rate at that time.
Today, the consensus is that unions are considerably weaker than they were a decade ago, something some experts say was a result of two factors: the 2011 passage of Act 10 — a bill passed by a Republican-led legislature and signed into law by then-Gov. Scott Walker — and the passage of “right-to-work” legislation in 2015.
Act 10 limited the bargaining public-sector unions could do to include wages and wage increases only, and increases were capped at the rate of inflation. Because it prevented unions from any meaningful collective bargaining for schedules and benefits, it took away the most obvious benefit of public employees belonging to a union.
The “right-to-work” legislation challenged the operation of private-sector unions and allowed for workers to be represented by unions but didn’t require them to pay union dues.
In 2011, approximately 50 percent of public employees were union members, and by 2020, that figure fell to 22 percent.
When looking at both public- and private-sector unions statewide, only a slim 8.8 percent of Wisconsin workers are union members, and unionization has declined by one-third. That’s four times faster than de-unionization across the country and significantly faster than all neighboring states, except for Iowa.
Benefits of unions
With the persistent shortage of workers and employees wielding a great deal of power as a result, Jon Shelton, associate professor and chair of democracy and justice studies at the University of Wisconsin-Green Bay, says that at a minimum, private-sector unions could become important once again.
“There’s a number of reasons for the current worker shortage. One is COVID; another is some people retired and didn’t go back to work, or some people are struggling with child care issues. Whatever the reason, I think we’re going to be in this situation for a while, and it does give employees a lot of leverage,” Shelton says, adding that people aren’t willing to work for just $9 an hour or less anymore.
Shelton says employers would be smart to work with unions to help fill their vacancies. Employers that pay a decent wage and treat their workers well are struggling less to fill open roles. In addition, workers who feel a level of equity in the job they’re doing will be more likely to feel like they have a long-term stake with their employer, he says.
“Some of these employers who are finding it tough to fill positions would do themselves a favor if they offered things to incentivize employees,” says Mark Westphal, president of the Fox Valley Area Labor Council, AFL-CIO. “One big issue for working parents these days is some kind of child care reimbursement. That’s a huge issue for parents, especially single parents.”
Union members enjoy a considerable advantage over their non-union counterparts, he adds. On average, union members earn 11.2 percent more in wages; employer-sponsored health care is available to 96 percent; 93 percent receive sick leave; and 79 percent have some form of retirement plan. “So, there are still compelling reasons to be a member of a union,” Westphal says.
Trevor Martin, business manager at Plumbers & Steamfitters UA Local 400, says unions can provide several benefits to employers as well. Many unions train employees, so employers are getting skilled, highly trained workers. In addition, many unions administer the benefits package, so the employer doesn’t have to handle it. Plus, when there’s a close working relationship between the unions and the employers, everyone can work together to make the best decisions for the business overall.
“The belief that there is an adversarial relationship between unions and employers is a misnomer. It’s anything but,” Martin says. “There have been employers who have even sought out help from unions to find skilled labor, saying they would become a signatory union employer if the union could find them skilled labor.”
Labor shortage remains
Sachin Shivaram, CEO of Wisconsin Aluminum Foundry, likes having a union shop. In fact, there are three unions within the Manitowoc company. Shivaram says it makes the relationship more streamlined and manageable, and the unions take care of many tasks that would otherwise be the company’s responsibility.
“I think the biggest benefit of having a union is they’ve kept us on our toes and kept us doing what we need to be doing to create an effective place for people to work. They’ve done a lot of things to make sure our wages are high and the benefits are good,” he says. “That’s why we historically have had success in hiring people. Our headcount is up by about 100 in the last nine months, so we have made significant progress. I don’t think that would be the case if we didn’t pay good wages, have a reputation for being a great employer and offer our employees wonderful benefits.”
Still, WAF has about 70 vacancies. It hires people, but because the work is physically demanding with long hours, some people start, work a few weeks, then quit. The company also offers strong benefits: double time for overtime, a $400 monthly child care reimbursement, an attendance bonus, quarterly profit-sharing bonuses and 100 percent paid health insurance. But Shivaram says the situation would be a lot worse if WAF did not have unionized workers.
“We and the unions work very closely on wages, benefits and any policies we try to implement. It has helped us get employees in the door when others can’t. Having unions here is just part of our culture. It’s just a relationship that works,” he says.
