A contrary take on organized labor

Most CEOs disdain labor unions. I haven’t been able to find any formal research to bolster that assertion, but consider how the leaders of Starbucks, Amazon, and Apple have opposed unionization efforts at their companies. Nine of the top 10 “best states for business,” according to CEOs surveyed by Chief Executive, are so-called right-to-work states with laws that prohibit companies from requiring union membership as a condition of employment.

Executives’ anti-union stance puts them at odds with much of the public. A majority of Americans approve of organized labor, with one survey suggesting seven in 10 nonunion workers would consider joining a union if given the opportunity. And while overall union participation is at historic lows – just 11% of U.S. workers are represented by a union – the National Labor Relations Board saw a 53% rise in petitions for union representation in fiscal year 2022.

UNION CONTRIBUTIONS

Unlike some other CEOs, I value my company’s labor union. About 31% of our employees are represented by the Writers Guild of America, East, but the impact of the union is felt across the business. For example, the 18-week parental leave policy negotiated by the bargaining unit is available to all full-time employees, including nonmembers. The union’s diversity committee conducted an audit of editorial content that prompted an important and larger conversation about the inclusiveness of our journalism. A different union committee offered candid and important concerns about employee health and safety when we returned to in-person conferences and events in 2022.

I’m not the only one who sees the value of a communicative union in strengthening organizations. Mike Draper, founder and owner of Raygun, a Des Moines-based printing company with eight retail stores, says he and an employee actually recruited United Electrical, Radio and Machine Workers of America to unionize his 100-person company. “Our labor lawyer was like, ‘Wow, I’ve never heard of that happening,’” he says with a laugh.

HUMAN-CENTERED NEGOTIATIONS

Draper believes organized labor is far from perfect and acknowledges that unions may not be right for every company. But he says that negotiating a contract with the union gave him an opportunity to share the realities of his business with employees. For example, to offer the paid vacation and sick leave the union wanted, he explained that he’d need to staff up to cover for absent workers. Employees, in turn, understand that paid time off “does come with a cost that can be hard to compare across companies,” he says. It’s “not as easy as just comparing [listed] wages.” Says Draper: “When you have thoughtful humans on both sides who are willing to meet in the middle," being a unionized shop “works just fine.”

STATE OF THE UNIONS

I expect many leaders will disagree with Draper and me – send your comments to [email protected] – but at a time when hearing from employees is key to business success, unions can offer another outlet for worker feedback. And if your employees want to form unions, they’re clearly sending a message to management. It might be a good time to start listening.

 Read, listen, and watch: unions and leadership 

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?   Can a labor union be an innovator? Read more

?   Meet the new American worker. Read more

?   Timeless leadership advice from Inc.: Talk less, listen more. Read more

?   Innovation powerhouses empower their employees no matter what the market looks like—in fact, they lean into it. Apply to be named one of Fast Company’s Best Workplaces for Innovators. The deadline is nearing. 

?   Each year the Inc. 5000 honors the fastest-growing private companies in America. Submit here if you think your business makes the cut.    

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