The Treasury Department today is releasing its most comprehensive ever look at the role that labor unions play in the American economy with a new report by the Department’s Office of Economic Policy. The report represents one of the over 70 actions implemented by the White House Task Force on Worker Organizing and Empowerment, chaired by Vice President Harris. The report finds that unions play an important role in addressing longstanding challenges faced by the middle class – including stagnant wages, high housing costs, and reduced intergenerational mobility. In doing so, unions contribute to a more robust and resilient economy.
President Biden, Vice President Harris, Secretary Yellen and the Administration have consistently championed the rights of workers and the role of strong labor unions in contributing to a thriving middle-class and economy – including through good-paying jobs, safe working conditions, and equitable treatment for workers.
The report’s key findings are:
Middle-class workers reap substantial benefits from unionization. Unions raise the wages of their members by 10 to 15 percent. Unions also improve fringe benefits and workplace procedures such as retirement plans, workplace grievance policies, and predictable scheduling. These workplace improvements contribute substantially to middle-class financial stability and worker well-being. For example, one study has estimated that the average worker values their ability to avoid short-notice schedule changes at up to 20 percent of their wages.
Unionization also has spillover effects that extend well beyond union workers. Competition means workers at nonunionized firms see increased wages too. Heightened workplace safety norms can pull up whole industries. Union members improve their communities through heightened civic engagement; they are more likely to vote, donate to charity, and participate in a neighborhood project. And, the higher pay and job security of both union and nonunion middle-class workers can further spill over to their families and communities through more stable housing, more investment in education, and other channels.
The Biden-Harris Administration recognizes the benefits of unions to the middle class and the broader economy and continues to take steps to strengthen their role. Promisingly, there have been recent signs of a reinvigorated labor movement, as union election petitions in 2022 bounced back from the pandemic to their highest level since 2015, and public opinion of labor unions is at its highest level in over 50 years. Actions taken and planned by the Biden-Harris Administration to advance this progress include:
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