Tight job market rebalances power between US business and labor

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The US economy is contending with a wave of union activism unseen in decades as organized labor seizes a rare opportunity to play hardball in a tight employment market.

A lengthy strike by Hollywood actors is among the labor unrest that has hit the US economy this year. Photo: Frederic J. BROWN / AFPis contending with a wave of union activism unseen in decades as organized labor seizes a rare opportunity to play hardball in a tight employment market.

The activism can feed on itself as workers in different sectors observe each other fighting for more, sometime spurring concessions from employers who are trying to stay union-free, said Schurman.Higher consumer prices have been another catalyst for workers, adding credibility to workers claims that they need higher pay just to break even.

In August the United States lost 4.1 million days of work due to strikes, the highest level in 23 years, according to the Labor Department.Pointing to soaring CEO pay at the companies, UAW President Shawn Fain has called out the automakers to boost pay and restore benefits following union concessions after the 2008 financial crisis and ensuing auto industry bankruptcies.

 

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