Hot strike summer has 'real potential to last,' Ivy League expert says: 'There's a contagion effect'
Tens of thousands of workers, from Hollywood writers and actors to hotel workers to UPS drivers, have taken part in the "summer of strikes." These kinds of collective actions are likely to keep going well into the fall, experts say.
Over 230 strikes have been recorded this year so far, involving more than 320,000 workers, compared with 116 strikes and 27,000 workers over the same period in 2021, according to data by the Cornell ILR School Labor Action Tracker.
The resurgence is due to three key factors, says Alex Colvin, dean at the Cornell School of Industrial and Labor Relations: New union leadership to push for stronger deals, new and younger union members calling for better working conditions, and a strong labor market with low unemployment.
"We're seeing a confluence of a lot of labor activity in multiple areas, coming on the back of a surge in union organizing at places like Starbucks and Amazon" during the pandemic, Colvin says. "This is a noteworthy push on the labor side."
News of strikes and their resolutions create momentum. "When you see another union succeed, you're more inclined to push yourself for a better deal," he adds. "There's a contagion effect in seeing the [strike] strategy working, and you're more likely to use it yourself."
Union wins have another, possibly unintentional, consequence: Making employers more attractive.
UPS saw an increase of more than 50% in searches for open jobs on Indeed, Bloomberg reports, after it came to a tentative agreement with the Teamsters Union. The deal would improve working conditions and boost pay, leading to an average driver earning $170,000 in pay and benefits at end of a five-year deal, according to CNBC.
Starbucks, which formed its first union in December 2021, has seen a 96% increase in searches for barista jobs in the last year, according to Indeed data provided to CNBC Make It. Amazon, where New York-based warehouse workers voted to unionize in April 2022, has seen a 110% jump in searches for "Amazon warehouse" or "Amazon fulfillment center" jobs on Indeed in the last year.
Search increases for both companies over the last year are considered "above average," according to an Indeed representative.
It's "absolutely the case" that strong union protections can be a great hiring tool, Colvin says, as reluctant as companies may be to admit it. "Good wages, benefits and job protections that you see in unionized jobs are going to attract workers. Companies may not start with that premise, but they will see a benefit from it."
"Hollywood is a good example," he adds, "where people in technical trades that support productions have a lot of protections and benefits. Those are good jobs because of the unions, and that attracts people in."
Not all strikes in 2023 so far have resolved in favor of the workers. The writers and actors in Hollywood looking to protect their "good jobs" have not yet settled with the studios, and the members of the Writers Guild of America and the Screen Actors Guild-American Federation of Television and Radio Artists could remain on the picket lines until October or November, some experts say.
Meanwhile, another large-scale strike looms, Colvin says. He has his eye on nearly 150,000 United Auto Workers union members at General Motors, Ford Motor and Stellantis. Labor contracts expire mid-September, and if the two sides don't come to an agreement, employees could walk.
A work stoppage of 10 days could result in an economic loss of more than $5 billion, CNBC reports.
However those situations play out, the progress made and attention drawn to hot strike summer "creates a foundation for more longevity for a labor upsurge" in the months and years to come, Colvin says: "It's got real potential to last."
Want to be smarter and more successful with your money, work & life? Sign up for our new newsletter!
Get CNBC's free Warren Buffett Guide to Investing, which distills the billionaire's No. 1 best piece of advice for regular investors, do's and don'ts, and three key investing principles into a clear and simple guidebook.
Check out: 'Survival jobs' and side hustles: How Hollywood writers make ends meet 100 days into the strike