Labor unions were, for most of their early history, about keeping businesses in check. In a kind of equilibrium, businesses grew the economy while unions made sure that it didn’t come at the expense of workers not being able to eat. However, starting in the 1950s, unions started to lose members. In the early 1950s over 32% of American workers were unionized, in 2022 it was 10.1%.
Some analysts say that one of the biggest causes for this was that union leadership became corrupt. Union leaders became more focused on staying in power, and growing that power than actually fighting for their members’ lives. This dynamic was disrupted last March in Detroit when the United Auto Workers Union (UAW) voted into power Shawn Fain, the first non-leadership insider to be elected President of the UAW in over 70 years.
Shawn Fain has in the first few months of being in power reinvigorated the UAW’s militancy when negotiating for its constituents, changed how it decided who to support politically, and has been far more open with how the union works.
The first prominent change made by Fain was not endorsing President Biden for the 2024 election. Previously, the endorsement of the Democratic nominee would have been all but assured. This year the UAW, under Fain’s leadership, says it wants more than platitudes of being pro-union from their choice of president. Concerns over job security as the auto industry shifts away from gas cars and begins to build more electric vehicles must be answered if the “most pro-union president… in American history” wants to receive a UAW endorsement.
Although this change is significant, it pales in comparison to how aggressive the UAW has become in its negotiating tactics with the Big Three—Ford, General Motors, and Stellantris. Previously, the UAW would negotiate with one of the 3, and use that deal as a basis to settle with the others. This tactic has historically not netted the UAW, and most unions, significant gains. Therefore, it makes sense that Fain from start to finish completely changed how the union compromises with its opponents.
Firstly, Fain decided to open negotiations with all three companies simultaneously, which not only shows business to the Big Three’s executive teams but also motivates government officials to get involved to avert a strike that will start at midnight, on September 15. Furthermore, in a break of tradition, Fain did not extend the customary handshake to executives at the beginning of the negotiation process, stating: “I’ll shake hands with the CEOs when they come to the table with a deal that reflects the needs of the workers who make this industry run.” Finally, the demands for the new deal are historic in scope: A 46% pay raise over the next 4 years, a 32-hour work week with 40 hours of pay, and a restoration of traditional pensions — something that workers hired after 2007 lack.
Fain has called the demands audacious, and has shown a willingness to be flexible, but has so far tossed proposals sent to the union into trash cans and remains aggressive. However, even if the UAW doesn’t get all of its demands fulfilled, the willingness to go on the offensive follows the recent trend of unions becoming more ambitious, and starting to reclaim their former power in the American workplace.
