2022 saw an increase in the number of union waves across the U.S.

Allie Garfinkle, Yahoo Finance, explains how unionization has become a key topic in 2022.

Video Transcript

CHRIS SMALLS Yes, I am optimistic. You know that we are prepared for the long-term battle. We know the odds of defeating Amazon, and the odds of getting them to join the fight.

BRIAN SOZZI This was Chris Smalls, President of Amazon Labor Union. Ten days ago, he spoke to us about the prospects of contract negotiations over the next year. This year saw several major labor union fights, especially against corporate giants Amazon. What’s next? Allie Garfinkle, Yahoo Finance’s senior tech reporter, joins us for the analysis. Allie.

ALLIE GARFINKLE Brian, I’m glad to be here. You hit the nail on its head. These unions are taking down companies that used to seem invincible. We only have to look at the bottom of the list to see that. There is, of course the Amazon labor union, and its historic win on Staten Island earlier this season. Workers at Trader Joe’s and Apple, as well as Chipotle, voted unionization for the first time this year. Then there was Starbucks, right? They accounted for about a quarter all union elections this past year.

These unions have taken on companies that seemed impossible to stop, so on the one hand you have them. Unions have been focusing on the West Coast and Northeast for the longest time, but we have seen increased activity in the South as well. That’s what we see. Brian, I believe part of that is due to unions working their way back into public consciousness. The Gallup poll found that 68% Americans approve of unions now. It was a relatively recent Gallup poll and is the highest level of support since 1965. That’s also what I believe is a major component of the current situation.

BRAD SMITH What are the challenges facing the union wave in 2023, Allie

ALLIE GARFINKLE Brad, that’s a great question. They’re not yet out of the woods. Unions must overcome many logistical hurdles to get started, such as bargaining. It can take a long time and requires a lot of resources. Bloomberg reports that the average negotiation time is 465 days. They have to be self-sufficient and retain support.

The macro is also important, right? The union wave could be facing a recessionary environment. We don’t know yet what that will look like. Brad, I think the bottom line is that 2022 was the year in which unions made their comeback. 2023, however, is the year when those unions will see the rubber meet the road.

BRAD SMITH So with hiring freezes in many cases and headcount reductions in others, where does some of the union pushes remain or go?

ALLIE GARFINKLE We’ll see. The interesting thing is that we don’t really know, but I can tell what I have heard from workers. The message I hear from workers, no matter if it’s Apple, Amazon, or Starbucks, is the same. Because it has gained so much momentum, they all agree that the union push will not stop. However, it will be interesting to see if the bills are paid on time. Not only will they have to keep the momentum going, but also among the most enthusiastic organizers and those who accompanied them.

BRAD SMITH Allie Garfinkle, Yahoo Finance’s founder. This will be closely monitored, as we know that you will. Thank you so much for this report.