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June 2024

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New Numbers Prove Unions
Increase Household Wealth, Reduce Inequality

New data shows, once again, that union membership is a great bet for increasing household wealth — and more and more people are coming together to get that opportunity.

A union household has 1.7 times the median wealth of a nonunion household, according to 2022 figures from the Federal Reserve's Survey of Consumer Finances, analyzed by the Center for American Progress. The median for union households was $338,482, compared with just $199,948 for nonunion households.

That difference holds across demographic groups as well as education levels. In fact, union membership narrows the racial wealth gap. Membership in a union was found to increase median wealth between 167% and 228% for households of color, compared with a 37% increase for white households.



"Unions are a proven ticket to the middle class," International President Kenneth W. Cooper said. "With so many Americans struggling to make ends meet and realizing what unions can do for them, the IBEW needs to seize the opportunity and organize like never before."

Union households have more wealth than their nonunion counterparts at every education level measured, including for those without a high school degree. Union members are also more likely to own a home and have a retirement plan than nonunion Americans.

These findings match earlier analyses by CAP that concluded that union membership is associated with higher levels of wealth across all households. CAP's previous surveys also complement findings from the Economic Policy Institute on how unions decrease worker inequality — for both union and nonunion members. When union density is high, it raises the wage standard for entire industries, which forces nonunion employers to compete with union shops.

The EPI also found that unions reduce racial and gender wage disparities and push for progressive policies that benefit all working people. The EPI stated in its report, "A strong labor movement protects workers, reduces disparities and strengthens our democracy."

A 2023 Treasury Department report also found that unions contribute to a strong middle class by raising wages and improving benefits, which in turn sets higher labor market standards that tend to increase the wages and benefits of nonunion workers as well, all of which creates more financial stability in a community.

As income inequality continues to rise and more people experience decreased purchasing power, all the while witnessing high-profile bargaining wins from unions including the UAW, the Teamsters, and the writers and actors guilds, an increasing number of people are organizing their workplaces. According to the National Labor Relations Board, union election petitions filed in the first six months of fiscal year 2024 (Oct. 1 - March 31) rose 35% over the same period in the year prior.

What's more, thanks to new worker-friendly rules, union elections are being held more quickly, with the period between filing a petition with the NLRB and balloting in contested elections shrinking from 105 days in fiscal year 2023 to less than 59 days since late December, when a new election rule became enforceable. That rule rolled back Trump-era changes that made the election process slower and more cumbersome, a formula that often favors employers at the expense of employees.

Nothing exemplifies the new era in labor law better than the 2023 NLRB decision in the Cemex case. After Cemex, once a majority of workers sign cards seeking a union, employers have only 14 days to call an election or start bargaining. and if they commit a single unfair labor practice during an election campaign, the board can order the employer to recognize and bargain with the union.

"At every turn, the Biden administration's NLRB has sided with working people and their right to join a union," Cooper said. "It's like night and day compared to the previous administration, and workers everywhere are better off for it."



New Training Makes It Easier to Talk About Issues
That Matter to Members

Discussing politics hasn't been easy for even the closest of acquaintances during the last several years. Many Americans report losing friends over elections. Some in the national media would rather stoke divisions than report actual news.

Thus, many organizations are reluctant to even bring the topic up. And the IBEW isn't immune, even though the ballot box has the potential to drastically change the fortunes of working families, for better or worse.

"Some of our local unions stopped talking about politics entirely, unfortunately," Fourth District International Vice President Gina Cooper said. "They were terrified of it."

That led Cooper and the Fourth District staff to develop the Politics, Activism & Livelihood program, otherwise known as PAL.

"We realized we've got to make a change here," Cooper said. "We have to come up with some level of training that helped our members understands how politics affects their livelihood and get them comfortable talking about politics again."

Under the auspices of the Education Department, PAL will soon be rolled out nationally. A Canadian version is being developed for First District members and local unions.

Training will be available in both countries on how best to discuss policy and politics among members, specifically when it comes to matters important to all IBEW brothers and sisters, such as retirement and safety on the job.

It is based in part on the Education Department's COMET program, which has successfully educated members on the value of organizing for nearly three decades. PAL will educate members on the value of the IBEW being involved in politics on all levels and how it benefits our members.

"The idea is to talk about kitchen-table issues," Education Director Amanda Pacheco said. "What are the issues our members care about? Their paycheck, job outlook, benefits and economic security. We show why we must be involved in politics because of the impact it has on them."

The program is nonpartisan. Fourth District International Representative Steve Crum, who has led several training sessions, noted that it makes no distinction between Republicans or Democrats. IBEW leaders do not tell members how to vote but encourage them to support candidates who will aid working families and the middle class.

The IBEW has built relationships on both sides of the political aisle. For instance, Republicans have dominated the Ohio Legislature and governor's mansion for more than a decade, but the IBEW and its allies have thwarted some potentially harmful policies, such as a so-called right-to-work law, by building relationships within the GOP caucus, Crum said.

Getting the word out that we work with anyone who will work with us is an important part of the training, he said.

"Many of our members are Republicans and think we only support Democrats," said Crum, who lives in Ohio. "That is not true."

PAL also avoids social issues. Those issues aren't discounted, but Cooper noted the role of a union is to collectively work to improve the lives of members and their families.

"We deal in workers' rights," she said. "The goal is to raise working conditions for our members. That is what we are solely engaged in."

Crum has led several PAL sessions at local unions throughout the Fourth District. "The beauty of PAL is the training," he said. "It explains economics. It explains the importance of supporting politicians who support us."

The clear connection between politics and pocketbooks is a major reason Cincinnati Local 1347 Business Manager Andrew Kirk has hosted several PAL training sessions for his local. "You see the difference in pay [between union and nonunion shops] and the tactics corporations sometimes use against us," he said. "It's definitely educational."

Kirk said about 80% of the local's 800 members have taken part in the training. The feedback has been overwhelmingly positive, even from some who went in skeptical, he said.

The visuals and graphics that Crum used during the training were especially helpful, Kirk said. The focus was entirely on economic security. Partisan politics was never mentioned.

"The program was very successful in our local," Kirk said. "It's something to build on. Education is the key, and sometimes in the past, I don't think we've always educated our members on politics, like our local should have."

The IBEW has endorsed Joe Biden for a second term as president. That has everything to do with his administration's policies. They have created jobs and improved wages for members, most notably through the Bipartisan Infrastructure Law, Inflation Reduction Act and Chips Act. They've also been conducive for the IBEW growing its membership.

"We have a duty to explain the importance of politics," Crum said. "With one quick swipe of the pen, everything we've bargained for and worked for can be eliminated."

Secretary-Treasurer Paul Noble saw the importance of talking to members about politics while serving as business manager of West Frankfort, Ill., Local 702 and later as Sixth District international vice president.

He said PAL will make it easier for business managers and other local leaders to engage their members and encourage them to have those conversations with one another.

"When you show our brothers and sisters where these issues have an impact on their wallet, they're much more receptive," he said. "Unfortunately, in this era of extreme partisanship and of social media, that isn't always easy to do. It's critically important for our members to understand why we support candidates not just on a national stage, but local and state ones as well."

Crum said the training sessions in the Fourth District have been positive, especially when dealing with apprentices just beginning their IBEW careers.

"You make it relevant," he said. "I think we changed some hearts and minds in those classes."


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Business Manager Andrew Kirk with other members of Cincinnati Local 1347 during a PAL training session.


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Local 1347 executive board member Kyle McMahan shows off the certificate he and others received after completing the class.