By Kris Maher and Eric Morath
The strengthening economy and tight labor market are giving
workers more confidence to demand employer concessions through
strikes.
In recent weeks, unionized hotel housekeepers in Chicago,
distillery workers in Kentucky and crane operators in Seattle have
all walked off the job to pressure employers for better pay and
benefits.
Some 31,000 teachers in Los Angeles are threatening to strike,
and union members at ArcelorMittal SA and U.S. Steel Corp. have
given the authority to strike if negotiations break down.
With the national unemployment rate at 3.9% in August, just
above an 18-year low, and skilled workers in scarce supply, union
officials say they have more leverage at the bargaining table and
that workers are more comfortable with the risks associated with
striking.
Labor disputes have caused workers, excluding teachers, to miss
633,000 days on the job this year through August, up from 440,000
in all of last year, according to the Labor Department. Including
the wave of teacher strikes in the spring, there were more than 2
million days missed, the highest level since 2006.
"They see the economy is growing, but their share of it is not,"
said Thomas A. Kochan, a professor of industrial relations at MIT's
Sloan School of Management. The economy has shifted the bargaining
power toward labor. "We have not seen that take place in
years."
Strikes and other labor-related work stoppages had declined for
decades, as the share of workers belonging to unions fell. The
number of major strikes involving more than 1,000 workers has
dropped in recent decades. Labor disputes, which tend to rise
during good economic times and fall during recessions, reached a
record low in 2009.
Public-sector unions suffered a blow in June when the Supreme
Court ruled that government employees can't be compelled to pay
union fees, which has cut into the coffers of the politically
powerful unions.
"Now is the time to make sure we're delivering," said Christian
Sweeney, deputy organizing director at the AFL-CIO. "If you're not
going to do it when there's 4% unemployment, when is it going to
happen?"
Wages have been growing at a fairly modest pace relative to the
historically low unemployment rate. Nonsupervisory, private-sector
workers' average hourly earnings rose 2.8% in August from a year
earlier, the Labor Department said. While that matches the best
annual gain since 2009, it is well below the 4% rate of wage growth
recorded in late 2000, when unemployment was last similarly
low.
Wage increases for factory workers have been slower than
average. Hourly earnings for nonsupervisory workers in metal
manufacturing, which includes steel mills, rose 1.1% in August from
a year earlier.
A statewide teachers' strike in West Virginia that started in
February resulted in a 5% pay increase for teachers and changes to
the state public employees' insurance program, as well as increases
for other state employees, more than state officials had previously
offered.
Teachers who walked out over the next several months in
Oklahoma, Kentucky, Arizona, Colorado and North Carolina won some
pay increases and pension plan changes but not as much as unions
had sought in many cases.
Earlier this month, the union representing crane operators in
the Seattle area ended a 17-day strike after reaching a tentative
agreement with a 17.8% increase in pay and benefits over three
years. The union had rejected a 15% increase before it went on
strike.
"In an era of general prosperity, when companies are generating
greater profits, unions see the need to share that and are more
willing to take direct action to get it," said Gary Chaison, a
professor emeritus of industrial relations at Clark University.
In Chicago, roughly 5,000 housekeepers and other workers at 26
hotels went on strike on Sept. 7, demanding increased health-care
coverage for newer employees, among other things. Unite Here Local
1 has argued that hotels are making record profits and should grant
better benefits.
"It was a good time to go on strike," said Tina Graham, a
60-year-old housekeeper who has worked at the Palmer House, a
Hilton Worldwide Holdings Inc. property, for 11 years and now earns
$19.75 an hour.
She said the union wants year-round health-care coverage for
workers typically laid off in the winter before being called back
in the spring. The union also wants to cut the number of rooms
workers like Ms. Graham need to clean per shift to 14 from 16
currently.
A Hilton spokeswoman said the company is committed to
negotiating in good faith and values its employees.
Michael D'Angelo, vice president of labor relations at Hyatt
Hotels Corp., said his company, also a target of the Chicago
strike, was disappointed that Unite Here chose to walk out when
negotiations are ongoing. Mr. D'Angelo said the company offers
workers competitive wages and good benefits, including health care
and retirement contributions.
"Hyatt has a long history of strong labor relations," he
said.
A Marriott International Inc. spokesman said the company reached
a contract agreement with the union on Thursday, but declined to
provide specifics. The union said the agreement covers 1,200
workers.
In Michigan, highway construction projects across the state are
stalled because the Michigan Infrastructure & Transportation
Association, which represents contractors, has locked out
heavy-equipment operators.
Mike Nystrom, a spokesman for the contractors association, said
the operating engineers' union has turned down a 14.4% increase in
total compensation. "They self-authored a contract and have put in
it everything they've ever hoped for and wanted," Mr. Nystrom
said.
Dan McKernan, a spokesman for Local 324 of the International
Union of Operating Engineers, which represents more than 1,000
affected heavy-equipment operators, said the union wants individual
contractors to agree not to hire nonunion subcontractors. He said
the tight labor market has strengthened the union's hand.
"In a different economy, these contractors would have gone right
out to get people to fill these positions," Mr. McKernan said.
"They just don't have that ability right now."
Officials with the United Steelworkers say steel giants
ArcelorMittal and U.S. Steel are asking for concessions rather than
sharing profits, which have been helped by tariffs on foreign
metals.
Contracts for both companies expired Sept. 1. Both companies are
asking workers to pay more for health care.
U.S. Steel said its offer contains significant wage increases
and choice between quality benefits plans and that the two sides
are continuing to work toward "a mutually agreeable
conclusion."
ArcelorMittal reported health-care costs per employee are up 78%
since 2008, and the company said it is working to reach an
agreement with the union.
In Lawrenceburg, Ky., 53 workers at a Four Roses bourbon
distillery and bottling plant have been on strike since Sept. 7.
Jeffrey Royalty, a distillery worker and president of United Food
and Commercial Workers Local 10D, said the sticking point is
proposed changes to paid sick-day plans for new hires.
"A claim that we are proposing a 'two-tier' sick leave policy
that discriminates against new hires is not true," the company
said.
The union says the plan for new hires is inferior and is in fact
a "two-tier" proposal. "I'm just a country gentleman, but I don't
need a dictionary to tell me that," said Mr. Royalty.
Write to Kris Maher at kris.maher@wsj.com and Eric Morath at
eric.morath@wsj.com
(END) Dow Jones Newswires
September 23, 2018 07:14 ET (11:14 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.