Union Formation 'Wave' at Amazon, Starbucks, and Apple Store... Expansion Potential Remains Uncertain [Jjinbit]

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Next month, Amazon, a leading example of 'union-free management,' will hold a vote on forming a labor union. After a long-standing conflict between employees and the company over whether to establish a union, the U.S. National Labor Relations Board (NLRB) has allowed the vote to proceed by siding with the employees. Even after the voting schedule was set, opposition arose as the company continued to resist union formation, causing ongoing friction.

The movement to establish unions at Starbucks is also spreading nationwide across the U.S. Starbucks employees at the Buffalo, New York store formed a union in December last year. It was the first union in Starbucks' 50-year history. Currently, more than 100 Starbucks stores, including those in Mesa, Arizona, have filed for union formation. As the company is not welcoming this, employees preparing to establish unions have filed complaints with the NLRB, claiming that the company is obstructing the voting process.

Amazon and Starbucks are representative cases showing that the union formation movement, which gained momentum last year, continues this year. In addition, union formation efforts have emerged this year in other large corporations such as Apple Stores. Furthermore, in South Korea, office worker unions are being promoted from the beginning of the year at LG Energy Solution and LS Electric.

Why Is There a Union Formation Wave in Both Korea and the U.S.?

This wave of union formation seems to stem from dissatisfaction with unfair treatment. In Amazon's case, the first union formation attempt was made in 2020. At that time, employees raised issues about working conditions, such as only two 30-minute breaks during a 10-hour shift and the recording of bathroom visits. Starbucks also emphasized the need for unions due to excessive workloads and other reasons.

[Image source=Reuters Yonhap News]

Moreover, the COVID-19 pandemic appears to have ignited this movement. Even when confirmed cases occurred, the company did not implement significant quarantine measures, forcing employees to work while being directly exposed to danger. Employees took action after witnessing the company's disregard for their safety, such as not providing masks or hand sanitizers.

In the U.S., the recent labor shortage has also become a driving force supporting union formation. As companies try to retain talent through expanded benefits and wage increases, employees have found it easier to voice their demands than before. They are now forming unions to negotiate collectively.

"To Improve Working Conditions, We Must Speak Out" MZ Generation Unites

Having looked at the background of union formation, let's examine the characteristics of recent union formation efforts. The most notable aspect is the entry of young people. The so-called 'MZ generation,' referring to those in their 20s and 30s, is actively participating in union activities. Their generational trait of directly expressing their demands and a more positive view of unions compared to the past seem to be drawing them into union involvement.

According to Fox News citing data from the U.S. Bureau of Labor Statistics, the overall union membership rate in the U.S. showed little change between 2019 and 2021. However, among workers aged 25 to 34, the union membership rate increased from 8.8% to 9.4%, adding about 68,000 members. Fox News evaluated that "young workers see unions as the best way to address wage inequality and poor working conditions."

[Image source=AP Yonhap News]

Behind this is a change in young people's perception of unions. According to a Gallup poll on union perception released last September, 68% of U.S. adult respondents viewed unions positively. This is a 20 percentage point increase from 48% in 2009. Notably, 77% of respondents aged 34 and under responded positively, which is 9 percentage points higher than the overall respondents. This indicates a shift in how workers in their 20s and 30s perceive unions.

Recent unions formed in South Korea show a similar trend. The office workers' unions at LG Energy Solution and LS Electric are reportedly led by the MZ generation or have a large proportion of members in their 20s and 30s. The MZ generation, emphasizing fairness and responsibility, is engaging in collective activities by focusing negotiations on their interests.

Union Formation Is Active, but Expansion Is Sluggish?

Overall, while there is a strong wave of union formation, there are differing views on whether unions themselves are expanding. According to the U.S. Bureau of Labor Statistics, the union membership rate in the U.S. last year was 10.3%, down 0.5 percentage points from 10.8% in 2020. This returns to the 2019 level. Since statistics began in 1983, when the union membership rate was about 20%, it has been steadily declining.

Union Membership Rate Trends in the United States (Source: The New York Times)

According to The New York Times (NYT), the union membership rate among federal, state, and local government workers in the U.S. has consistently remained in the mid-30% range since the 1970s, whereas the union membership rate among private-sector workers dropped significantly from 17% in 1983 to 6% last year. Professor Ruth Milkman of the City University of New York analyzed that the low union membership rate in the private sector is due to strong opposition from private employers and labor laws favoring employers.

With the COVID-19 pandemic overturning everything over the past two years and changing demands for organizational culture according to the times, union issues at home and abroad are rapidly evolving. It will be interesting to see what changes will be made going forward.

Editor's Note[Jjinbit] is short for 'Jeong Hyunjin's Business Trend' and 'Real Business Trend,' a corner that showcases trends in corporate management such as organizational culture and personnel systems. The emergence of the MZ generation, the expansion of remote work due to COVID-19, and digital innovation all require innovation in organizational culture. Based on analyses from major overseas institutions that have not received much attention until now, we will deliver fresh and differentiated information and perspectives.

This content was produced with the assistance of AI translation services.