U.S. Treasury Report: Unions Benefit Workers and the Overall Economy

Internal NFFE News

October 16, 2023

As part of initiatives led by the White House Task Force on Worker Organizing and Empowerment, the U.S. Treasury has released a comprehensive report regarding the role that labor unions play in the American economy. The report found that middle-class workers benefit substantially from unionization, as does the overall economy.

The research concluded that unions raise the wages of their members by 10 to 15 percent and improve benefits like retirement plans, grievance policies, and workplace schedules. Another critical finding was that unions can significantly reduce income inequality, contributing to economic growth and resilience. Further, unions boost productivity by improving workplace environments and engagement with management.

“President Biden’s Executive Order on Worker Organizing and Empowerment called on each federal agency to take steps to improve opportunities for building worker power, and I am proud the Treasury Department is contributing to this effort,” said Janet Yellen, Secretary of the Treasury. “Going forward, I hope research like this report supports continued efforts to build worker power and bring about much-needed gains for the middle class and for the economy as a whole.”

“The Treasury report proves that unions are an incredibly powerful tool for workers, both in the federal government and the private sector,” said NFFE National President Randy Erwin. “Despite union bashing campaigns led by anti-worker corporations and media, working Americans are once again realizing the strength they have through organizing and solidarity. President Biden set out to be the most pro-union U.S. President and I believe he has lived up to that promise. NFFE members and workers across the country have benefitted from his Administration’s efforts to support unions and the middle-class.”

 

U.S. Treasury: Labor Unions and the Middle Class

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