close
close

Government policy forces higher union raises – Orange County Register

President Joe Biden and Gov. Gavin Newsom take the stage at Long Beach City College on the final day of the anti-recall campaign in Long Beach, Monday, Sept. 13, 2021. (Photo by Brittany Murray, Press-Telegram/SCNG)

Want to know who gets good raises? Look for the relationship label.

A new Goldman Sachs study for the first quarter of 2024 found that pay for private sector union workers rose 6.6% from a year earlier, “once again significantly outpacing pay growth for non-union workers, which also increased but to a more moderate level 4.1%.

Under President Biden, labor unions are experiencing a renaissance. “New Yorker” from April 24 reported “many academics and labor officials have come to view Joe Biden as the most pro-union president since Franklin Roosevelt, and he proudly accepted the nomination.”

American progress in February quoted Ford’s new, gigantic battery factory in Tennessee as an example of President Biden’s pro-worker policy. The plant received a taxpayer-guaranteed loan from Biden Act on infrastructure investments and employment 2021 after Ford signed labor agreements under the project guaranteeing high union wages. This could be good for the recipients of federal dollars and these particular union workers. But the 2021 bill’s $1.2 trillion price tag is one reason inflation has spiked so much across the country in recent years.

Raymond Sfeir, director of the Economic Research Center. A. Gary Anderson at Chapman University, points out that one reason why union workers’ wages are currently rising faster is that their contracts usually extend for several years, and contracts expire before Biden’s inflation. era. In turn, wages for nonunion workers rose faster than union workers between 2021 and 2023 because their contracts are shorter and can be renegotiated more quickly to reflect inflation. Ultimately, however, he stated: “In companies with trade unions, the raise will be higher because of the power that the trade union has.”

The Goldman Sachs review only looked at jobs in the private sector. Although most American workers are not in unions, about half of those who are work for the government.

Public sector wages in California have skyrocketed in recent years.

Last May, the United Teachers of Los Angeles approved a bill titled: contract with the Los Angeles Unified School District raising wages by 21% by 2025. It’s certainly not because the quality of teaching has improved so much. Most of the students on their watch are not meeting grade-level standards in math and English.