"They don't have exceptional leverage because there's a lot of competition," Katz said. But he said these workers face greater threats from competition in the automotive industry, including from factories with non-unionized workforces operating in the American South, which undercuts UAW's bargaining power. Katz said autoworkers on assembly lines can't be easily replaced either, and they have some leverage from solidarity within their union's ranks. "So that's part of their special circumstance." It can't move abroad and outsource production to foreign sources of supply," Katz said. "Those two are cases where capital is not mobile - it can't move to the non-union South and operate as many companies can. Pilots have a specialized skill-set that can't be easily substituted UPS is doing well enough, despite competition, that when the company raises workers' pay and benefits, it doesn't substantially reduce employment. While UPS workers and pilots are seeing major pay raises, not all unions have the same type of leverage, said Harry Katz, professor of collective bargaining at Cornell University.īargaining power for UPS employees and pilots at major airlines stems from the fact that they're not replaceable, Katz said. "A part-timer now would need to make in the ballpark of $25 to have the same buying power." But UAW might not have "exceptional leverage" "I got paid $8 an hour in 1991," Hancock told NPR, referring to what she earned when she was first hired at UPS. Jennifer Hancock, a part-time package sorter at UPS in Richmond, Virginia, said big pay raises are crucial to keep up with inflation. The package delivery giant posted a profit of more than $13 billion in 2022. The Teamsters union similarly highlighted UPS' profits throughout the COVID-19 pandemic as they pushed for higher wages for rank-and-file union members. "This may be a four-year deal, but nothing's happened since January 2019 in pay." ![]() "It's been a long time since there's been any financial gain," Tajer said. The last time pilots got a raise, he said, was in 2019. ![]() In August, the Allied Pilots Association, which represents 15,000 American Airlines pilots, successfully pressured the airlines to increase pilots' pay by more than 46% over four years, with an immediate pay raise of more than 21%.ĭennis Tajer, an American Airlines 737 pilot and spokesperson for the union, said the pay bump accounts for years of stagnant wages. ![]() Teamsters general president Sean O'Brien said the contract "sets a new standard in the labor movement." the Detroit Big 3 automakers Sky-high CEO pay is in focus as workers everywhere are demanding higher wagesĪfter months of contentious negotiations that led 340,000 UPS workers to the brink of a strike, the Teamsters union in July secured a 48% average total wage increase, over the course of the five-year contract, for existing part-time workers.
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