Summary

The article discusses the resurgence of labor strikes in the United States, driven by worker dissatisfaction with wage stagnation, corporate greed, and the perceived injustice of essential workers being underpaid during the pandemic, while corporations enjoyed record profits and gave executives hefty compensations.

Abstract

The article titled "Companies Are Losing the Battle Against Workers, And They Want You to Pay For It" highlights a significant shift in the labor landscape, with a notable increase in strikes across various industries. Workers, particularly those deemed essential during the pandemic, are striking in record numbers, demanding better pay, improved working conditions, and fair retirement benefits. The article references the historical context of the 1981 air traffic controllers' strike and President Reagan's response, which set a precedent for weakening union power. Fifty years later, unions are making a comeback, achieving significant victories and framing their actions as a stand against corporate greed. The article points out that while corporations have seen soaring profits and executive pay, average worker wages have decreased, leading to widespread frustration and action. The success of these strikes has led to tangible improvements for union members, and there is a growing call for consumers to also challenge corporate practices that lead to inflated prices and excessive profits.

Opinions

The author suggests that the traditional dollar store pricing model is eroding, with items now costing between $1 to$ 5, reflecting broader economic trends.
There is a critical view of how corporations have capitalized on the pandemic and supply chain issues to increase prices and profits, a phenomenon referred to as "greedflation."
The article expresses that the firing of air traffic controllers by President Reagan significantly weakened unions and set the stage for the current labor struggles.
It is implied that there is a moral imperative for workers and consumers to unite against corporate greed to improve living and working conditions.
The author believes that the recent wave of strikes is a direct response to the disparity between corporate profits and executive compensation versus stagnant worker wages and the essential role workers played during the pandemic.
The article conveys that the success of strikes in securing better conditions for workers is putting pressure on corporations to change their practices.
There is an opinion that consumers should be more aware and active in questioning corporations about their pricing strategies and the source of their record-high profits.

Companies Are Losing the Battle Against Workers, And They Want You to Pay For It

Companies hooked on high prices.

Photo by Joshua Rawson-Harris on Unsplash

Have you visited any dollar store lately? Nothing is a dollar anymore. Every item is now priced between $1 to $5.

Let me explain why this is happening.

On August 3, 1981, about 13,000 of the 17,500 Professional Air Traffic Controllers Organization (PATCO) members, a United States trade union, staged a walkout and strike.

This move threw the country's air travel into chaos and challenged President Ronald Reagan's ability to run the country, especially since President Reagan attempted to resolve the issue during his campaign by sending a letter to Robert E. Poli, the new president of PATCO.

The letter detailed President Reagan's desire to help the air controller, "I will take whatever steps are necessary to provide our air traffic controllers with the most modern equipment available, and to adjust staff levels and workdays so they are commensurate with achieving the maximum degree of public safety." The letter addressed the air controller's four main concerns: better pay, more advanced equipment, a reduced 32-hour four-day workweek, and a better benefits package for retirement.

President Reagan attempted to resolve the issue with PATCO representatives, but they couldn't agree on anything. Reagan felt the strike threatened his leadership and national security and made a powerful decision. He fired all striking air traffic controllers.

The firing of the air traffic controllers significantly impacted the labor movement in the United States. It weakened unions and made it more difficult for workers to strike successfully. It has taken the union 50 years to recover.

Union workers are angry.

Fifty years later, union workers are uniting and striking again.

This year, The country experienced a wave of strikes unlike anything we have seen in a very long time. Cornell ILR's Labor Action Tracker reported more than 354 strikes in 2023 involving roughly 492,000 workers, four times the number of workers involved in strikes for the same period in 2022. These strikers led unions to significant bargaining victories and improved work environment, salaries, and retirement benefits for all members.

These victories were led by angry union workers. Their anger is based on the fact that the least-paid workers in our country were deemed essential during the pandemic. They had to show up to work and make less money than other non-essential employees who sat at home and collected their free money.

Simultaneously, corporations got tax breaks and stimulus funds from the government, which didn't improve workers' conditions. This business move skyrocketed corporate profits, which made employees and consumers angry at all corporations amid price increases and wage stagnation. So, corporations are facing enraged consumers and angry employees, a war that corporations can't win.

This anger led to more strikers and more unions winning.

Union leaders no longer frame their strikes as trying to get more employee benefits. They frame them as a statement against corporate greed and corporations. This move united employees and consumers at the same time.

Why, you might be asking, why the anger? Consider this: The Guardian reported, "The Big 3 automakers, Ford, General Motors and Stellantis, made $250bn in profits from 2013 to 2022, an increase in 92% while average auto worker wages dropped 19.3% during the same period. Their three CEOs have received about $1 billion in compensation since 2010." Think about that: car prices, executives' compensation, corporate profits, and cost of living increased dramatically while the average employees made less money.

This statement made it easy for the United Auto Workers Union (UAW) to unite their 145,000 General Motors, Ford Motor, and Chrysler workers and convince them to strike. The Wall Street Journal reported, "The union's targeted strikes hit nine U.S. factories and dozens of parts distribution centers, and they involved more than 45,000 workers." So, this strike improved their working condition, raised their pay by 25%, improved retirement benefits, and reinstated cost-of-living raises.

The United Auto Workers Union wasn't the only union that gained by striking. Screen Actors Guild-American Federation of Television and Radio Artists strike increased their pay by 11 % for this year and 3.5 % for the next year. Air Line Pilots Association unions and the Allied Pilots Association strike improved their working conditions and increased their pay between 34% to 40% or more over the terms of the new agreement.

Corporations cried about rising costs to increase prices.

As you see above, strikes are working; employee conditions are improving dramatically. Now, how can consumer unite to improve their living conditions? Pay increases benefit consumers because workers are consumers, but consumers need to voice their opinions against corporate greed.

Companies used the pandemic and supply chain shortage to increase their prices. It is not a secret that corporations blamed inflation for price increases, but inflation doesn't tell the entire story. Greedflation does.

Corporate profits reached an all-time high this year, and many companies saw profits hit record highs. Consumers need to ask executives if companies are struggling with costs and supply chains so much. Where are these billions in profits coming from?

This week, The New York Times reported that companies used the disruption to supply chains and raised their prices more than they needed to cover costs. Now, they are experimenting with keeping them there to support fatter profit margins, and the consumer is the victim.

As I write this article, consumers continue to feel the pain from the pandemic and supply chain disruptions. To compensate for revenue loss caused early in 2020, companies and retailers used the pandemic to create record-setting profits by forcing consumers to pay more for their basic needs.

What consumers thought was a temporary price adjustment has become the new norm. It is time for consumers to unite; enough is enough.

Your thoughts.