Benefits of Being a Union Member

For this post, we are going to explore some of the benefits of being a union member – and why you should be one, too. This is a sister post to 10 Benefits of Being a Union Contractor. Here at The Wealthy Ironworker, we wanted to highlight the benefits both sides get by working with a union. What follows is not meant to be comprehensive; it is but the tip of the iceberg.

I should also mention that I will be speaking from a building trades perspective; I.e., Ironworkers, Electricians, Pipefitters, etc.

And, after this article, should you be convinced, feel free to reach out and I can get you connected to the right union. Without further ado, let’s dive right in.

Higher wages for a Union Member

Everyone wants higher wages -so, how do you get them?

This is the first and for good reason: often, when people are looking for either a career or a career change they look to what can make them some money. Many, after all, have families to support and who wants to willingly get into a career where they struggle to make ends meet? That is a classical example of “failing to plan is planning to fail.”

For example, this website states that union members make 18% more than their non-union counterparts. The Bureau of Labor Statistics reports that ” non-union workers earn just 85 percent of what unionized workers earn ($1,029/week vs. $1,216/week).”

The Guardian reports that the difference in pay is 10.2%, and, referencing a report, “by the joint economic committee of Congress and the House education and labor committee, unionized workers are also 18.3% more likely to receive employer-sponsored health insurance, and employers pay 77.4% more per hour worked toward the cost of health insurance for unionized workers compared with non-unionized workers.”

NPR reports that over the course of a lifetime, the difference between union and non-union is an astounding 1.3 million.

AND THIS IS ALL ON THE FIRST PAGE OF A GOOGLE SEARCH.

I have known so many individuals who have made good money while in their respective trade, trading their health, time, and labor for it. And, as far as I’m concerned, it’s been a long time coming for the wages and respect for tradesmen to be commensurate with the level of importance they bring to society.

The overall point is that being a union member has its perks – the first of which is higher wages.

Better Insurance for a Union Member

Health insurance is a huge benefit – and 3o+ million workers do not have any

According to Statista, at least 30+ million workers do not have some form of health insurance (although, I suspect it is much more than that for several reasons). The question remains though: what kind of health insurance do people have – and how good is it?

That’s a very nuanced question and one I’ve seen discussed a lot for years, now. I suspect entire articles could be written about this very thing. What I want to narrow down on, however, is the conversations I’ve personally had with so many people over the years – in and out of the trades. I’ve been amazed for years now how many have subpar insurance – IF they even have it. Why?

Because of medical bankruptcy.

Investopedia has the first two reasons for Bankruptcy as loss of income and then medical. American Bankruptcy Institute has it at number one. CNBC reports a staggering 66.5% of all bankruptcies are attributed to medical debt. Debt Hammer has a really informative website where you can see a lot of information about bankruptcies where they also say medical debt is the leading cause.

What’s more, Patrick Bet-David also talks about this – and how 72% OF THOSE BANKRUPTCIES ACTUALLY HAD MEDICAL INSURANCE!!

As I dug into the bankruptcy numbers, I was very surprised to discover that, per capita, 8 of the top 10 bankruptcies were in so-called right-to-work states. Conversely, 7 of the 10 lowest bankruptcy states were NOT right-to-work. Why does that matter?

Simple: Because non-union workers have significantly less paid towards health insurance. This website reports that – and I quote – “The Bureau of Labor Statistics (BLS) tracks the amounts per labor hour employers pay for health insurance. BLS reports that as of June 2019 (i.e. pre-COVID), union employers averaged paying $6.33 per labor hour for health insurance (up 100% from $3.16 in 2004) compared to nonunion employers paying $2.24 per hour as of June 2019 (up 66% from $1.35 in 2004) (US Department of Labor 2021).”

IF medical debt is the largest reason for bankruptcy (and it is), then it stands to reason you would want to get the best medical insurance you could get. The data – and experience (I’ve talked to so many people who had better insurance being a union member) indicate you would be better off joining a union.

Better Retirement for a Union Member

Retirement is something many do not think of – but is ABSOLUTELY important

According to BenefitsPro – which cites Penny Hoarder, a staggering 58 million Americans have no retirement at all. That’s concerning, to say the least. ADP highlights the SECURE 2.0 Act, passed in December 2022. Without going into too much detail, the act covers additional incentives and directions for employees and employers to increase retirement conditions. This lets you know the federal government understands the problem with so many Americans not having retirement – when retirement is upon you, someone either contributes to the economy or they are a drain. And those 58 Million mentioned earlier? They most certainly are a drain. Make no mistake: this is a significant and serious problem for America. Without a consumer base, how will democracy survive? Spoiler alert: it won’t.

You see, as Americans retire, they typically do not work a full-time job – and with some financial prowess (something MANY MANY Americans lack, by the way), it is hoped retirees have enough set aside to live comfortably.

If current conditions are any indicator, though, the ABOVE IS A STRETCH. Lending Club reports that a whopping 60% of Americans LIVE PAYCHECK TO PAYCHECK. Moreover, Fortune reports 57% of Americans cannot put their hands on $1,000 for emergency expenses.

The American Dream? Sounds more like the American Nightmare to me.

Enter unions.

Unions have pushed for better and greater retirement security for decades now. They have understood that for the continued existence of the middle class and democracy by extension, robust retirement was a must. Recall the SECURE Act 2.0 from before? America didn’t always have retirement problems; indeed, several decades before the creation of the 401k, pensions were the norm. Seeking to transfer risk, increase profits, and erode unions, anti-union advocates sought a transition from a defined benefit (pension) to a defined contribution (401k) retirement plan. I won’t take the time to elaborate in this post; instead, you can check out the following articles I’ve written for more information.

Defined benefit vs Defined Contribution

The ubiquitous 401k, Business, and American Wealth

The Department of Labor reports that 66% of non-union workers have access to retirement plans vs 93% of their union counterparts.

The Bureau of Labor Statistics reports that 85% of union workers participated in retirement plans whereas only 51% of non-union did.

What’s more, most young people do not seriously consider retirement – something anti-union advocates capitalize on all too well. Time passes people by though and rather than prepare, retirement happens upon them faster than expected. And by the time that occurs?

EVERY SINGLE PERSON I’VE EVER TALKED TO – WITHOUT DEFAULT – HAS TOLD ME THEY WISH THEY HAD SAVED MORE FOR RETIREMENT.

Do not dismiss retirement or health insurance when you are young; instead, I implore you to think of your family, your future, and plan accordingly.

Greater Safety on the Jobsite for a Union Member

Unions have always promoted greater safety conditions – and continue to do so

Labor history is rich with examples of just how unsafe the construction industry used to be. Indeed, it’s lamentable just how little most really know – they take it all for granted. There are various websites that corroborate this, too. For example, this website is a law firm detailing unsafe construction industry practices. Science Direct mentions barriers to implementing safety cultures – many from management failure. Blackridge Research also discusses site safety measures and their implementation. What’s more, I have been involved in safety for a long time now – and it amazes me how many people complain about the very safety mechanisms designed to protect them. To that end, I have a bit of advice someone once told me – and I now tell you:

EVERY safety rule was written in blood. Be glad that it isn’t yours.

Unions have always pushed for greater safety of job sites. They were a driving force behind OSHA, continue to push for greater safety overall – and are a driving force for lower accidents and deaths on the job. The DOL mentions how union contractors were 19% less likely to have citations and had 34% fewer citations overall when compared to their non-union counterparts.

Over at Scholars.org, they point out how unions are safer.  Occupational & Environmental Medicine, simply looking at data, found – and I quote – “1% decline in unionisation attributable to RTW is about a 5% increase in the rate of occupational fatalities. In total, RTW laws have led to a 14.2% increase in occupational mortality through decreased unionisation.”

You can read my article – Right to Work Part 3:Safety – from 2021 where I dig into the safety aspect unions bring out in greater detail.

All in all, unions have a more robust safety culture with members being better trained and some even become safety managers for the contractors they work for. I was one, myself. This is a benefit for sure.

Greater Protections via Collective Bargaining Agreements (CBA)

Collective Bargaining Agreements (CBAs) provide workers with greater protection

People take contracts for granted ALL THE TIME. Seriously, think about the contracts you are currently a party in: mortgage, cell phone service, insurance, car payments – chances are, your life involves numerous contracts.

This begs the question – what do contracts do? They are agreements that spell out the rights and responsibilities of each party. For example, if you have a mortgage, you agree to pay your monthly payment in exchange for the money you’ve borrowed to purchase the house. Likewise, when you have an agreement with the power company, you agree to pay them a fee in exchange for the power generated and delivered to your home for use.

Contracts are not mystifying nor are they foreign, either: you are part of numerous contracts whether you are aware of it or not. Why shouldn’t you be protected by a contract that governs how you – an employee – are treated by and entitled to protection from your employer?

I’ll tell you why: because without it, your protections are limited significantly.

By now I can hear someone say “Wait a minute: there are laws that provide protection for me in the workplace.” The premise of providing work for pay and that in and of itself is a contract is flimsy at best – AND, is extremely one-sided – not in your favor, I might add. Let’s explore that a bit by taking a look into “At will” employment.

At-Will Employment

National Conference of State Legislatures describes At-Will employment: “At-will means that an employer can terminate an employee at any time for any reason, except an illegal one, or for no reason without incurring legal liability. Likewise, an employee is free to leave a job at any time for any or no reason with no adverse legal consequences.”

They continue, elaborating on the ramifications of At-Will employment by saying that “At-will also means that an employer can change the terms of the employment relationship with no notice and no consequences. For example, an employer can alter wages, terminate benefits, or reduce paid time off. In its unadulterated form, the U.S. at-will rule leaves employees vulnerable to arbitrary and sudden dismissal, a limited or on-call work schedule depending on the employer’s needs, and unannounced cuts in pay and benefits.” (emphasis mine)

Collective Bargaining Agreement (CBA)

Do you know what keeps an employer from doing this? A contract. For the purposes of this article, it’s called a Collective Bargaining Agreement (CBA). SHRM – the Society for Human Resource Management, explains what a Collective Bargaining Agreement (CBA) is: “A collective bargaining agreement (CBA) is a written legal contract between an employer and a union representing the employees. The CBA is the result of an extensive negotiation process between the parties regarding topics such as wages, hours, and terms and conditions of employment.”

It is a written contract entered into between an employer and the union that represents you. It spells out what the employer can and cannot do. It provides far greater protection than the law provides under At-will employment – which is no real protection, anyway. Employers may not be able to get rid of you for illegal reasons but they can easily make something up – and the burden of proof is on you to prove they have violated the law. Having a contract (CBA for those of us in the construction industry and building trades) provides additional protection I would not want to go without.

Additionally, how many people when presented with paperwork to sign just do so without reading EVERYTHING –  line by line and word for word? How about the terms and conditions for every single app you use, or website you visit, or the new hire paperwork when starting with a company? I suspect MANY people just sign their name without reading – I KNOW many people just blindly sign away.

Let me give you a real-world example just two weeks ago.

As a CWI (Certified Welding Inspector), I routinely give weld tests. We have the welders read and sign a single piece of paper that details when I need to inspect their welds during the process. I had to fail one guy because, surprise surprise, he didn’t read what he signed – and welded everything without allowing me to inspect. I took him over the paper he had signed just an hour before and calmly pointed out how he should read what he signs – EVERY TIME – and without exception.

I wish my example was an anomaly but I know it isn’t: it’s commonplace. Employers know this, too. Reputable companies will seek to employ workers – scoundrels will seek to exploit them. Know the difference, understand the significance of contracts, and join a union.

Greater Access to Training for a Union Member

Unions have – and continue to – promote training

Let me say this right out front: the more you know, the more marketable you are. As construction workers, the irony is that the second we walk on a job, we begin to work ourselves out of one. It’s the nature of the business. The more you are able to do the more valuable you become. Can’t weld? Unable to do another facet of your trade? You aren’t as valuable as others who can do much more than you. It’s not harsh – it’s the game we play.

Registered Apprenticeship Programs (RAPs)

Registered Apprenticeship Programs (RAPs) have been the gold standard for decades now. This model, coupled with On the Job Training (OJT), has produced substantial numbers of qualified journeymen and women over the years – and continues to do it this very day. The Department of Labor (DOL) via Apprenticeship.gov, explains that “Registered Apprenticeship is an industry-driven, high-quality career pathway where employers can develop and prepare their future workforce, and individuals can obtain paid work experience, receive progressive wage increases, classroom instruction, and a portable, nationally-recognized credential.  Registered Apprenticeships are industry-vetted and approved and validated by the U.S. Department of Labor or a State Apprenticeship Agency.”

They are governed to ensure quality and adequate standards – it takes time to churn out qualified apprentices/journeymen, after all. The last thing we need is a job site full of unqualified people because the standards have been eroded. As such, unions fight to ensure RAPs are robust, quality driven, and shored up for continued success.

Journeyman Upgrade Training

And, with being a union member, there is continual journeyman upgrade training  – sometimes on demand, and other times it’s always available – depending on various circumstances. You can always try to learn to weld, become better at using various tools of the trade – even take updated safety training. Perhaps there is a job coming up that deals with a lot of stainless – or maybe even installing handrail?

What about unconventional training – things many do not associate with a trade/union? IWs have Foreman Training, Superintendent Training, Bluebeam, Advanced Layout and Total Station, Estimating, Change Orders, Microsoft, Marketing and Business Development, How to Start a Business – and more!

A lot of people think that once they enter their respective trade, they do not need continual training – including companies. This simply isn’t true. Things change, industries evolve, new technology is created, job site conditions necessitate new approaches; in short, training is something that should be viewed as never-ending.

Unions – which are nothing more than their respective members  – intuitively know this. As such, they seek continual training – and you should too – by becoming a member.

A Robust Network a Union Member gets for Work/Opportunities

There are local unions across North America for members to connect with

Unions have a wide network – via the local unions – to ensure their contractor base has qualified employees. No matter what trade you are in – Ironworker, Pipefitter, Electrician, Crane Operator, etc. – there are locals across North America. Those members each have a Collective Bargaining Agreement (CBA), that governs how they and their respective employers interact and work together. Members of one local union can “boom out” – the term used to travel to another local and perform work for a contractor in another local union’s jurisdiction. This network is robust and vast – companies and members have used it for decades now – and you can, too – by becoming a member of a union.

What’s more, there is SO MUCH WORK out there. Between infrastructure investments, onshoring of manufacturing (it’s a thing, by the way), and trying to replace those who are retiring much less the explosive growth the industry is wanting to do – all of that and more have created a very interesting dynamic. There is ample opportunity and having a robust network like local unions is advantageous.

What’s more, EVERYONE feels the pinch of the skilled labor shortage; non-union and union alike. Since unions have a network for members and contractors to leverage, it stands to reason as the shortage lingers on, the network becomes more valuable.

I know people who use this network on a consistent basis, too. Many like to travel and they can make a substantial amount of money while working shutdowns, ramp-ups, and large projects. Likewise, there are smaller contractors who use the network as well – from recruitment to new business and everything else in between, being a union member pays off – and is just one more reason you should become one.

Conclusion

The above are just some of the reasons you should become a union member

As we wrap this article up, I want to challenge your preconceived notions about what a union is, the benefits it provides the membership, and encourage you to seriously consider becoming one. Additionally, some long-term planning for your family and those you are responsible for is warranted, as well. Lastly, remember that money isn’t everything – quality of life, job satisfaction, and various other benefits – all of these and more beg you to seriously consider and question what you are getting in exchange for your labor. You can NEVER get your time back – once it is gone it’s gone for good. Better that you get paid more – and provide benefits for your spouse and children – for the time you sacrifice.

And if you need to get in touch with a union, feel free to reach out – I’ll get you connected. Work well, my brothers and sisters!