Harris and Yellen Highlight Economic Benefits of Unions in New Treasury Report, According to Reuters

U.S. Leaders Highlight Union Benefits Amid Economic Overhaul

On Monday, U.S. Vice President Kamala Harris and Treasury Secretary Janet Yellen held a joint press call to emphasize the advantages of union membership, unveiling a new Treasury report indicating that union members earn 15% more than their non-union counterparts.

The White House has been advocating for union support and membership expansion as part of President Joe Biden’s strategy to reform the U.S. economy, address inequality, and ensure more corporate profits benefit the middle class.

Political motivations also play a role; union voters were pivotal in Biden’s success during critical battleground states in the 2020 election. Labor unions and worker groups are anticipated to have a significant impact on grassroots efforts for the Democratic Party in the upcoming 2024 election.

According to the report, unions enhance wages by 10 to 15% in sectors where they establish new affiliations, as well as improve fringe benefits, retirement plans, predictable scheduling, and workplace grievance procedures.

While the report did not provide a direct analysis of the overall economic impact of union workforces, it noted that by raising wage levels and improving working conditions, unions significantly contribute to middle-class financial stability, fostering a stronger and more resilient economy.

Harris emphasized the merits of union membership, stating, “Union workers earn 15 percent more in pay than non-union workers in the same occupation. Union workers also receive retirement benefits, paid sick leave, life insurance, and childcare discounts at a much higher rate.”

The backdrop for this renewed focus on union involvement includes a competitive job market, heightened risks at job sites during the pandemic, soaring housing and food costs, technological disruptions, and the expiration of cyclical contracts—all occurring alongside union-friendly policies from the Biden administration. Despite these developments, union membership in the private sector in the U.S. remains at historically low levels.