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The Union Advantage in Pay and Benefits

Union workers earn more

Wages and benefits for the average union worker in the private sector totaled $37.16 per hour in March 2010, compared to $26.67 an hour for the typical non-union worker.

Wages and salaries higher for union workers …

In March, the average union worker in the private sector earned $22.90 per hour in wage and salary income, while the average non-union worker earned $19.21 per hour. That’s a union advantage of $3.69 per hour, or $7,675 per year for a full-time, full-year worker.

… But benefits are the biggest union advantage

Benefits, though, are where the biggest union advantage lies. The average union worker in the private sector receives $14.26 per hour toward their benefits package while their non-union counterpart receives only $7.46 per hour.

Retirement and health benefits more widespread for union workers

After years of service, workers deserve a secure retirement. Unfortunately, only 51 percent of non-union workers receive retirement benefits through their employer, through either a traditional pension or a 401(k) account. In stark contrast, 86 percent of union workers have employer-provided retirement benefits.

Only about half (52 percent) of non-union workers receive health care benefits through their employer. That compares with 79 percent of union workers.

Union advantage holds across occupations and industries

Blue-collar workers in manufacturing enjoy a substantial advantage from union representation – but so do workers in non-manufacturing settings. In fact, the Bureau of Labor Statistics’ report, “Union Members - 2009,” shows that the union advantage holds across occupations and industries.

For example, union workers in protective service jobs (such as security guards and corrections officers) earn median pay of $992 per week, compared with $611 for non-union workers. The union premium also exists in office and administrative support occupations where union workers earn $782 per week compared to $595 per week for non-union workers.

Sources:

Bureau of Labor Statistics, “Union Members - 2009” http://www.bls.gov/news.release/pdf/union2.pdf

Bureau of Labor Statistics, “Employee Benefits in the United States, March 2008”

http://stats.bls.gov/news.release/pdf/ebs2.pdf

Bureau of Labor Statistics, “Employer Costs for Employee Compensation, September 2009”

http://www.bls.gov/news.release/pdf/ecec.pdf

If you are interested in organizing your workplace with the UAW, contact our Organizing Department or call 1-800 2GET-UAW (1-800-243-8829). You'll be connected to (or get a call back from) a UAW organizer who can answer questions and tell you what it takes to organize a union at your workplace.If you're in Canada, call 1-800-387-0538 to reach UAW Local 251, a Canadian UAW local union that helps Canadian workers organize.