The U.S. Treasury Department has released an in-depth report asserting the critical role labor unions play in bolstering the American economy and enhancing the well-being of the middle class, according to a department press release.
Treasury Secretary Janet L. Yellen, in a press call with Vice President Kamala Harris, emphasized the findings. "Unions raise the wages of their members by around 10 to 15 percent," Yellen ssaid. She further elaborated that unionization leads to "better workplace grievance systems and improved workplace safety," which she noted are "critically important to workers' well-being."
The U.S. Treasury Department released an unprecedented report on August 28, 2023, conducted by its Office of Economic Policy, that delves into the role labor unions play in strengthening the American economy. This report is a part of over 70 actions that the White House Task Force has implemented on Worker Organizing and Empowerment, which is chaired by Vice President Kamala Harris, according to a press release from the Treasury Department.
According to the press release, the Treasury Department's report makes several critical observations: Economic Stability for the Middle Class: The report finds that unionized workers see a 10-15% increase in their wages, along with improved fringe benefits such as more stable retirement plans and workplace procedures. These improvements have a significant impact on the financial stability and overall well-being of the middle class.
Wider Economic Effects: According to the press release, unionization has a 'spillover effect' that benefits even those workers who are not part of any union. The competition among firms tends to raise wages across the board, and increased safety norms set by unions can uplift entire industries. Reduced Inequality: The report highlights that unions play an essential role in reducing racial and gender wage gaps by encouraging equitable wage practices. Contribution to Economic Resilience: Labor unions contribute to the broader economy by lessening overall income inequality, thereby making the economy more resilient, the press release states.
Consistent with its long-standing focus on workers' rights and a strong middle class, the Biden-Harris Administration has endorsed the role of labor unions as vital contributors to a thriving economy, aligning with President Biden's earlier Executive Order on Worker Organizing and Empowerment.