Labor Unions NAICS 813930

Jul 3, 2025 - Provisions Targeting Federal Government Unions Removed From One Big Beautiful Bill

• The One Big Beautiful Bill legislation passed by the US Congress no longer contains measures targeting federal labor unions, federal workers’ retirement benefits, or federal civil service protections, according to the Government Executive web site. The US House of Representatives' version of the legislation included policies that would have made federal employees contribute more of their paychecks toward their Federal Employees Retirement System pension while reducing the ultimate value of those benefits, according to Government Executive. Another proposal would have charged a 10% processing fee for elective payroll deductions, which would have targeted federal employee unions. Federal agencies would have been required to charge labor groups for their use of agency property and officials’ use of official time. Other proposals would have eliminated the FERS supplement for many federal workers who retire before Social Security kicks in at age 62 and would have required all new federal workers to elect between serving as at-will employees with no civil service protections or paying an additional 5 percentage points (9.4% of their basic pay) toward FERS. A proposal to base federal employees’ FERS annuity payments on the average highest five years of their salary, rather than the current High-3 formula, was also removed.
• Trump administration tariffs on foreign goods received mixed support from the auto industry, a key component of the US labor movement, according to Fox News. The United Automobile Workers Union (UAW) praised Trump's "aggressive" tariff strategy and defended the president from criticism that his tariffs will upend the economy. Some auto industry experts are skeptical of the president's actions. "You just can't relocate automotive production and the supply chain overnight," said John Bozzella, who heads the Alliance for Automotive Innovation, according to Reuters. "That's the challenge and the dilemma: auto tariffs in North America could end up increasing costs on consumers before jobs come back to the country."

• Nearly 200 large union contracts covering more than 1.5 million workers across a many of industries are set to expire in 2025, according to Bloomberg Law. An early test for unions and for the incoming Trump administration was avoided when the union representing 45,000 longshoremen at docks along the US East and Gulf coasts and port operators tentatively agreed to a new six-year contract in early January. Other workers may be emboldened to strike based on the record-breaking wages and benefits secured in contracts from the last few years, such as with Detroit’s Big Three, the Boeing Company, and Hollywood production studios, according to Bloomberg Law. Workers may also push for new job protections from emerging technology like artificial intelligence.
• Labor union industry employment and average wages for nonsupervisory employees increased slightly during the first five months of 2025, according to the US Bureau of Labor Statistics. Labor union industry revenue is forecast to grow at a 4.23% compounded annual rate from 2025 to 2029, comparable to the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Labor unions generate revenue by charging dues to members.