Labor Unions
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 12,200 labor unions in the US promote the interests of organized labor and union employees through collective bargaining. They rely on membership dues and investment income for revenue. Local chapters typically remit a percentage of dues to national organizations. Unions typically set aside a percentage of dues to support various funds. Most unions have a general fund to cover basic operating expenses. A strike fund assists members in the event of a strike. Other types of funds include communications, education, scholarship, and emergency operations.
Highly Regulated Operations
Labor unions are heavily regulated by numerous government organizations, including the Department of Labor (DOL) and the Federal Election Commission (FEC).
Resistance From Employers
Foreign competition and the ensuing pressure to reduce labor costs have strained relations between employers and unions.
Industry size & Structure
The average labor union operates out of a single location, employs 8-9 workers, and generates about $1 million annually.
- The labor union industry consists of about 12,200 organizations that employ about 109,000 workers and generate about $16 billion annually.
- The industry is concentrated; the ten largest unions account for over 90% of total union membership. The industry includes national and local chapters of unions.
- Large unions include the National Education Association (NEA), Service Employees International Union (SEIU), the American Federation of State, County, and Municipal Employees (AFSCME), and the International Brotherhood of Teamsters (IBT).
Industry Forecast
Labor Unions Industry Growth
Recent Developments
Nov 5, 2024 - High Profile Wins Boost Organizing Activity
- High-profile labor union wins in 2024 may intensify labor organizing efforts that, while harming business profitability, may reduce employee turnover over time, according to Moody’s Ratings. Labor unions have grown more assertive this decade, according to Moody’s. The number of work stoppages involving 1,000 workers or more increased to 33 in 2023, the highest level since 2000, according to the US Bureau of Labor Statistics. Organized labor has “won record contracts in traditionally unionized sectors like auto manufacturing and is making inroads where unions have tended to be few and far between,” Moody’s analysts said, noting gains at Starbucks and the food services industry.
- More than 63,000 public employees across Florida have had their labor unions fully decertified and shuttered by the state since a law requiring public labor unions in Florida to have at least 60% of members paying dues in order for a union to be recognized went into effect in 2023, according to WLRN Public Media. A total of 54 public sector unions have been legally terminated because they do not meet requirements of the new law, according to state filings. Dozens of unions are trying to stay certified after failing to meet the 60% threshold, according to WLRN Public Media, but the percentage of workers represented by unions will likely shrink in the coming months and years.
- Labor unions are increasing efforts to reach and retain immigrants who may bolster a US workforce that would otherwise be set to decrease as the baby boomer generation retires, according to Reuters news service. Techniques include partnering bilingual workers with new hires and distributing flyers about apprenticeship programs in Spanish and other languages, said Dorsey Hager, a union official who sits on the Columbus/Central Ohio Building & Construction Trades Council. The increase in the number of available workers from 2021 to 2023 was the fastest two-year jump this century, with roughly half the growth coming from people born elsewhere, according to the US Bureau of Labor Statistics.
- Labor union industry employment decreased slightly while average wages for nonsupervisory employees increased slightly during the first nine months of 2024, according to the US Bureau of Labor Statistics. Labor union industry revenue is forecast to grow at a 3.2% compounded annual rate from 2024 to 2028, slower than 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.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.