What role do labor unions have in today’s economy?
Unions are less relevant in the workplace, more influential in politics
by Michael J. Reitz
Labor unions have long played an important role in the American workforce. At their best, they advocated for employee rights, workplace safety, and wages, providing camaraderie and a sense of belonging when legal protections for workers were much weaker.
In recent decades, however, the advantages of organized labor have become less clear. Federal and state laws have codified worker protections and benefits. Minimum wage laws, workplace safety rules, accommodations for growing families, rules for employment benefits and retirement, anti-discrimination rules — these are widely available to American workers regardless of union membership.
There’s also been a dramatic shift in the composition of unions. The United Auto Workers union now represents 100,000 men and women who never build a single car but instead work on college campuses. In fact, about 25% of the UAW’s members work in higher education, not in automotive plants.
Private sector unionization is shrinking nationwide. In 1980, one in five private sector workers was a member of a union, in industries such as manufacturing, electrical, trucking, hospitality, and retail. Today, according to the latest numbers from the U.S. Bureau of Labor Statistics, only 5.9% of private sector workers are union members.
As a result, unions increasingly rely on government workers for their members — which would come as a surprise to Franklin D. Roosevelt and generations of pro-labor politicians who opposed even the idea of allowing public servants to organize. Public sector workers (state agencies, teachers, municipal workers, police) have enjoyed relatively steady rates of membership over the last 40 years. Today, 32.2% of government employees are union members, many of whom are protected by civil service rules.
Unions as political piggybanks
Labor leaders increasingly focus on developing and flexing political clout, aided by the billions they collect from workers. According to the Commonwealth Foundation, a free-market think tank in Pennsylvania, the four largest government unions in the country spent a stunning $915 million on elections and activism in 2024, mostly funded by union dues. Only 25% of the spending from these unions went to “representational activities” — contract negotiations and other activities traditionally associated with union organizing and support.
Unions heavily favor Democratic political candidates and progressive causes. Nearly 96% of union PAC spending favored Democratic candidates, according to an analysis of the political spending of the four largest public employee unions in the 2021-22 cycle. Unions’ lopsided political spending fails to align with the actual views of union members; the Pew Research Center found that four in 10 union members identified as Republican ahead of the 2024 election.
This violates freedom of association. Unions rely on a coercive business model to get their political influence. In states that do not have a right-to-work law, such as California, Illinois, and New York, private workers can be forced to pay union dues as a condition of employment. Even in right-to-work states, unions negotiate monopolies so that workers in a unionized company must be represented by the union in power. Whether in the union or not, their workplace conditions, pay, and benefits are often controlled by a union contract.
People favor unions but don’t want to join
Political observers were surprised when a 2024 Beacon Poll showed Tennesseans had positive feelings about unions. When asked, more people viewed unions favorably than unfavorably, and new polling data shows that they still do today. In the latest Beacon Poll, 58% say they view labor unions as “very” or “somewhat” favorably.
But the actual, revealed preference of Tennessee employees is much different — in 2024, only 4.6% of Tennessee workers were union members, with only 3.2% in the private sector.
This sort of disparity is seen in national surveys as well. A Gallup poll released last Labor Day found that 68% of Americans approve of labor unions. And yet union membership is at historically low rates, with fewer than one in 10 workers joining a union.
People have positive feelings about unions, but they feel differently about forced unionism. The latest Beacon Poll also asked whether workers should be forced to join a union or pay dues as a condition of employment, and 82% said workers should be free to choose.
What’s the ideal unionization policy?
The right approach for policymakers is neutrality. Government should be neutral in its treatment of labor organizations. Unions should be legal, voluntary associations — no more mandatory than the Rotary Club, a chamber of commerce, or 4-H. Workers who see value in joining should be free to do so. Those who do not should be equally free to decline.
Tennessee has taken laudable steps toward guaranteeing worker freedom and union neutrality. From adopting right-to-work nearly 80 years ago to adding right-to-work to its constitution in 2022, Tennessee stands as an example for other states.
Unions may still have a role to play in today’s economy, but only if they adapt. That likely means less coercion, less partisan politics, and more focus on serving workers directly — as professional associations, training providers, or benefit coordinators. If unions want stronger support, they should earn it, not mandate it through government force.
Michael J. Reitz is executive vice president of the Mackinac Center for Public Policy.