Unions Are Dying in the Dark: Shining the Light on the Detriment of Right-to-work Laws
The American-organized labor movement has embarked on a nationwide resurgence. The share of Americans who approve of unions — 67% in 2023 — is the highest in more than half a century (Greenhouse, 2024). Companies such as Starbucks, Boeing, and Amazon are increasingly under pressure from pro-worker campaigns supporting unionization (Hsu, 2023). However, growing enthusiasm has not been enough to quell the precipitous decline in unionization. In 1983, 20.1% of Americans belonged to unions; today, that figure has halved, dropping to 10.0% (Green, 2024). While natural factors — such as the decline in union-rich jobs in the U.S. manufacturing industry — have played a role in this steep drop, the driving political factor behind America’s great de-unionization is a little-known law limiting union power.
Since the early 1970s, one state after another has passed right-to-work (RTW) laws that stipulate that no individual can be forced to join a union or pay union dues as a condition of employment (Niznik, 2019). As of Nov. 25, 2024, 26 U.S. states have RTW laws.
These laws were originally designed by pro-business legislatures to weaken unions by limiting due-paying members and reducing union resources. The logic of these legislatures relies on the classic free-rider problem, meaning blue-collar workers may choose not to pay dues and rely on other employees to pay their share (Reed, 2018). However, as more and more workers rely on their colleagues to pick up the slack, revenue from dues declines overall, and unions are starved of resources. Moreover, RTW laws also limit the collection of agency fees, which are fees issued to non-union workers to reimburse the union for advocating on behalf of union and non-union workers alike (Traub, 2017). Ultimately, a study from 2022 found that these RTW laws reduced unionization rates by 13% (Fortin et al., 2022).
RTW laws have far-reaching consequences that extend beyond weakening union membership; they fundamentally alter economic opportunity and stability. States with RTW laws often face a “union wage penalty,” as reduced unionization leads to lower wages across the board (Cobble & Merril, 2008). With fewer employers offering competitive wages and union benefits, non-union employers face weaker pressure to match those standards (Wilson, 2018). As a result, the decline in collective action allows employers to slash wages. On average, wages in RTW states are 3.1% lower than in non-RTW states (Gould & Kimball, 2015). The effect of RTW laws on minority workers is far greater, leading to wage decreases of up to 9 and 8 percent for African Americans and Latinos, respectively (Manzo, 2013).
RTW laws do not just suppress wages — they also strip workers of vital benefits. Over 90% of union workers have access to employer-sponsored health insurance, a stark contrast to the 68% of non-union workers who gain insurance from their jobs (McNicholas et al., 2020). By undermining collective bargaining, RTW laws rob employees of the leverage needed to negotiate better healthcare packages. The consequences are tragic: Employer-sponsored health insurance coverage is 2.6% lower in RTW states compared to their non-RTW counterparts — leaving countless workers with fewer options and greater vulnerability (Gould & Shierholz, 2011).
RTW policies also impact safety and equality in the workplace. Unions have historically been crucial for checking back against unsafe work practices and weak benefits. Unionized workplaces tend to have more safety equipment and empower workers to feel comfortable reporting poor working conditions without fear of retaliation (Shierholz et al., 2022). Without a robust union presence, workers face higher injury rates and fewer avenues for recourse. Work-related deaths are highly concentrated in RTW states, and RTW laws have been found to increase workplace fatalities by 14.2% (Fox & Parsons, 2016; AFL-CIO, 2022)
As RTW laws plague half of U.S. states, a shift is essential to preserve worker rights. The labor movement’s renewed momentum has reinvigorated national debates, enshrining the urgency of our conversations surrounding worker welfare. Increasing support for pro-union measures is a step toward rebalancing the scales. For example, the Protecting the Right to Organize Act strengthens workers’ rights to organize and strike by scaling closing loopholes in labor law and enhancing protections against employer retaliation (AFL-CIO, n.d). To ensure that labor rights and economic security are accessible to future generations, we must fight back against the laws that brought down unions and advocate for our rights as workers.
Edited by Nicolas Nemati
References
AFL-CIO. (2022). Annual report on workplace safety. AFL-CIO.
AFL-CIO. (n.d). “How the PRO Act Will Help Employees Advocate for Improvements at Work.” AFL-CIO. https://aflcio.org/how-pro-act-will-help-employees-advocate-improvements-work.
Cobble, D. S., & Merril, D. (2008). The wage effect of unionization: A meta-analysis. Journal of Labor Economics, 26(3), 563-585.
Fox, J., & Parsons, L. (2016). Workplace fatalities in right-to-work states: A statistical overview. Occupational Safety Review, 44(2), 88-102.
Fortin, N., Lemieux, T., & Lloyd, D. (2022). Right-to-work laws and their impact on union density. National Bureau of Economic Research Working Paper.
Gould, E., & Kimball, W. (2015). Wages in RTW states: The 3.1% gap. Economic Policy Institute Report.
Gould, E., & Shierholz, H. (2011). Employer-sponsored health insurance and its disparities in RTW states. Economic Policy Institute.
Green, D. (2024). Decline in union membership since the 1980s. American Economic Review, 114(4), 234-258.
Greenhouse, S. (2024). Union support hits historic high. The New Labor Movement Journal, 29(1), 12-16.
Hsu, A. (2023). Corporate challenges to unionization: A case study of Starbucks, Boeing, and Amazon. Journal of Workplace Studies, 35(7), 125-140.
Manzo, F. (2013). The wage impacts of RTW laws on minority workers. Illinois Economic Policy Institute.
McNicholas, C., Shierholz, H., & Gould, E. (2020). Union membership and health insurance benefits: A comparative study. Economic Policy Institute.
Niznik, J. (2019). A historical analysis of RTW laws in the United States. Labor History Quarterly, 47(3), 220-243.
Reed, D. (2018). The free-rider problem in RTW states. Labor Studies Journal, 43(2), 175-189.
Shierholz, H., McNicholas, C., & Gould, E. (2022). Workplace safety: Unions and the prevention of injuries. Economic Policy Institute Briefing Paper.
Traub, A. (2017). Agency fees under siege: The consequences of RTW laws. Union Law Review, 19(4), 310-335.
Wilson, R. (2018). RTW laws and their economic implications. Brookings Institution.
Pugliano, B. (2012). Michigan State Police in riot gear stand with batons while protesters block a street during a rally at the Michigan State Capitol to protest a vote on Right-to-Work legislation [Photograph]. Getty Images. https://slate.com/news-and-politics/2012/12/right-to-work-laws-why-do-union-busters-use-the-orwellian-phrase-right-to-work.html