The warehousing and distribution sector is currently grappling with various labor-related challenges, including high turnover rates, labor shortages, and an increased focus on union activities. These issues have emerged as a result of shifting industry dynamics driven by the rise of e-commerce and advancements in automation technology.
Unionization and labor organizing have gained renewed attention, particularly among Gen Z and Millennial workers, and this trend is contributing to significant changes in the industry. The environment at the National Labor Relations Board is considered employee-friendly, which has facilitated an upsurge in organizing and unionization efforts.
Data from the National Labor Relations Board indicates a substantial increase in union representation petitions in Fiscal Year 2022, with a 53% rise compared to the previous year. Additionally, unfair labor practice charges also saw a 19% increase. Notably, unions achieved a 72% win rate in elections during FY 2022, marking the fourth year in the past five with a win rate exceeding 70%.
The U.S. Bureau of Labor Statistics (BLS) tracks union membership across various industries, including Transportation and Warehousing. In 2022, the Transportation and Warehousing sector had one of the highest overall union membership rates at 14.5%, compared to the private sector’s 6.0% union membership rate. California, in particular, stood out with a union membership rate of 16.1%, reflecting the industry’s attractiveness for union activity.
Activity in the warehousing and distribution industry is on the rise, with a notable increase in Board petitions for elections and work stoppages. This surge is mirrored in the BLS report, showing that median weekly earnings for union members in the transportation and warehousing industry increased from $1,147 in 2021 to $1,203 in 2022. Wages continue to play a significant role in driving unionization efforts, particularly in an inflationary environment.
Looking ahead, the industry can anticipate significant Board decisions in 2023 under the labor-friendly stance of the Biden Administration. Expected changes include a return to Obama-era standards concerning independent contractors and joint employers, along with potential restrictions on permanent strike replacements. The Board General Counsel has also suggested a broader framework for the use of employee electronic management and monitoring tools, which could have significant implications for employers utilizing such technology.
As the industry navigates a post-COVID-19 era marked by increased employee dissatisfaction and a labor-friendly Board, proactive approaches are essential to foster positive employee relations and address evolving concerns. Employers are encouraged to consider employee issues and explore opportunities for growth and advancement to stay ahead of potential organizing activities.
In addition, as employers adapt to the evolving workplace, they should evaluate the impact of technologies beyond their primary functions and assess how they may affect compliance with various labor-related obligations, especially in the context of a more progressive labor Board.
It is crucial for employers to stay informed and proactive as the industry undergoes these significant labor-related changes. Jackson Lewis maintains an industry group that monitors developing issues, and they are available to provide guidance and support to address any questions or concerns related to these labor trends.
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