New report confirms: Unions matter when it comes to medical and retirement benefits

As workplaces across the United States begin organizing at rates not seen in decades, the Bureau of Labor Statistics (BLS) has released a new report highlighting the differences in employee benefits available to unionized and non-unionized workers. Across the five benefit categories examined, retirement, medical, life insurance, and paid time off, workers who were union members were more likely to receive these benefits.

The 2023 Union Member report published by the BLS earlier this year also highlights the importance of unions in increasing workers’ compensation. Of the over a dozen sectors the BLS uses to categorize workers, only a small fraction saw higher pay among non-unionized workers, namely those in management, professional, and related occupations. When divided by industry, union members made, on average, nearly $13 more per week than their non-unionized counterparts.

The case of retirement benefits

Relating to retirement benefits, 95 percent of union members have access to these benefits either as a defined benefit pension plan or as a defined contribution retirement plan (i.e., 401(k), ROTH IRA, etc.). The rate for non-union workers captured by the BLS in March 2024 was seventy-two percent. At 10.2 percent, service occupations, which for the BLS include healthcare support occupations, protective service occupations, food preparation and serving related occupations, building and grounds cleaning and maintenance occupations, and personal care and service occupations, had one of the lowest unionization rates in 2023. Workers in service occupations, more commonly referred to as the service sector, are the least likely to be offered retirement benefits of any kind. The average for all civilian workers is 75 percent, while for workers in service occupations is 52 percent.

Medical benefits are no different

The story of medical benefits is similar. Employers of unionized workers are more likely to offer medical benefits and pay a higher share of monthly premiums than those with a non-organized workforce. Union members are better able to negotiate for better pay and conditions, which can force the hand of employers or risk industrial actions like strikes, which can greatly hurt their bottom line.

Medical benefits offered to workers

Premium paid by employer

Already, one can see that workers who are members of a union pay a smaller percentage of their monthly premiums for their health insurance. When expanding to the cost distribution for families, the differences in benefits offered become even more stark. While union members pay around 23 percent of the cost of their premium, up only three percent compared to individuals, non-union workers pay 13 percent more (33 percent).

Looking at the differences as they relate to paid time off, 91 percent of unionized workers were offered the benefit, whereas the rate for their non-union counterparts was twelve points lower at 79 percent.