The Union Advantage in Pay and Benefits

 

Union workers earn more
Wages and benefits for the average union worker in the private sector totaled $37.85 per hour in September 2010, compared to $26.74 an hour for the typical non-union worker.

Wages and salaries higher for union workers …
In September, the average union worker in the private sector earned $23.19 per hour in wage and salary income, while the average non-union worker earned $19.28 per hour. That’s a union advantage of $3.91 per hour, or $8,133 per year for a full-time, full-year worker.

… But benefits are the biggest union advantage
Benefits, though, are where the biggest union advantage lies. The average union worker in the private sector receives $14.66 per hour toward their benefits package while their non-union counterpart receives only $7.46 per hour.

Retirement and health benefits more widespread for union workers
After years of service, workers deserve a secure retirement. Unfortunately, only 49 percent of non-union workers receive retirement benefits through their employer, through either a traditional pension or a 401(k) account. In stark contrast, 87 percent of union workers have employer-provided retirement benefits.

Only half of non-union workers receive health care benefits through their employer. That compares with 78 percent of union workers.

Union advantage holds across occupations and industries
Blue-collar workers in manufacturing enjoy a substantial advantage from union representation – but so do workers in non-manufacturing settings. In fact, the Bureau of Labor Statistics’ report, “Union Members - 2009,” shows that the union advantage holds across occupations and industries.

For example, union workers in protective service jobs (such as security guards and corrections officers) earn median pay of $992 per week, compared with $611 for non-union workers. The union premium also exists in office and administrative support occupations where union workers earn $782 per week compared to $595 per week for non-union workers.

Sources:
Bureau of Labor Statistics, “Union Members - 2009”

Bureau of Labor Statistics, “Employee Benefits in the United States-March 2010”

Bureau of Labor Statistics, “Employer Costs for Employee Compensation, September 2010”