Workers have not had this much power in decades, and they’re exercising that power now. Historic low unemployment coupled with the ability to organize and communicate through online channels has put the power in the hands of workers like never before. The unionization movement of Starbucks and Amazon workers may very well lead to unionization efforts by other retail workers. Management needs to focus on employee relations in a very serious way. It can’t be lip-service and platitudes. If management wants to have great relations with their employees, then they need to engage with them in a meaningful way.

It’s notable that the successful Amazon unionization campaign in New York came from a grassroots movement rather than an established national union. Perhaps these more localized efforts represent the future of unions. As for the subject of unions more widely, I am not particularly keen on them and never have been. To me they are an entirely extraneous component that neither owns a company nor works there. And I am very, very strongly opposed to anyone who does not want to be a part of a union being forced to pay union dues.

I’d like to say, “workers of the world, unite” but the days when unions were critical to American business may be long gone. In an over-stored retail world, don’t be surprised to see unionized stores closed. A wake-up call for companies who do not treat their employees well, but if my local fast-food restaurant strikes for higher wages, I’ll eat elsewhere. Sooner or later, they’ll go under.

Did you read this article about the Rhodes scholar who organized Starbucks? This was not coming from Starbucks being awful but was merely an opportunity to organize.

As such this appears to be a movement against some of the most progressive companies in the U.S. This is not Norma Rae. I am wondering how many of these workers will take to seeing union dues coming out of their paychecks and for how long.

As unionization crumbled in the U.S., so did the wages of the average worker and the increase in financial equality. It is no coincidence that the golden age of unions in the 1950s corresponded to the golden age of the U.S. economy and the smallest gap of inequality in the country’s history.

Today, the power of the leadership far outweighs the workers’ power. Imagine a company with even 20,000 or more workers having no say in the company’s future nor their own.

Germany requires just under half of the Board of Directors to be worker representatives. I find this rule to be extraordinarily beneficial to the company. Though not required, Volkswagen uses this philosophy in their local management board.

If retail doesn’t embrace worker representation as a way for both labor and management to move the company forward, they should be fearful of the outcome. Companies should not patronize workers in voice or action, they should see them as the fuel that determines the company’s long-term success.

Having a pragmatic labor union is nothing harmful. On the contrary, a healthy balance between interests of the employer and the employees is in the end better for every company. Important is that the labor union has a pragmatic mindset.

Unions complicate the relationship between management and employees. According to a September 2021 Gallup poll, 68 percent approve of labor unions, the highest since 1965, with union membership steady at 9 percent of U.S. adults. This increased receptivity reflects the widening disparity between CEO and floor or shop worker salaries. Between 1978 and 2019, CEO pay went up 948 percent, while typical worker pay rose 12 percent. The disparity has widened during the pandemic, with CEOs making 351 times as much as the typical worker.

No retail CEO wants to deal with a union and, on the whole, most employees would rather not be in unions. However the widening pay gap, low wages in the face of inflation, unsafe working conditions, uncaring management, and lack of job security all contribute to a climate of unionization. Leaders like Starbucks’ Mr. Schultz have rebuilt employee trust in management in the past and can do it again. Retail CEOs can’t wish this away; they have to face the issue head-on.

These retailers excel at the customer experience. Now they need to prioritize the employee experience.

Recent union wins could very well galvanize and embolden more retail workers. The labor shortage and pandemic boosted workers’ power and their intolerance of the status quo.

Now workers yearn for a safe, respectful community. Listening to workers is integral to satisfy their needs, rebuild their trust and derisk the threat of more unions.

Maybe if they embraced the idea of fair labor, they wouldn’t have so much trouble hiring people. Give it a try — the ’90s are over.

Unions have suffered from silly opposition based on theory more than reality — and from their own bureaucratization. Yet there are also tremendous benefits they can bring companies and which companies should embrace. I’ll especially point out that the Great Resignation wouldn’t be happening if we had more unions in place as they wouldn’t have accepted the decades long degradation in employee working conditions.

This myth about “between the company and the employee” looks like a lobbyist talking point. It’s is also paternalistic which reflects exactly the reason unions are popping up again – because in their paternalism companies abuse the relationship with employees.

That said, unions need to focus on the important matters – not on mere bureaucratic control which can be abused to stop progress. Hopefully new blood in the union movement can return it to a focus on the things of most importance.

Happy workers don’t unionize. It is that simple.

Organized labor in today’s age never works out for either party. It creates a zero sum game, which never works in the medium to long term. So to avoid this companies have to give their people avenues and outlets to express and share their ideas and grievances. And finally they have to listen and act.

I assume workers will now have to pay union dues and that they will beget corruption as they always do. We’ll see how this works out. Maybe I’m colored by my father’s experience. His union went out on strike for 9 months. He had no other source of income. When the strike ended, he had no job to go back to because they put the company on the brink of going out of business. He never forgot nor forgave.

There has been an ongoing trend towards self-service and AI that has been driving retailers towards reducing labor costs. Whether there is a fear or not, an organization of labor seems to be on the uptick, meaning that retailers must address this concern head-on. I don’t see “stile breakers” or “Union busters” but there will be negotiations at the table and intrinsic improvement for better working conditions and wages, especially with the high demand for labor and low unemployment rates. Whether this is done formally through union-management or informally through hr-employee is a matter of organizing skill for worker groups. Retailers will need to cope.