The Pandemic and its Effect on American Labor

Historical Context and the Cyclical Nature of American Labor

• The lecture examines the period from the year $2000$ to $2020$, within the broader context of labor history beginning in the $1960s$.
• The $1960s$ were characterized by significant labor gains during a "decade of activism." These gains were intertwined with other social movements, including:
      - The Civil Rights Movement.
      - The Antiwar Movement.
      - The Women's Movement.
• American labor history is characterized as a recurring cycle rather than a linear progression toward a "promised land."
      - Laborers fight for better treatment, rights, and pay, only to have those gains eroded or "whittled away."
      - The struggle involves navigating "valleys," "pitfalls," and "mountains."
      - Notable "good years" or promising periods for the American labor movement include the $1930s$ (recovering from the Great Depression) and the $1960s$.

Quantitative Trends in Union Membership: $1980$–$2026$

• Since the $1960s$, there has been a steady decline in union membership through various political administrations:
      - Beginning of the $1980s$: Union membership was at $23\%$.
      - Reagan Administration ($1980s$): Characterized by a "very anti-union environment."
      - $1990$: Union membership dropped to $18\%$.
      - Clinton Administration ($1990s$): Though Democrats are often perceived as pro-union, Clinton was a "centrist Democrat" whose policies were often unfriendly toward labor unions.
      - $2000$: Union membership stood at $15\%$.
      - $2010$: Union membership was at $13\%$.
      - $2020$: Union membership was at $12\%$.
      - $2026$ (Current): Union membership is approximately $10\%$ of the American labor force.
• Economic Disparity: In an "apples-to-apples" comparison (e.g., comparing similar roles rather than a lawyer to a manufacturer), the average non-unionized worker earns only $\$80.84$ for every dollar ($\$1.00$) earned by a unionized worker.

The Transition to a Service Sector Economy

• The shift from a manufacturing-based economy to a service-sector economy has significantly hindered the labor movement.
• Comparison of sector unionization rates:
      - Manufacturing: Approximately $25\%$ to $30\%$ of jobs remain unionized.
      - Service Sector (General Retail): Only about $6\%$ of workers are unionized.
• Barriers in the Service Sector:
      - Includes white-collar professions (e.g., lawyers, finance) that lack a history of unionization and do not feel the need to organize.
      - Includes retail and gig-economy roles (e.g., Amazon, Walmart, Home Depot, Starbucks, Pizza Hut).
      - Challenges include well-financed anti-union efforts, misinformation campaigns, and the fact that these jobs are designed to be "easily replaced."

Global Trade and International Organizations

• GATT (General Agreement on Tariffs and Trade): Created after World War II. Its primary premise was to encourage global trade to ensure countries were economically intertwined, thereby reducing the likelihood of war.
• WTO (World Trade Organization): Formed in $1995$ as a replacement for GATT, which was viewed as outdated.
• Labor Opposition to the WTO:
      - Protesters in Seattle in $1999$ targeted the WTO for promoting "unregulated global trade."
      - The removal of trade barriers allows corporations to move plants to countries with no worker safety protections, no union representation, and no environmental regulations.
      - This leads to a "race to the bottom" where products are produced at the cheapest possible rate on the "backs of the American worker."
• NAFTA (North American Free Trade Agreement): Cited as a parallel blow to labor, leading to jobs moving to Canada and primarily Mexico.
• Trump Administration Stance: Opposed the WTO and established treaties, though the lecturer argues this was driven by an anti-establishment agenda and a desire for higher tariffs against China, rather than a genuine concern for the plight of the American worker.

Shady Business Practices and the Great Recession

• Enron (2000): A powerful energy company based in the American West and California.
      - Reported profits of approximately $\$62,000,000,000$ in $2000$.
      - Artificially generated "rolling blackouts" to claim infrastructure decline, jacking up rates and seeking public funding.
      - Funding was diverted to executive bonuses and gaudy pay rather than infrastructure.
      - The eventual collapse led to workers losing their pensions and jobs while executives largely escaped legal consequences (except one briefly imprisoned).
• WorldCom: Another large corporation that went bankrupt due to corrupt practices, leaving workers with nothing.
• The Great Recession: Caused by shady business practices leading to a housing market collapse.
      - Unemployment rose from $5\%$ to $10\%$.
      - The Obama administration utilized a "very aggressive spending initiative" to prevent a full depression, but the resulting recession made workers less likely to protest for rights due to job scarcity.

The COVID-19 Pandemic and its Immediate Effects

• Pandemic onset: March $2020$.
• Unemployment rates during the pandemic era:
      - April/May $2020$: Unemployment reached approximately $15\%$.
      - February $2021$: Unemployment dropped to $6\%$.
      - Early $2026$: Unemployment is hovering at about $4.5\%$, having risen slightly due to a precarious economic environment.
• Challenges faced by workers:
      - Unsafe physical conditions in healthcare and essential businesses (e.g., grocery stores).
      - Conflict over masking and engagement with sick populations.
      - Psychosocial and emotional strain of navigating the pandemic.
      - Rise of "internet experts" (lawyers, professors, etc.) without infectious disease expertise offering advice on pandemic navigation.

Pandemic-Induced Labor Gains and the Shrinking Labor Pool

• A shift occurred where labor began to make gains due to state and federal intervention.
• Government compensation (stimulus checks) allowed some workers to reevaluate their jobs and stay home temporarily.
• Impact: The labor pool shrank, shifting the power dynamic and forcing corporations to make jobs more enticing.
• Manifestations of these gains:
      - Significant wage increases: Positions formerly paying $\$12$ per hour began offering $\$15$, $\$17$, or $\$21$ per hour.
      - Introduction of benefits in service-sector jobs previously kept part-time and benefit-free (e.g., grocery stores, Target, Menards).

Recent Unionization Efforts and Political Landscape

• Union Successes: Unionization efforts succeeded in previously resistant areas, including Amazon and Starbucks.
• National Labor Relations Board (NLRB): Created by the National Labor Relations Act (Wagner Act).
      - Between $2021$ and $2022$, petitions to the NLRB increased by over $50\%$.
• Biden Administration:
      - Biden campaigned heavily on appealing to labor unions and appointed pro-labor members to his cabinet and the NLRB.
      - Rail Strike Conflict: Approximately $100,000$ freight rail workers planned a strike for paid sick leave. Biden used language from the Taft-Hartley Act to declare the strike illegal, citing national security and economic impact over worker rights.
• Current Strikers (2026):
      - A massive meatpacker strike at JBS Swift involving $4,000$ workers.
      - Workers are protesting dangerous conditions and overwork, conditions not seen in the meat industry since the $1980s$ or $1990s$.
      - These strikers face a Trump administration that is viewed as "not pro-labor in the least bit."
• The goal for the American worker remains achieving a "just and living wage" and the core American values of life, liberty, and the pursuit of happiness.