In politics making politicians will talk about middle income values and the idea that with a larger middle income, more people could afford housing, vehicles, savings and investments. One of the things the politicians do not talk about is money or raises for workers. In many states, legislatures had the chance to raise minimum wages but they declined. In some states, the Governors threatened workers that we do not want unionized workers but offered no raises. In the 1960’s when more people afford life’s choices, a higher percentage of workers were unionized. That does not mean every workplace was better, it just meant more people had higher wages than minimum wage. There was a marked decline in unionization as companies shut down plants and moved them to lower wage south and out of the country to Mexico or China.

In an article by David Koeing of the Associated Press, the Union Auto Workers (UAW) won a stunning 73% at VW after losing elections in 2014 and 2019. It was the union’s first win in a Southern assembly plant owned by a foreign automaker.

UAW President Shawn Fain said the fight will go on to all the auto plants across the Southern US. The next UAW drive is the Mercedes-Benz plants in Tuscaloosa, Alabama for 5 days around the 15th of May which the union lost the vote.

Harry Katz, a labor relations professor at Cornell University noted the UAW will have a harder fight because of aggressive management resistance and even community resistance. One of many reasons is labor unions are tied to communism and there is a long history of fighting communism, but not a long history of paying employees well.

One of the advantages the union movement has is President Joe Biden, he believes unions help raise workers’ wages to promote a larger middle class. President Biden encouragement means the federal regulators are not putting up barriers to the union. The workers in the southern states see the gains the unions made in more money and benefits in the northern states and wonder why not here?

Linking to dividend paying stocks, just because there is a union does not mean middle income is the result. Most of the writer’s career was with a nonunion higher paying financial companies which found a method to let people go who wanted unions. In addition, one job was with a union who agreed to $1.00 above minimum wage, not exactly middle-income results. Unions come with all types of bargaining abilities but when workers see management doing well and they are doing less well, they are willing to try. For the companies you invest in, what is their labor management practice? what is the ratio between the President’s compensation and the lowest entry level job? will change come to the company?

There are more questions than answers, till the next time – to raising questions.