U.S. 2023: "Strikegate" reflects economic difficulties
China News Service, New York, December 22 (Xinhua) -- The United States 2023: "Strikegate" reflects the economic difficulties
China News Service reporter Wang Fan
In 2023, the United States experienced the widest wave of strikes in decades, with large-scale strikes breaking out in many industries, including film and television, manufacturing, healthcare, education, retail, hospitality, and media. As of mid-December, more than 500,000 people across the United States had gone on strike, well above the level of the same period in previous years.
The ongoing wave of strikes has taken a toll on the U.S. economy and set off a ripple effect. Among them, the strike action of the United Auto Workers (UAW), which has the greatest impact on the economy, has put pressure on automakers, parts suppliers, dealers, trucking companies and even airlines, and directly caused the US gross domestic product (GDP) growth to decline by 0.2% on an annualized basis.
The trigger for this round of strikes in the United States is high inflation and the widening gap between the rich and the poor, and the strike demands in various industries are mainly focused on raising incomes, improving treatment and protecting jobs. A widespread strike will push wage costs upward, increase production costs for firms, bring layoffs and further push up commodity pricing. In addition, people's identification with trade union organizations has strengthened. These could have far-reaching economic and political implications for the future.
Massive strikes
Since the beginning of this year, strikes in the United States have become more frequent. According to a database by Cornell University's College of Industrial and Labor Relations, there had been about 400 strikes in the United States this year as of mid-December. Among them, most of the strikes took place in local areas, and many industries went on strikes on an unprecedented scale. In addition, some potential strike threats have made the industry boil.
The Writers Guild of America (WGA) strike, which began in early May, lasted 148 days, not breaking the union's record of 154 days for the longest strike set in 1988, but the number of writers participating in the strike has increased dramatically from that time. The Screen Actors Guild of America (SAG-AFTRA) strike, which began in July, lasted 118 days, breaking the record for the longest strike by the Hollywood union, which has 160,000 members. It was also the first time in 63 years that American actors and screenwriters went on a joint general strike.
On July 17, local time, in front of Paramount Pictures in Times Square, New York, people held up "strike" placards and demonstrated. Photo by China News Service reporter Liao Pan
In July, the International Brotherhood of Teamsters, a union representing 340,000 UPS workers, threatened a strike as its five-year contract expired. If the strike materializes, it will be the largest single-employer strike in U.S. history. In the end, express delivery giant UPS reached an agreement with the union to avoid a strike in advance.
In mid-September, UAW announced strikes against the three major U.S. automakers, General Motors, Ford, and Chrysler's parent company, Stellantis. As the initial negotiations did not go well, the number of people involved in the strike continued to increase. After six weeks of strikes, the strike has come to an end with UAW reaching an agreement with the three major automakers.
On October 4, more than 75,000 medical staff of the Union Union of Kaiser Medical, the largest private medical institution in the United States, went on strike after labor and management failed to agree on a new contract. It was the largest medical strike in U.S. history. Later, Kaiser Medical reached an agreement with the Union Confederation and the strike ended.
Whether it's healthcare workers demanding more staffing and an end to mandatory overtime, or the WGA calling for restrictions on AI writing or rewriting scripts, the strikes are demanding more than just higher revenues. In an environment where labor's bargaining power has increased, workers represented by unions have not only seen double-digit percentage increases in income, but have also received long-term benefits and job security.
Behind the game
In 2023, the number of people participating in strikes in the United States hit a new century. The Wall Street Journal reported that people are dissatisfied with and even resentful of decades of stagnation in wages and benefits, spurred by factors such as rising labor shortages, soaring corporate profits, deteriorating working conditions, and rising prices, and have shown great support for unions.
According to a report released by Gallup, a polling firm, Americans support union organizations at 67 percent this year, a long-term average of more than 62 percent for the fifth year in a row. There has been an unprecedented rise in perception that U.S. unions will become stronger in the future, with 34 percent of Americans believing this year, compared with 19 percent five years ago.
On the morning of July 14, local time, in front of the headquarters of Warner Bros., Disney and other American film and television entertainment industry giants, hundreds of people held up "strike" placards and demonstrated. Photo by China News Service reporter Zhang Shuo
In recent years, a number of industry unions have elected a new generation of leaders, including UAW President Shawn Fain, WGA Chief Negotiator Ellen Stutzman, and SAG-AFTRA President Fran Drescher, who are the labor leaders in the collective bargain. According to the media, these leaders are wiser and more aggressive, and are adept at using multiple channels such as the public, the media, and government representatives to confront employers with difficult negotiation conditions.
In the negotiation process, the new generation of union leaders is very strategic. For example, the WGA has focused its negotiations on Netflix and Walt Disney, the largest and most profitable streaming companies, while the UAW has targeted auto parts suppliers and their "cash cow" sport utility vehicle (SUV) factories.
In the previous UAW strike, U.S. President Joe Biden went to Michigan to participate in the Detroit auto workers' strike rally to show support, and former U.S. President Trump also followed suit to speak at the rally, both sides tried to win votes in the "swing state". This also reflects the fact that the impact of the trade unions in this round of strikes is not only economic.
In fact, trade unions in various industries are well aware that this influence can be leveraged. In recent years, large trade unions, represented by the protection of workers' rights, have sought to gain more political influence. If the strike wave continues to spread, the labor unions that have been suppressed may receive more attention in American politics in the future. (ENDS)