Unions have been an effective tool to promote social mobility, particularly for non-white workers, according to new research.
Union members of color, including black and Latino workers, had $33,511 in median wealth, almost five times the median wealth of non-white non-union workers from 2010-2016, the Center for American Progress said in a report released Tuesday. White union members have more wealth than white non-union workers, but the difference -- about 40 percent -- is much less pronounced.
“Unions boost wealth for all workers, and the wealth jump is the biggest for communities of color,’’ said David Madland, the study’s co-author and a senior fellow at the progressive Washington-based think tank. “It’s not just unions helping one group, it’s helping all groups and providing the most help for the people who need it the most.”
Among black workers specifically, union members had almost $20,000 more in median wealth than those not in unions, the report found.
White workers, whether in unions in not, had higher median wealth than workers of color, CAP’s study found. White union members held more than three times the median wealth of non-white union workers.
Workplace Benefits
Madland and Christian Weller spent two years analyzing data from the Federal Reserve’s triennial Survey of Consumer Finances, a nationally representative survey of U.S. household wealth.
The researchers determined that workplace benefits from collective-bargaining agreements, including health insurance, create more chances for people of color to save money and invest.
For example, 58.7 percent of union workers of color owned their homes compared to 47.7 percent of non-union members of color, according to the study. More than half of union workers of color had a 401(k) retirement savings plan compared to 35 percent of their peers who weren’t covered by collective bargaining contracts at work.
Job Security