AI, Economic Turmoil Could Pave the Way for Union Gains Among White Collar Workers

Traditionally, unions pitch wages and benefits in organizing efforts. But anxiety about job security in the face of existential threats posed by AI and general economic uncertainty gives labor a new argument and potentially a new organizing frontier—white-collar workers.

More white-collar unions? Organizing white collar workers has always been an uphill climb for unions, particularly because federal labor law does not give supervisory employees the right to organize (the law’s definition of “supervisor” is notoriously vague). Nevertheless, unions have begun to make significant gains amongst white-collar workers, particularly in the finance and tech sectors, as highlighted in a recent Washington Post article.

• The Communication Workers of America has successfully organized bank tellers at multiple branches around the country over the last three years, capitalizing on industry layoffs and fears of being replaced by automation.

• Unions are establishing themselves at major tech companies as well, including Alphabet, Bethesda Game Studios, and Kickstarter.

Threat of AI drives organizing: As University labor historian Joseph McCartin observes: “The introduction of new technologies has eroded both pay and prestige of these jobs, and I think that’s making workers feel that the kind of career path that might have been available to the generation before them is starting to seem less accessible.”

• Fears that automation and AI may replace entry-level work and information and knowledge-based jobs have driven more white-collar workers into the arms of unions.

Can unions deliver? One of the most prominent examples of recent union success organizing college-educated workers—Starbucks—highlights the significant gap between winning an election and reaching a contract that delivers the promises offered to workers.

• Starbucks Workers United has successfully organized almost 700 stores—12,000 workers—since 2021, but has still yet to reach a collective bargaining agreement with the company.

• Starbucks has since decided to shut down dozens of stores, including nearly 60 unionized locations.

• While the union was able to negotiate severance pay for workers at the stores being shut down, securing an agreement for all of its represented employees remains elusive as both sides continue to remain at odds at the negotiating table.

• Delivering first contracts will be an essential proof-of-concept as unions hope to make inroads into white-collar jobs.

Employer takeaways:

• As AI continues to be integrated into the workplace and the threat of displacement rises, the protections and benefits offered by organized labor will become that much more enticing to workers in all industries.

• While automation has existed in manufacturing jobs for decades now, the new threat posed by AI to white-collar jobs will create new opportunities for union organizing in industries and companies that until now have faced very little union pressure.