U.S. House could soon pass legislation making it easier for workers to secure a first union contract
Over the last five years, workers have won unions in several high-profile campaigns, including Amazon workers in Staten Island and Starbucks workers in Buffalo. These examples are a testament to workers’ determination and desire for greater agency in their workplace. But these Amazon and Starbucks workers have yet to reach a first contract with their employer, illustrating the issues many workers face when they win a union and begin collectively bargaining. Far too often, employers refuse to bargain in good faith with workers, significantly delaying a first contract. Currently, on average, it takes workers 465 days to bargain a first contract.
Today, the U.S. House of Representatives will likely consider legislation aimed at ensuring workers can reach a first contract without unnecessary delay. The Faster Labor Contracts Act establishes a timeline from bargaining to mediations and, if necessary, binding arbitration. These provisions discourage delay and promote good-faith bargaining, which is exactly how the law should work.
Corporate mergers and acquisitions are an example of how quickly employers can reach a deal when they want to: these complicated, multibillion-dollar deals can often be reached in a matter of weeks. When these corporate deals take longer, it is often due to government regulators challenging the legality of the corporate merger—not corporate conduct.
To demonstrate the difference in corporate conduct in bargaining with workers for a first contract versus corporate mergers and acquisitions, Table 1 shows examples of companies who have engaged in negotiations with workers and corporate mergers. While Starbucks completed a merger in 67 days, they have taken at least 1,643 days (and counting) to bargain a first contract with their unionized workers.
It is clear that corporations can move quickly to reach a deal related to a merger or acquisition but are far too often unwilling to apply that same priority to negotiations with their workforce for a fair first contract.
Timelines for selected company mergers versus first contract bargaining
| Company | Merger | Merger Days | First Contract Days |
|---|---|---|---|
| Starbucks | Starbucks-Teavana* | 67 | 1,643 and counting |
| Amazon | Amazon-Whole Foods | 123 | 498 and counting |
Notes: *The Starbucks-Teavana merger was held up in courts from 11/19/2012–12/4/2012 (15 days), which was deducted from the number of merger days.
The merger timelines were calculated from the date the confidentiality agreement was signed until the deal closed. The first contract timelines were calculated from the date of the union won the election until a first contract was signed. In none of the above cases was a first contract signed, so the day count for Starbucks and Amazon is ongoing.
Sources: EPI analysis of Security and Exchange Commission (SEC) filings for Starbucks and Amazon and public announcements of Starbuck-Teavana and Amazon-Whole Foods mergers.
The authors thank the Student Policy Network at the University of Notre Dame for their contribution to this research.
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