NAW Study Probes Union Effectiveness for Worker Outcomes - Modern Distribution Management

NAW Study Probes Union Effectiveness for Worker Outcomes

See some of the key findings and takeaways from this research that focused on wage growth and job security in the manufacturing and transportation industries governed by the NLRA and RLA.
A group of warehouse employees, Inspecting products on warehouse shelves before they are sent to retailer

A new study by the National Association of Wholesaler-Distributors (NAW) and Elevated Insights Group examines the economic outcomes of unionized workers in the U.S. manufacturing and transportation sectors. The research focuses on two governing labor laws: the National Labor Relations Act (NLRA), which covers most private-sector unions, and the Railway Labor Act (RLA), which applies to airlines and railroads. 

Here are some of the key findings and takeaways from the research:

Frequent Strikes, Limited Returns

The study found that unions in NLRA-governed industries strike far more often than those under the RLA. Roughly 80% of strikes in manufacturing and transportation cited higher pay as the top demand. Transportation equipment manufacturing was especially strike-prone, with more than 20 walkouts between 2015 and 2024. This single industry accounted for 76% of all work hours lost to strikes in the sector over the past decade. Yet despite frequent and disruptive actions, most unionized NLRA workers did not achieve stronger long-term wage outcomes, the study notes.

Wage Performance Favors RLA and Less-Unionized Groups

The data shows that aggressive bargaining did not translate into outsized earnings growth:

  • In 2024, average hourly wages were $38.57 for RLA-unionized jobs requiring a high school diploma, compared to $37.00 in the Postal Service, $27.17 in the most highly unionized NLRA jobs, and $25.88 in the least unionized NLRA jobs.
  • Over the past decade, RLA jobs saw wages grow 34%, compared to 26% for the most unionized NLRA jobs and 25% for the Postal Service. Surprisingly, the least unionized NLRA jobs grew the fastest at 36%.
Layoffs Coincide with Union Pressure

The study also found a link between aggressive union activity and large-scale layoffs. Between 2015 and 2024, 60% of mass layoffs (defined as 1,000+ jobs lost) in manufacturing and transportation occurred at unionized companies. In transportation equipment manufacturing, 87% of major layoffs involved unionized employers — many occurring within a year of significant strike activity.

The study highlighted examples of major manufacturers for this. General Motors experienced strikes in 2015, 2019 and 2023, alongside five mass layoffs impacting 12,400 jobs. Stellantis faced a similar cycle, with four strike actions in the past decade followed by layoffs affecting more than 9,000 workers. 

Policy Implications

The report concluded that while unions remain a key voice for workers, excessive reliance on strikes and wage pressure has not delivered the promised results under NLRA governance. Workers in less unionized NLRA or RLA-regulated industries have often fared better, enjoying stronger wage growth and greater stability. For policymakers, this raises questions about the balance between preserving collective bargaining rights and promoting sustainable economic performance.

“These findings underscore that, over the past decade, workers have not realized gains from aggressive union leader tactics,” NAW CEO Eric Hoplin said in a news release. “In fact, the opposite trend is clear: the least unionized workers have seen greater wage growth.”

You can find a wealth of more in-depth insights by downloading the full report here.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

This field is for validation purposes and should be left unchanged.
Name(Required)

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!