Worker Unionization

Unions are one-way, workers can gain leverage to negotiate working conditions, benefits, and compensation through the power of collective bargaining.

In the past year, petitions to unionize have been steadily increasing. According to the U.S. National Labor Relations Board, union representation petitions filed at the NLRB from ​​October 1, 2021, to June 30, 2022, have increased 58% over the same period the previous year.

This follows a long period of time when unions were far less popular.  

Why the Surge in Unionization?

The American workforce has experienced quite the roller coaster over the past two and a half years. We saw widespread layoffs in the spring of 2020, followed by a massive hiring wave.

We then saw the Great Resignation in 2021, when 47 million Americans left their jobs. And now, companies everywhere are experiencing severe worker shortages.

What does all this have to do with unionizing?

The Covid-19 pandemic caused businesses to alter how they operate. While many made every effort to keep workers safe, many employees didn’t feel protected, particularly those who still needed to show up every day while a whole class of workers could work from home.

Beyond safety measures, the pandemic forced everyone to reevaluate their priorities and, with that, their jobs. Many people have realized that work today doesn’t necessarily have to look like it did in 2019. They want things to change, and unionization gives them more power to change them.

Another likely reason the U.S. is seeing a surge in unionization is the political climate; 68% of Americans approve of labor unions, according to a 2021 poll.

In addition to a pro-union climate, stories from workers attempting to unionize have received noteworthy media attention, both on national outlets and social media platforms. When Amazon employees at a distribution center in Bessemer, Alabama, made efforts to unionize, it became not only the talk of the town but of the nation.

Despite two unsuccessful elections for pro-union Amazon employees in Bessemer, this move has since sparked many more unionization movements. Workers feel inspired and empowered to share their working conditions and strive to improve them.

Workers at one Amazon facility in Staten Island, New York, successfully unionized in April, becoming the first union at the company.

How Will Unions Affect Investors?

Unions help raise wages for the workers apart from them, which, in turn, increases costs for the companies that employ them.

As unions continue to form across the U.S. at large companies, such as Amazon and Starbucks, earnings will likely be affected, which will impact these companies stock prices. When the future for stakeholders in S&P 500 companies such as these is shaky, investing in private offerings is one way to hedge one’s risk.

For investors looking to participate in private offerings using the Rule 506(c) exemption, the company issuing the shares must verify accredited investor status for verification of investment to comply with the SEC regulations. One way to verify status is through VerifyInvestor.com. After submitting documentation, you can receive your accredited investor letter sometimes within the same calendar day.