More stories

  • in

    Amid Strikes, One Question: Are Employers Miscalculating?

    UPS, the Hollywood studios and the Detroit automakers appear to have been taken aback by the tactics and tougher style adopted by new union leaders.The list of gains that the Hollywood writers secured to end a nearly five-month strike with studios once seemed ludicrously ambitious: not just wage increases, but also minimum staffing levels for shows, new royalties on successful series and restrictions on outsourcing writing duties to artificial intelligence.Yet far from an anomaly, the writers’ deal was the latest high-profile labor standoff that seemed to produce substantial gains for workers, and to suggest that they have more leverage than in the past.United Parcel Service employees won large pay increases for part-timers by pushing the company to the brink of a strike, while the lowest-paid academic student employees at the University of California won salary increases of more than 50 percent after a monthlong strike affected thousands of students.Given the unions’ apparent bargaining power and the economic costs to a prolonged work stoppage, the question arises: Why wouldn’t management make its eventual concessions more quickly?The answer, many union and management experts say, is that employers are increasingly miscalculating — acting from a template that applied in previous decades, when employees had little leverage, and underestimating the frustration and resolve in the postpandemic work force.“Psychologically, it’s a big shift: They’ve been in control. They have been able to tell their representatives to go and get concessions on X and Y, to make sure the wage increase is modest,” said Thomas Kochan, an emeritus management professor at the Massachusetts Institute of Technology, referring to corporate executives.“Now, they have to change their expectations internally,” Dr. Kochan added. “They have a lot of work to do.”In example after example, executives appear to have been taken aback by unions’ new, more assertive leaders and their success at rallying members and the public, as well as the ineffectiveness of the employers’ traditional bargaining approach.Sean O’Brien, the Teamsters president, right, attacked UPS over what the union referred to as “part-time poverty” jobs.Jenna Schoenefeld for The New York TimesIn Hollywood, the Alliance of Motion Picture and Television Producers, which represents entertainment companies in negotiations with writers, directors and actors, has frequently tried to forge a deal with one of the three guilds, then push the other two to accept similar terms.That appeared to be the group’s strategy this year as well: After the writers went on strike in May, the alliance reached a deal with directors the next month. But any hope that the writers would be isolated collapsed when SAG-AFTRA, the union representing more than 150,000 actors, went on strike in July.“The playbook was clearly outdated,” said Peter Newman, a longtime independent producer who heads a dual-degree master’s program in business and fine arts at New York University’s Tisch School of the Arts.Still, Mr. Newman said, the strikes saved the studios hundreds of millions of dollars on shows in the short term as Wall Street was pressuring them to cut costs.The producers’ alliance declined to comment for this article.In Detroit, the three major U.S. automakers had grown accustomed to closed-door negotiations with the United Automobile Workers union, in which the parties did not disclose the potential terms until they reached an overall agreement.But in the run-up to this year’s mid-September strike deadline, the union’s new president, Shawn Fain, appeared to wrong-foot executives at Ford Motor, General Motors and Stellantis — which makes the Chrysler and Jeep brands — by disclosing and deriding the companies’ offers. In one case, he literally threw a Stellantis proposal in the garbage.Automakers have expressed impatience with the leadership style of Shawn Fain, center, the United Automobile Workers union leader.Cydni Elledge for The New York TimesThe companies’ responses — a Stellantis executive sent employees a letter saying that “theatrics and personal insults will not help,” while Ford and G.M. have also expressed impatience — may have further galvanized members and built public support. Polls have found that the public supports the autoworkers over the companies by large margins, and that the margins increased after the U.A.W. began a limited strike.“It doesn’t seem like they were prepared for the direction he was headed with his public comments,” David Pryzbylski, a labor lawyer who represents employers at Barnes & Thornburg, said of the reaction to Mr. Fain. “The way they have responded may have escalated it further versus letting it die out.”Stellantis declined to comment. Auto industry executives argue that they have made historically generous offers, and that they haven’t been put off by Mr. Fain’s outspokenness so much as what they say are the showmanship and the unrealistic expectations he has created.Mr. Pryzbylski emphasized that it was too early to tell whether the landscape had tilted to labor’s advantage for the longer term, or just temporarily. The outcome of the U.A.W. strike remains unclear, and the workers’ resolve could diminish if the strike drags on for weeks. Talks between the sides are ongoing.Other management-side lawyers said that while a handful of executives might have miscalculated of late, there was no broader trend in this direction. They say that employers remain capable of assessing and acting in their self-interest, and that unions are equally capable of miscalculating.“People are sophisticated on both sides,” said Marshall Babson, a longtime management-side lawyer and former member of the National Labor Relations Board. “From my experience, good negotiators don’t get distracted by pyrotechnics.”But in many cases, what has changed is not so much the bluster from union leaders as their willingness to follow through — a potentially disruptive shift after years of often empty threats.When Sean O’Brien, the Teamsters president, ran to succeed his longtime predecessor, James P. Hoffa, in 2021, he promised to raise wages for part-time workers at UPS, many of whom had long felt shortchanged.And yet, according to two people close to the negotiations, the company seemed caught off guard when talks broke down over the issue on July 5 — Mr. O’Brien’s initial deadline.Mr. O’Brien and the union spent the next few weeks publicly attacking UPS over what the union referred to as “part-time poverty” jobs before the company agreed to hourly wage increases for part-timers of more than $7.50 over the life of the new five-year contract.The chief executive of UPS, Carol Tomé, said the company had expected contract talks this year “to be late and loud, and they were.”Jenna Schoenefeld for The New York TimesShortly after a tentative deal was reached in late July, the UPS chief executive, Carol Tomé, said the company had expected the negotiations “to be late and loud, and they were.” The company declined to comment for this article.Part of the challenge for employers is public opinion: Confidence in big business is at its lowest point in decades, according to Gallup, while approval of labor unions is close to its highest. Mr. Fain and Mr. O’Brien appear to have devised their public campaigns to press this advantage.Unions also appear to have benefited from new methods of keeping members focused on shared goals — as when writers erupted on social media over the news that the talk show hosted by Drew Barrymore would return before the strike ended. (Ms. Barrymore soon reversed course.)And rank-and-file members appear to have become more committed to their leaders’ negotiating strategy as unions have become more democratic and involved members more in the push for a contract, said Jane McAlevey, a longtime labor organizer and scholar.But perhaps most important, employers seem to be underestimating the determination of workers, who believe they have little to lose from striking amid rising prices and fundamental shifts in their industry that have sometimes made their jobs more precarious.A few weeks after the writers walked off the job this spring, Mae Smith, a strike captain and former writer on the Showtime series “Billions,” predicted in an interview that the economic pain of a protracted strike against the studios would not discourage the writers because “unfortunately they’ve been training us to live off very few months of work for a long time.”The prediction largely held, in something of a departure from the 2007 writers’ strike. Back then, when streaming felt like a distant threat, there were some splits within the Writers Guild over how aggressive to be, said Chris Keyser, a past president of the union.This time, the writers appeared particularly unified by the looming role of artificial intelligence, an issue on which the studios largely refused to engage for months.“A number of C.E.O.s, when we talked to them later about A.I., said that was a mistake,” recalled Mr. Keyser, a co-chair of the writers’ negotiating committee this year.(The writers did compromise on some key issues in the end — there is no ban on studios’ use of scripts they own to train A.I. tools, though the guild reserved the right to challenge instances of this.)Dr. Kochan of M.I.T. said the concession from studios on artificial intelligence was especially significant because it highlighted another shift: employers’ diminished ability to limit negotiations to conventional issues like wages and benefits while often reserving the right to control other aspects of the job, like technology adoption.“For decades, management has been able to say: ‘These are our decisions, our prerogatives. It’s none of your business,’” he said.With the breakthrough on artificial intelligence, he added, “this is a new day — that’s why the writers’ strike was so important.” More

  • in

    Starting with Hollywood, It’s Been a Summer of Labor Strikes

    By The New York Times This year, workers across industries in the United States have increasingly walked off the job or threatened to do so. In July, tens of thousands of actors joined screenwriters on the picket line, bringing Hollywood to a halt. Meanwhile, a summertime strike of more than 300,000 United Parcel Service workers […] More

  • in

    Impact of Hollywood Strikes on Jobs Goes Beyond the Strikers

    Walkouts by screenwriters and actors have meant less work in fields that cater to the TV and film industry.One reason the August employment report wasn’t stronger: Television and movie production has largely halted since a deadlock in contract negotiations between major studios and unions that represent screenwriters and actors.The motion picture and sound recording industry subtracted 16,800 jobs in August. That’s not a huge share of its approximately 438,000-person work force, but it underestimates the total impact of the labor stoppages, given how much spending power the film industry creates in Los Angeles specifically.The shutdown started when 11,500 members of the Writers Guild of America went on strike in May. In the second quarter alone, according to Los Angeles’s film office, activity was down 28.8 percent from a year earlier.The stoppages spread when SAG-AFTRA, which represents more than 160,000 actors and broadcasters, struck in July after its contract with the largest film and television studios expired.Striking actors and writers, however, don’t translate one for one into payrolls. For one thing, many of SAG-AFTRA’s members work for television news stations and aren’t on strike. Those who do act in movies and TV shows usually sign contracts, sometimes for a day or a week, rather than entering into a continuing employment relationship.Between intermittent gigs, they’re used to taking second jobs, like waiting on tables or designing websites. During the strike, they’re also allowed to work in theater and commercials, as well as on a handful of independent projects that have agreed to abide by the union’s demands.Even with no work, most earn at least some money through residuals — although that revenue has shrunk with the rise of streaming, and will fade as the months drag on.“We’re used to being freelancers, and just being able to go along,” said Jodi Long, president of SAG-AFTRA’s Los Angeles local. “For now, what’s really going to affect the job market is the people on set — the hair and makeup people, the gaffers and the grips and the people in production.”Ms. Long is right: The support services required to make movies and shows have largely shut down. Some serve other industries as well, but many have grown up around the needs of film production. Even if the industry becomes very busy when the strike ends as studios restock their pipelines, months of income will be hard to replace.Take Limelight Catering. Its owner, Steve Michelson, mostly mothballed the business in May when the writers’ strike started, laying off 50 staff members, nearly all of them represented by the Teamsters. Since then, he has been repairing trucks and doing other maintenance at his facility in the northern reaches of the Los Angeles area.“We’re kind of the side effect,” Mr. Michelson said. “We depend on the film industry, but we get nothing out of this. The actors and the writers, hopefully they’ll get a nice raise, but we get nothing out of it.”Unlike striking workers in California, those who lose their jobs as collateral damage of labor disputes are eligible for unemployment insurance. (New York State does allow workers on strike to collect unemployment checks.)That’s what most of Mr. Michelson’s workers are doing. Many of those who were in more physical jobs, like carrying heavy cameras and lights around, are using the time to take care of occupational injuries by claiming disability benefits.Bill Bridges, a member of the International Alliance of Theatrical Stage Employees, has worked as a grip for 25 years. Getting through the Covid-19 shutdown was hard enough, he said, and then he needed a year off for a total knee replacement. During that time, Mr. Bridges became licensed to drive a truck, and applied for jobs with the long-haul freight lines — but he said they paid only $650 a week for someone with no experience.After recovering from surgery, he was able to drive film trucks, and sometimes earned $1,600 a day. That stopped when the talent went on strike. This time, he’s back on disability to get bunion surgery.Mr. Bridges supports the strikers, but said he was way behind on bills, barely sustaining his wife and 11-year-old son. The union has started a mutual aid food pantry and a GoFundMe appeal for its members.“This is probably financially the lowest point in my life,” he said. He worries about his own union’s contract negotiations, coming up next year: “If there’s another strike, I don’t know what I’m going to do.” More

  • in

    New Union Leaders Take a Harder Line

    Pushed by angry members, unions representing actors, autoworkers and UPS employees are becoming increasingly assertive under new leadership.Shawn Fain is not a typical president of the United Automobile Workers union.Mr. Fain recently declined a symbolic handshake with the chief executives of the major Detroit automakers, a gesture that traditionally kicks off contract negotiations. He is seeking an ambitious 40 percent wage increase for rank-and-file members — in line, he says, with the pay gains of those corporate leaders over the past four years. And in a video meeting with members last week, Mr. Fain threw a list of proposals from Stellantis, the maker of Chrysler and Jeep, into a wastebasket, saying it belonged in the trash “because that’s what it is.”On one level, the circumstances that produced the union’s more aggressive leadership are idiosyncratic. Mr. Fain, who won his position in March, is the first president in the union’s history, dating back nearly 90 years, to be elected directly by its members. The change took place after a major corruption scandal engulfed two of his predecessors and several more union officials.But on another level, the forces that swept Mr. Fain into power are the same ones that have borne down on unions across a variety of industries: a feeling among members that they have spent years enduring out-of-touch leaders, meager wage growth and concession-filled labor agreements, which forced some to do similar jobs as co-workers for less pay.“We kept being told, ‘This is a good contract,’” said Shana Shaw, a U.A.W. member who has worked at a General Motors plant in Missouri since 2008. “And our members are saying, ‘It’s not a good contract!’”The long-simmering rage helps explain why, in addition to Mr. Fain, several prominent unions are now in the hands of outspoken leaders who have taken their membership to the brink of high-stakes labor stoppages — or beyond.Sean O’Brien, president of the International Brotherhood of Teamsters, has repeatedly referred to corporate leaders as a “white-collar crime syndicate” and warned that a strike of the union’s 300,000-plus United Parcel Service members appeared inevitable. (The union recently reached a tentative agreement that members are voting on.)Just after a union of more than 150,000 Hollywood actors called a strike in July, Fran Drescher, president of SAG-AFTRA, said that she was “shocked by the way the people that we have been in business with are treating us.” She added: “It is disgusting. Shame on them!”The companies, including UPS and the automakers, have indicated that they are willing to increase compensation but cannot jeopardize their long-term viability. The large Hollywood studios have offered actors pay increases but say they must be able to adapt to the decline of traditional television.Some executives have called out the unions’ more confrontational gestures. “The theatrics and personal insults will not help us reach an agreement,” Mark Stewart, a top Stellantis official, said in a letter to employees after Mr. Fain literally discarded the company’s proposals.And channeling members’ anger is not without risk: It can raise expectations and make it difficult for leaders to finalize contracts. Mr. O’Brien is facing a “vote no” campaign organized largely by UPS part-timers who argue that the union did not secure large enough raises.The populist approach is not unique to labor unions. The 2008 financial crisis and the grindingly slow recovery produced a more militant style of politics that upended established institutions around the world. The crisis helped lay the groundwork for the unexpected support of Bernie Sanders and Donald Trump in the 2016 presidential race.If anything, unions were slower to adapt to the rising anger than other institutions, largely because they were less democratic.In 2018, UPS employees voted down a labor contract negotiated by the Teamsters leadership, which created a new category of lower-paid drivers. The union’s president, James P. Hoffa, who had served in the position for nearly 20 years, used a procedural rule to impose the contract anyway.But even the change-averse labor movement could not withstand a final blow: Covid-19, and union members’ anger over their perilous working conditions as corporate profits grew at one of the fastest rates in decades.“There’s a historical memory of all the concessions they made,” said Ruth Milkman, a sociologist of labor at the Graduate Center of the City University of New York, referring to union members. “And they feel shafted. The C.E.O.s are sitting pretty with all this pandemic money that didn’t go into their pockets.”Many nonunion workers saw their wages rise rapidly thanks to a tight job market, but contracts negotiated before the pandemic often locked union members into smaller wage increases as inflation surged.Mr. O’Brien has tapped into that resentment.A vice president and ally of Mr. Hoffa in the mid-2010s, Mr. O’Brien ran to replace him in 2021, deriding his predecessor for foisting concessionary contracts onto members. He vowed to raise pay for part-timers at UPS — an unusual concern for a would-be Teamster president, even though part-timers make up a majority of the union’s members there — and secured a significant wage increase.Fran Drescher, center, president of SAG-AFTRA, came to channel her members’ anxiety over declining pay because of the rise of streaming.Jenna Schoenefeld for The New York TimesOther union leaders have followed a similar arc. In 2021, Ms. Drescher ran for president of SAG-AFTRA, the actors’ union now on strike, on the union’s moderate slate and narrowly won. But she came to channel her members’ anxieties over the rise of streaming, which has led to longer gaps in work for many actors and more limited royalties as shows are reused less often.“The streaming contracts negotiated back at the beginning of this, when certain individuals thought this would be a fad, set us up for failure,” said Linsay Rousseau, a SAG-AFTRA member who works primarily as a voice actor. She said Ms. Drescher’s outspokenness had won over even members who voted against her.In some cases, outraged rank-and-filers have taken matters into their own hands. Edward Hall, a rail worker and local union official in Tucson, said he decided to run for the presidency of the more than 25,000-member Brotherhood of Locomotive Engineers and Trainmen in early 2022. The union’s longtime president had arrived to hold a town-hall meeting about labor negotiations that had dragged on for over two years. But, Mr. Hall said, he was unable to provide frustrated members with a timetable for a deal. (Dennis Pierce, the former president, declined to comment.)Mr. Hall was elected last fall, shortly after Congress intervened to enact a labor agreement that members of several rail unions had voted down. Many workers felt the agreement did not go far enough to rein in a system of railroad operations that sought to minimize equipment and employees.“It was profitable for them,” Mr. Hall said, referring to rail carriers. “But for lack of a better way to put it, it made life on the railroad hell for regular employees.”The combination of agitated members and more assertive leaders can sometimes pry loose concessions from employers even without a strike, especially amid a worker shortage. This year, rail carriers began voluntarily addressing one of the workers’ biggest concerns: the lack of paid sick days.At UPS, Mr. O’Brien spent months preparing his members for a possible strike, even holding training sessions for strike captains and practice pickets. The pressure appeared to yield significant gains in the recent tentative agreement between the two sides, including more than $7 an hour in raises over the five years of the contract.In an interview last month, Mr. O’Brien said the Teamsters’ actions under his leadership had made the strike threat credible. “We’ve been striking since I took over,” said Mr. O’Brien, pointing to other companies where the union represents workers. David Pryzbylski, a labor lawyer at Barnes & Thornburg who represents employers, said the strident rhetoric of union leaders often reflected a genuine shift in workers’ attitudes. Still, he added, negotiations more often hinge on fundamentals like a company’s profitability and the union’s ability to disrupt operations through a strike, making it wise for employers to ignore the bluster.“A lot of times that stuff stops: They go out and say what they wanted to say, they send up a signal flare and move on,” Mr. Pryzbylski said. “If you start responding, it stays in the news cycle.”Sean O’Brien, president of the International Brotherhood of Teamsters, in white, has repeatedly referred to corporate leaders as a “white-collar crime syndicate.”Jenna Schoenefeld for The New York TimesThe full-throated demands can also backfire in economic terms. Yellow, a trucking company with 30,000 employees, declared bankruptcy several months after talks with the Teamsters broke down. The company’s chief executive said in a statement that the Teamsters’ intransigence drove Yellow out of business, though analysts note that the company showed signs of mismanagement for years.The risks may be even higher in industries under pressure to embrace a new business model.The major U.S. automakers have said that they need the ability to team up with nonunion battery manufacturers to secure additional capital and expertise. But Mr. Fain, the new U.A.W. president, has said that the failure to organize more battery workers was a major failure of his predecessors, and that battery workers must receive the same pay and working conditions that union workers enjoy at the Big Three.Many U.A.W. members say the tension between the automakers’ goals and the union’s indicates that a strike will be hard to avoid when their contract expires in mid-September. But they do not appear to be shrinking from that possibility.“We have an extremely well-oiled machine,” said Ms. Shaw, who also serves as a co-chair of the organizing committee of Unite All Workers for Democracy, a reform group within the union that assembled the slate of candidates Mr. Fain ran on. “We’ll be ready to go if happens.” More