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    How the Pandemic Has Added to Labor Unrest

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    While big companies wield considerable power, Covid’s economic disruption has given workers new leverage, contributing to a recent upturn in strikes.When 420 workers at the Heaven Hill spirits bottling plant near Louisville went on strike in September, they were frustrated that the company’s proposed contract could reduce their overtime pay. Many had earned extra income working seven days a week during the pandemic.“We were essential,” said Leslie Glazar, recording secretary of the local union representing spirits workers. “They kept preaching, ‘You get us through that, we’ll make it worth your time.’ But we went from heroes to zero.”The recent strike at Heaven Hill, which ended in late October after the company softened its overtime proposal, appears to reflect the current moment: Buoyed by shortages in labor and supplies that leave employers more vulnerable, and frustrated by what they see as unfair treatment during the pandemic, workers are standing up for a better deal.Data collected by the School of Industrial and Labor Relations at Cornell University shows the number of workers on strike increased in October, to more than 25,000, versus an average of around 10,000 in the previous three months.“Labor market leverage and the fact that workers have been through incredibly difficult working conditions over the past year and a half with the pandemic are combining to explain a lot of this labor activism now,” said Johnnie Kallas, a Ph.D. student and the project director of Cornell’s Labor Action Tracker.Large companies continue to have considerable power, and it is not clear that the recent job actions point to a new era of widespread strikes. Many workers who were nearing a strike appear to have pulled back from the brink, including 60,000 film and television production workers, whose strike threat was at least temporarily defused when their union reached tentative agreements with production studios. And even a doubling or tripling of strike activity would fall well below levels common in the 1960s and 70s.But the fitful economic recovery from the pandemic has eroded management’s advantages. Employers are having unusual difficulty in filling jobs — this summer, the Labor Department recorded the highest number of job openings since it began keeping such data in 2000. And for some companies, supply-chain disruptions have taken a toll on the bottom line.In a recent survey by IPC, a trade association representing the electronics industry, nine out of 10 manufacturers complained that the time it takes to make their goods had increased. Nearly one-third reported delays of eight weeks or more.Workers at Kellogg in Battle Creek, Mich., have been on strike since early October.Nicole Hester/The Grand Rapids Press, via Associated PressMany workers also contend that their employers have failed to share enormous pandemic-era profits, even as they sometimes risked their lives to make those earnings possible. Striking workers at John Deere, whose union announced a tentative agreement with the company over the weekend, have pointed out that Deere is on pace to set a record profit of nearly $6 billion this fiscal year even as it sought to end traditional pensions for new hires. The United Automobile Workers said a vote on the contract was expected this week.Workers say that when companies do offer raises, the increases are often limited and don’t make up for the weakening of benefits that they have endured for years.That helps explain why the upturn in labor action dates back to 2018, when tens of thousands of teachers walked off the job in states like West Virginia and Arizona, though the lockdowns and layoffs of the pandemic initially suppressed strike activity. With workers in both Democratic and Republican states feeling wronged, the strike impulse tends to transcend partisan divides.One increasingly common complaint is the so-called two-tier compensation structure, in which workers hired before a certain date may earn a higher wage or a traditional pension, while more recent hires have a lower maximum wage or receive most of their retirement benefits through a variable plan like a 401(k).Frustration with the two-tier system helped propel a six-week strike at General Motors in 2019, and has loomed over several strikes this year, including Kellogg and Deere. Deere workers hired after 1997 have much smaller traditional pensions.In some cases, workers have even grown skeptical of their union leadership, worrying that negotiators have become too remote from the concerns of the rank and file.This is particularly true at the United Automobile Workers, which has been wracked by a corruption scandal in which more than 15 people have been convicted, including two recent presidents. Some Deere workers cited discontent with their union’s leadership in explaining their vote against the initial contract the union had negotiated.It is also a feeling that some Hollywood crew members have expressed about negotiations handled by their union, the International Alliance of Theatrical Stage Employees. “They’re not bad people, they’re working in good faith,” said Victor P. Bouzi, a sound mixer and IATSE member based in Southern California. “But they’re not seeing what’s happening to people and how we’re getting squeezed down here.”The International Alliance of Theatrical Stage Employees prepared for a strike before negotiators reached tentative agreements with film and television studios.Jenna Schoenefeld for The New York TimesYet for every force pushing workers toward a strike, there are others that push in the other direction.Union leaders can be reluctant to strike after having negotiated a deal for workers. IATSE leaders are endorsing the tentative agreements they reached with the studios in October, and even those who oppose them believe it will be a long shot for the membership to vote them down.Matthew Loeb, the IATSE president, said that 36 locals were closely involved in developing the union’s bargaining objectives and that “our members demonstrated incredible union solidarity that stunned the employers and helped us to achieve our stated goals.”For their part, companies often pre-empt a labor action by improving compensation, something that appears to be happening as employers raise wages, though that is also to attract new workers. (It’s less clear if the wage increases are keeping up with inflation outside leisure and hospitality industries.)Manufacturing workers contemplating strikes may have jobs that are relatively sought-after in their cities and towns, making workers less keen to risk their jobs in the event of a strike, and potentially easier to fill than a quick glance at the number of local openings would suggest.And the mere act of striking can exert an enormous psychological and financial toll in an economy where workers have a limited safety net. When unionized workers receive strike pay, it’s typically a fraction of their usual pay, and they must often picket outside their workplace to receive it.Companies can use the legal system to place restrictions on them — as with Warrior Met Coal in Alabama, where about 1,000 workers represented by the United Mine Workers of America have been on strike for seven months. The company recently won a court order prohibiting picketing within 300 yards of entrances..css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-3btd0c{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-3btd0c{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-3btd0c strong{font-weight:600;}.css-3btd0c em{font-style:italic;}.css-1kpebx{margin:0 auto;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}#NYT_BELOW_MAIN_CONTENT_REGION .css-1kpebx{font-family:nyt-cheltenham,georgia,’times new roman’,times,serif;font-weight:700;font-size:1.375rem;line-height:1.625rem;}@media (min-width:740px){#NYT_BELOW_MAIN_CONTENT_REGION .css-1kpebx{font-size:1.6875rem;line-height:1.875rem;}}@media (min-width:740px){.css-1kpebx{font-size:1.25rem;line-height:1.4375rem;}}.css-1gtxqqv{margin-bottom:0;}.css-1g3vlj0{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-1g3vlj0{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-1g3vlj0 strong{font-weight:600;}.css-1g3vlj0 em{font-style:italic;}.css-1g3vlj0{margin-bottom:0;margin-top:0.25rem;}.css-19zsuqr{display:block;margin-bottom:0.9375rem;}.css-12vbvwq{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;}@media (min-width:740px){.css-12vbvwq{padding:20px;width:100%;}}.css-12vbvwq:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-12vbvwq{border:none;padding:10px 0 0;border-top:2px solid #121212;}.css-12vbvwq[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-12vbvwq[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-12vbvwq[data-truncated] .css-5gimkt:after{content:’See more’;}.css-12vbvwq[data-truncated] .css-6mllg9{opacity:1;}.css-qjk116{margin:0 auto;overflow:hidden;}.css-qjk116 strong{font-weight:700;}.css-qjk116 em{font-style:italic;}.css-qjk116 a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;text-underline-offset:1px;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:visited{color:#326891;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:hover{-webkit-text-decoration:none;text-decoration:none;}As difficult as a strike can be when workers are unionized, it is far more difficult when they’re not. Nonunionized workers often find strikes harder to organize and harder to endure because of the lack of pay. They are typically more vulnerable to potentially unlawful responses by employers, which unions have the legal muscle to resist.It is perhaps no surprise that as the rate of union membership has fallen, so has the number of strikes. Until the early 1980s, the country typically saw more than 200 a year involving 1,000 or more workers, versus 25 in 2019, the highest in almost two decades. Far fewer than 20 began this year.Striking workers outside a John Deere plant near Des Moines. The company’s pension system has been an issue in the strike.Kelsey Kremer/The Des Moines Register, via Associated Press“The volume is quite minimal,” said Ruth Milkman, a sociologist of labor at the Graduate Center of the City University of New York. “That’s partly because only 6 percent of the private sector is organized.”The recent strike at Heaven Hill in Bardstown, Ky., illustrates the complicated calculus facing workers. An analysis by the employment site ZipRecruiter showed that when the strike vote was taken in September, job postings in the Louisville area had increased by almost twice the percentage they had nationwide during the pandemic.After the company threatened to bring in replacement workers, the employees were dismissive. “No one can find workers now — where do they think they’ll find 400?” Ms. Glazar, the local union official, said shortly before the strike ended. “That’s the only thing that keeps us smiling out there.”There were also indications that Heaven Hill was running low on inventory as the strike wore on, crimping the company’s ability to age and bottle alcohol that it produced in Louisville. “We could see the truck movement had slowed down from week one to week six — there were not near as many trucks in and out,” Ms. Glazar said.Josh Hafer, a company spokesman, said, “There may have been some small-scale products impacted, but not to any large degree.”Still, the workers were under enormous stress. Their health benefits ended when their contract expired, and some workers found their insurance was no longer valid while trying to squeeze in a final doctor’s appointment.And while jobs in the area appeared plentiful, many workers preferred to stay in the whiskey-making business. “I like what I do, I enjoy everything about bourbon,” said Austin Hinshaw, a worker who voted to strike at the Heaven Hill plant. “I have worked at a factory before, and it’s not my thing.” In late October, Mr. Hinshaw accepted a job at a distillery in town where he had been applying for months.A few days earlier, Heaven Hill management had worked out a new agreement with the union. The proposed contract included a commitment to largely maintain the existing overtime pay rules for current workers, though it left open the possibility that future workers would be scheduled on weekends at regular pay, which grated on union members. The company also offered a slightly larger pay increase than it had offered just before the workers’ contract expired in September.In a statement, Heaven Hill pointed to the generous health benefits and increased wages and vacation time in the new contract.The company’s proposal divided the members, many of whom wanted to keep fighting, but more than one-third voted in favor of the contract, the minimum needed to approve it and end the strike.“There are a lot of mixed emotions,” Ms. Glazar said. “Some of them are just disappointed. They thought that it would have been better.”Peter S. Goodman More

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    John Deere Workers Strike After Failed Contract Talks

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    About 10,000 unionized employees walked out, as worker activism rises during nationwide labor shortages.Employees of Deere & Company formed picket lines after some 10,000 unionized workers went on strike to demand better pay and benefits at a time when the agriculture equipment maker was on track for a year of record profits.Meg Mclaughlin/Quad City Times, via Associated PressSome 10,000 unionized workers at the agriculture equipment maker Deere & Company went on strike early Thursday after overwhelmingly rejecting a contract proposal worked out with the company by negotiators for the United Automobile Workers union.“Our members at John Deere strike for the ability to earn a decent living, retire with dignity and establish fair work rules,” Chuck Browning, the director of the union’s agricultural department, said in a statement. “We stay committed to bargaining until our members’ goals are achieved.”Deere said it was “determined to reach an agreement” that would benefit workers. “We will keep working day and night to understand our employees’ priorities and resolve this strike, while also keeping our operations running for the benefit of all those we serve,” Brad Morris, the company’s vice president for labor relations, said in a statement.The strike deadline was announced on Sunday after the union said its members had voted down the tentative agreement reached on Oct. 1 with the company, which makes the John Deere brand of tractors. Union negotiators had said the proposal would provide “significant economic gains” and “the highest-quality health care benefits in the industry.”But workers, who are spread out across 14 facilities, primarily in Iowa and Illinois, criticized the deal for insufficiently increasing wages, for denying a traditional pension to new employees and for failing to substantially improve an incentive program that they consider stingy.“We’ve never had the deck stacked in our advantage the way it is now,” said Chris Laursen, a worker at a John Deere plant in Ottumwa, Iowa, who was president of his local there until recently.Mr. Laursen cited several sources of leverage for workers: the profitability of Deere & Company — which is on a pace to set a record of nearly $6 billion this fiscal year — as well as relatively high agricultural commodity prices and supply-chain bottlenecks resulting from the pandemic.“The company is reaping such rewards, but we’re fighting over crumbs here,” he said.Deere, long known to farmers for its green-and-yellow product line, is a publicly traded company valued at more than $100 billion. After a brief plunge early in the pandemic, its shares have tripled, far outpacing the overall market. They rose slightly on Thursday.Steve Volkmann, an analyst with the investment bank Jefferies, acknowledged that Deere was doing well. “Crop prices have increased with every other commodity,” he said, “and when farmers make money, they tend to buy equipment.” And he said Deere’s leadership in agricultural technology had helped make it more profitable.Mr. Volkmann said the financial damage from the labor dispute, if it was settled quickly, would be limited. The company’s bigger challenge, he said, comes from the pandemic’s disruption to the worldwide supply chain, which has caused shortages and raised prices for some components.“Deere is already under some stress,” he said. “They’re not producing at full capacity anyway — they just don’t have the parts.”As many employers grapple with worker shortages, workers across the country appear more willing to undertake strikes and other labor actions.Last week, more than 1,000 workers at Kellogg, the cereal maker, went on strike, and Mondelez International, which makes Oreos and other Nabisco snacks, experienced a work stoppage this summer. Coal miners in Alabama have been on strike for months. Workers have also waged prominent union campaigns at Amazon and Starbucks.Those on strike elsewhere in the country have raised similar complaints as the Deere employees, pointing out that they put in long hours as essential workers during the pandemic but are not sharing much of the profits that their companies reaped during that time.“There was no reprieve — everyone was working seven days a week,” said Dan Osborn, the president of a Kellogg workers local in Omaha.Mr. Osborn said his members were upset over a two-tier compensation system that they worry puts downward pressure on the wages and benefits of veteran workers. “Divide and conquer, it’s an age-old adage,” he said.The Facebook pages of some U.A.W. locals on Thursday encouraged workers to turn out for picketing, which one said would qualify them for strike pay and health insurance.Union members at General Motors walked off the job for almost six weeks in 2019 before agreeing to a four-year contract that included substantial wage increases and closed disparities in a two-tier wage structure.Under the tentative deal at Deere, wages would have increased 5 or 6 percent this year, depending on a worker’s pay grade, and then an additional 3 percent each in 2023 and 2025.Pension benefits would have increased but would have remained substantially lower for workers hired after 1997, and many workers were disappointed to see benefits eliminated for new hires, Mr. Laursen said.Other workers are perturbed about the lack of health care benefits for retirees, which also ceased for workers hired after 1997.Analysts suggested that Deere might be wary of taking on additional long-term obligations because its current level of profitability is unlikely to last.“It’s a very cyclical business,” said Ann Duignan, an analyst with J.P. Morgan. “They may be having record profits this year, but we believe we are close to a peak.”Many workers were frustrated with similar elements of the last contract that the union negotiated with Deere, in 2015, and had been anticipating a showdown ever since.“I’ve been saving since the last contract,” said Toby Munley, a Deere electrician in Ottumwa, where U.A.W. members voted to reject the previous contract, as did another local in Iowa. “People were feeling it then.” That contract was narrowly approved overall.Looming over the negotiation is suspicion among rank-and-file workers toward the international union after a series of scandals in recent years involving corruption in the union and illegal payoffs to union officials from executives at the company then known as Fiat Chrysler.The scandals led to more than 15 convictions, including those of two recent U.A.W. presidents.Mr. Munley said he had worried that the U.A.W. would try to negotiate a marginally better deal and sell the membership on it before the strike deadline Wednesday night, but said he was encouraged that the union had held firm.“I was happy to see we didn’t come back with a tentative agreement,” he said. “It restored some of my faith in my international.”Nelson D. Schwartz More

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    Biden's Plan for Electric Vehicles: What You Need to Know

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    The president is hoping to make electric vehicles more affordable to turn a niche product into one with mass appeal.President Biden is a muscle-car guy — one of his most prized possessions is a 1967 Corvette that he got from his father. But he’s trying to make this an electric vehicle world.The $2 trillion infrastructure plan that he unveiled on Wednesday is aimed at tackling climate change in part by spending up to $174 billion to encourage Americans to switch to cars and trucks that run on electricity, not gasoline or diesel. That is a large investment but it might not be enough to push most Americans toward E.V.s.Despite rapid growth in recent years, electric vehicles remain a niche product, making up just 2 percent of the new car market and 1 percent of all cars, sport-utility vehicles, vans and pickup trucks on the road. They have been slow to take off in large part because they can cost up to $10,000 more than similar conventional cars and trucks. Charging E.V.s is also more difficult and slower than simply refilling the tank at far more prevalent gas stations.Mr. Biden hopes to address many of those challenges through federal largess. He aims to lower the cost of electric vehicles by offering individuals, businesses and governments tax credits, rebates and other incentives. To address the chicken-and-egg problem of getting people to try a new technology before it is widely accepted, he hopes to build half a million chargers by 2030 so people will feel confident that they won’t be stranded when they run out of juice. And he is offering help to automakers to get them to build electric vehicles and batteries in the United States.“We find ourselves at a unique moment here where most American businesses and many states are looking toward a decarbonized future, but recognize there’s a big lift on the infrastructure side,” said Bob Perciasepe, president of the Center for Climate and Energy Solutions, an environmental research group. “This investment alone obviously won’t solve the climate problem or fix all of the infrastructure in the United States but it will be a huge boost.”Automakers see the writing on the wall and many, including General Motors, Volkswagen and Ford Motor, have made big E.V. promises. But even they acknowledge that they will need federal help.A charging station at a housing complex in Utah.Lindsay D’Addato for The New York Times“This transformation is greater than any one policy, branch or level of government, or industry sector,” a group representing manufacturers, suppliers and automotive workers said in a letter to Mr. Biden on Monday. “It will require a sustained holistic approach with a broad range of legislative and regulatory policies rooted in economic, social, environmental and cultural realities.”The letter called for grants, loans, tax credits and tax deductions to promote research and manufacturing. The authors of the letter, which included industry groups and the United Auto Workers union, called for investment in job training programs and federal help in promoting development of minerals and other raw materials in the United States.But production is only one piece of the puzzle. The transition away from gas-powered vehicles rests on convincing consumers of the benefits of electric vehicles. That hasn’t been easy because the cars have higher sticker prices even though researchers say that they cost less to own. Electricity is cheaper on a per mile basis than gasoline, and E.V.s require less routine maintenance — there is no oil to change — than combustion-engine cars.The single biggest cost of an electric car comes from the battery, which can run about $15,000 for a midsize sedan. That cost has been dropping and is widely expected to keep falling thanks to manufacturing improvements and technical advancements. But some scholars believe that a major technological breakthrough will be required to make electric cars much, much cheaper.“There’s a good sense that at least for the next maybe five years or so they’re going to keep declining, but then are they going to level off or are they going to keep declining?” Joshua Linn, a professor at the University of Maryland and a senior fellow with Resources for the Future, an environmental nonprofit, said about battery costs. “That won’t be enough, so then that’s given rise to a lot of attention to infrastructure.”The federal government and some states already offer tax credits and other incentives for the purchase of electric cars. But the main such federal incentive — a $7,500 tax credit for the purchase of new electric cars — begins to phase out for cars once an automaker has sold 200,000 E.V.s. Buyers of Tesla and G.M. electric cars, for example, no longer qualify for that tax credit but buyers of Ford and Volkswagen electric cars do.Mr. Biden described his incentives for electric car purchases as rebates available at the “point of sale,” presumably meaning at dealerships or while ordering cars online. But the administration has not released details about how big those rebates will be and which vehicles they would apply to.Another big concern is charging. People with dedicated parking spots typically charge their E.V.s overnight at home, but many people who live in apartments or have to drive longer distances need to use public charging stations, which are still greatly outnumbered by gas stations.“The top three reasons consumers give for not buying E.V.s are lack of charging stations, time to charge, and the cost of E.V.s,” said Sam Abuelsamid, an analyst at Guidehouse Insights. “They seem to be really emphasizing all three. So, over all, it looks very promising.”There are well over 100,000 gas stations in the United States, most with multiple pumps. Mr. Biden’s plan calls for a national network of 500,000 electric vehicle chargers within the decade, up from about 41,000 charging stations with more than 100,000 outlets today, according to the Energy Department.“One of the things that needs to be addressed is getting chargers into places where people only have on-street parking, like in cities and urban areas where you don’t have a driveway or garage,” Mr. Abuelsamid said. “If they can address that, it will make E.V.s available to a lot more people.”The government in China, which leads the world in the use of electric cars, has done much more than the United States to speed up the installation of chargers.“It is, famously, one of the ways that China has become the No. 1 country in E.V.s on most dimensions,” John Paul MacDuffie, a professor of management at the Wharton School at the University of Pennsylvania, said in an email.Even with incentives for manufacturers, a robust charging network and a willing public, the transition to electric cars may take a few decades. Carmakers have improved vehicle reliability in recent years, so many cars stay on the road a long time. The average age of cars and light trucks in the United States is approaching 12 years, up from 9.6 years in 2002, according to IHS Markit, an economic forecasting firm.Neal E. Boudette More