Report: Unionized Workers See Slower Wage Growth

Workers in the least unionized jobs experienced the strongest wage growth over the last decade, according to a new study released by the National Association of Wholesaler-Distributors (NAW).

The study, conducted by Elevated Insights Group, compared wage growth of the manufacturing and transportation industries governed by the National Labor Relations Act (NLRA), the Railway Labor Act (RLA), and the U.S. Postal Service. Between 2015 and 2024, the study found that wages in most unionized NLRA jobs grew by 26 percent. Meanwhile, wages for the least unionized NLRA jobs grew by 36 percent — the fastest growth of any group studied.

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

The study indicates that some union bargaining tactics, such as strike authorization and work stoppages, may actually lead to slower wage growth because they introduce uncertainty and volatility across the economy. NAW noted that strikes and the threat of strikes disrupt decision-making within companies, delaying capital investments and affecting long-term planning. Additionally, supply chain disruptions caused by labor actions can prompt customers to seek alternative suppliers or logistics partners.

Finally, NAW said that aggressive union leadership demands reduce companies’ ability to weather economic shifts, leading to a disproportionately higher number of layoffs in union-heavy industries. The transportation equipment and manufacturing sectors are one example of this effect, as they accounted for more than one-third of large-scale layoffs over the past decade. In 80 percent of manufacturing and transportation strikes, workers cited pay as a key demand. However, 87 percent of the sector’s lost jobs occurred at unionized companies, the study found, usually within a year of strike activity.

The complete NAW report is available here.