Subject: The Four-Day Workweek: Union Pipe Dream Or A Potential Reality?: LRI INK

December 14, 2023

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On behalf of everyone at LRI, safe and happy holidays. This will be our last newsletter of the year. We will be back with new articles on the blog on January 3rd, and a new issue of INK on January 11th.

The Four-Day Workweek: Union Pipe Dream Or A Potential Reality?

By Kimberly Ricci

2024 will bring many labor-related developments, including major contract negotiations within many industries. The results of these discussions could impact Big Labor’s overall strength, which is one of the goals of the United Auto Workers in launching their aggressive campaign to organize 13 non-union car manufacturers. 


UAW President Shawn Fain also has another goal to land himself in the history books: He is not going to stop talking about the 4-day/32-hour workweek for five days/40 hours of pay. Fain circled back to this failed Big Three demand after previously calling it a “very realistic goal.” Ford CEO Jim Farley countered that this demand would cause automaker bankruptcy, leading to an untold number of lost jobs. 


Let’s back up for a moment for some historical perspective.

In the mid-1920s, Henry Ford helped to popularize the 40-hour work week, down from an untenable 80-100 hours per week during the height of the industrial revolution. In 1938, part of the Fair Labor Standards Act codified 40 hours as the full-time standard, and two-day weekends became the U.S. norm through our present times.


That process didn’t go entirely smoothly. President Franklin D. Roosevelt advocated for a 30-hour workweek without success. Economist John Maynard Keynes also famously predicted that 2030 work weeks would be 15 hours long. Clearly, that isn’t in the cards for various reasons, and (spoiler alert) Keynes himself possibly “died from working too hard.”


Fast forward to the brink of 2024, and a few hundred companies have tested four-day workweeks as part of the 4 Day Work Global initiative. Many of these other companies operate in office and nonprofit settings.


Yet some manufacturing companies did participate, and a motor home manufacturer, Advanced RV in Ohio, decided that a four-day workweek would be their ongoing practice. Workers say that they feel refreshed after every three-day weekend, and a shorter work week provides incentive to innovate shortcuts and efficiencies. This approach, however, does require a company to have enough wiggle room to allow for “a tolerance for risk.” 

 

Other manufacturing settings embraced the approach, too. In Italy, Lamborghini has decided to “alternate a five-day week with a four-day week, overall cutting 22 days of work each year” with no cut in pay, according to unions in that deal. It could, however, be argued that a luxury car manufacturer has more financial leeway to achieve this milestone.


Elsewhere, some analysts wonder if happiness and productivity could best be served by a 5-day work week with 32 hours of work, but ultimately, there is no one-size-fits-all approach. Rather, the goal should be to ensure each company has the right to run its business as it sees fit. That right begins to slip away once a union enters the picture. 


The trick, as always, is not to provide opportunities for unions to gain a foothold. There’s no substitute for a healthy workplace where workers feel that their concerns are listened to and addressed by management. Would most people love a 4-day work week? C’mon, you know that’s true. 


With that said, employers could decide, on an individual basis, to allow more flex time (or a comparative perk) for workers if the job setting allows. It’s at least something to consider as unions gear up for a 4-day workweek battle in 2024 and beyond.

Starbucks’ Cup Of Woes: A Coffeehouse Giant In Need Of Some Holiday Cheer

By Kimberly Ricci

This month, Starbucks requested to reopen contract negotiations with Workers United after a 6-month impasse. The company further expressed intent to reach contracts with all unionized stores in 2024. That’s quite a leap since none of the 380+ unionized cafes have a contract yet.

This notably softened stance towards Workers United follows a labor-relations audit finding that no “anti-union playbook” existed for Starbucks, even if corporate and management’s response to unionizing wasn’t handled in the most graceful way (ex-CEO Howard Schultz was decidedly combative towards Workers United during Senate testimony). The audit also called upon the company to revise its Global Human Rights Statement. And Starbucks is not only coping with reputational harm while addressing shareholder concerns, but the headaches continue:

  • The latest NLRB chess move: The board is pressing Starbucks to reopen 23 shuttered locations while accusing the company of illegally closing them to quash union activity. It’s a charge that the company denies while citing reasons including increased violence in some cafes and that certain locations were not profitable. However, Workers United claimed that they should have been notified in advance of the closings and allowed to bargain over the decision to close stores. The board also wants workers to be rehired and compensated for lost wages following the closings, which included eight cafes in Seattle, where the company is headquartered. The case will go to an administrative judge and then possibly back to the NLRB and onto a federal appeals court if it reaches that level. 

  • Other recent NLRB moves against Starbucks: The company has been fending off GC Jennifer Abruzzo’s 10(j) injunction efforts. Federal judges have also validated a mail-ballot union election and ruled that the company cannot bar workers from wearing union paraphernalia on the job.

  • Still more PR woes: Not only have baristas continued to wage walkouts, including the recent Red Cup Rebellion strike, but Starbucks was placed in an uncomfortable position when Workers United began using the company logo to wade into the Israeli-Palestinian conflict. The resulting political firestorm has led to calls for boycotts along with vandalism of cafes near Houston, San Francisco, and Boston. This adds up to a dearth of holiday cheer reverberating throughout the company. 

This week, CEO Laxman Narasimhan marked his first anniversary with a letter to workers. In doing so, he characterized the vandalism and protests as being “influenced by misrepresentation on social media” about what Starbucks stands for. He also stressed the need to protect workers’ safety in light of these incidents.

It’s an unenviable position and only the latest obstacle for Narasimhan in steadying the ship after baristas expressed how they felt that Schultz glossed over their reasons for seeking third-party representation. Since entering his position, Narasimhan has pledged open communication and has worked regular barista shifts next to frontline workers. 

Whether or not the company’s decision to reopen contract negotiations will help ease ongoing worker dissent remains to be seen. Surely, Starbucks and its shareholders would prefer not to have to address this mess at all, and it’s a reminder that accessible leadership can solve grievances more smoothly in a proactive way rather than in front of a worldwide audience.

2024's Union Contract Negotiations: An Overview

By Michael VanDervort

As we roll into 2024, the labor scene is buzzing with key union contract negotiations, from telecommunications to education. Here's a peek at what's coming up and why it matters.


Key Players in the Mix

Telecommunications: With contracts covering several states, AT&T's talks are about improving work life for the technicians on the ground.


Manufacturing: Daimler Truck and Boeing

Daimler Truck's 7,000 workers are set for talks, which could set trends in manufacturing. But the real spotlight is on Boeing. The contract for 30,000 Machinists in Washington state is up for renewal. This is more than a contract negotiation; it's a defining moment in manufacturing labor relations, given Boeing's industry clout and past tensions.


Retail: 28,000 workers at Meijer are up for wage, benefits, and time-off discussions, highlighting key retail sector issues.


Education: Chicago and Philadelphia Teachers' contracts are up, posing problems in major public systems with potential impacts on education policies and conditions.


The Bigger Picture

Economic and Labor Impacts: These negotiations are about more than individual sectors; they're about setting economic and labor trends. Success or failure in these talks could influence labor's overall strength.


Policy Influence: With education and public services in the mix, expect some spillovers into policy discussions.


Looking Ahead

Businesses and unions are prepping for a significant year. The outcomes could shape the labor landscape, not just for 2024 but for years to come. Keep an eye on Boeing's negotiations in particular – they're expected to be the most pivotal of the group.

Links For This Week:


Santa Or Grinch: Will Union Promises Continue To Fail For Higher-Ed Workers In 2024?

Link


Wells Fargo Becomes First Big US Bank With Unionized Branch 

Link


Tesla To Raise Wages At Nevada Gigafactory Amid Pressure To Unionize

Link


UAW Union Uses Pressure Tactic to Silence Employers

Link


The Cultivation Of A Labor Landscape: Cannabis As Fruitful Union Territory

Link




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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years, LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

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