Union wealth: The bargaining power implications

Conventional wisdom holds that U.S. unions are in crisis. Recently, however, unions have shown both boldness and initiative, remarkably in the proposed merger between the Auto Workers, Steelworkers, and Machinists. Regardless of whether labor is genuinely on the rebound, unions need money in order to retain clout and expand. I explore the financial wealth of the 28 largest U.S.-based unions during the period 1979-1993, and find that these unions, overall, maintained their wealth during a period of substantial membership decline even after adjusting for inflation. At the same time, however; unions vary widely in terms of both their wealth and related trends over the past decade and a half, but wealth has nonetheless remained substantially concentrated among a small set. Yet, several unions possess a seemingly robust financial capacity to sustain a strike, and the pursuit of additional union consolidations might reinforce this capacity. These consolidations may also have political implications.