Tag: union elections

Union Election Filings

Real Growth in Union Election Filings Entering 2023

The National Labor Relations Board began announcing an increase in union organizing activity in early 2022. More detailed analysis showed that those gains were primarily driven by elections at numerous Starbucks stores. Otherwise, the 2022 election statistics only suggested a return to pre-COVID levels. Now, however, statistics from the final three months of calendar year 2022, appear to reflect a general increase in union election filings entering 2023.

Starbucks Effect

Election petitions involving Starbucks stores accounted for an overwhelming proportion of the NLRB’s reported increase in union election filings in its fiscal year 2022 (from October 2021 through September 2022). For more, read Why Are Union Elections Increasing in 2022?

In NLRB FY 2022, there were 349 election petitions filed seeking union representation at Starbucks stores. To date, the union has won recognition in 223 cases and lost 48 times. Twenty-nine of the petitions have been withdrawn or dismissed for various reasons. Forty-nine of the cases remain open.

Excluding Starbucks cases, 1,345 union representation petitions were filed with the NLRB between January 1, 2022, and September 30, 2022. Though the numbers were much lower in 2020 and 2021 during the height of the COVID-19 pandemic, the same period in pre-COVID 2019 saw 1,329 union representation petitions filed. In other words, Starbucks-adjusted, there was only a 1% increase in 2022.

New Year Uptick

Entering 2023, continued increases in union representation elections seem to exceed any direct Starbucks or COVID impact.

Over the second half of NLRB FY 2022 (April-September), non-Starbucks union election petitions (922) were actually below the total for the same period in 2019 (943). The fourth quarter of FY 2022 (July-September) saw only a minimal increase from 453 to 464 compared to 2019.

Then, from October 1 through December 31, 2022, there were 437 union election petitions filed that didn’t involve Starbucks. That represents a 16% increase from the same “post-COVID” period in 2021 and a nearly 8% increase from the same pre-COVID period in 2019.

Oct. - Dec. Non-Starbucks Union Representation Petitions Filed

Note that Starbucks employees are still seeking representation at new stores. Thirty-six union representation petitions were filed between October and December 2022. Only 11 were filed during those months the previous year, when the Starbucks organizing campaign had just begun. But the Starbucks monthly filing rate has decreased to about a third of what it was in NLRB FY 2022.

Where Are Union Elections Becoming More Likely?

A few states substantially account for the recent increase in Starbucks-adjusted union representation petition filings. Due to differences in population and other factors, such as historical union activity, the typical number of petitions varies considerably between states. Thus, a proportional increase in filings in a given state will have a greater or lesser impact on the total number of election petitions filed nationwide.

First, let’s look at the total number of union representation petitions filed between October and December over the past few years in several notable states. These are listed in the chart below.

Union Election Petitions
Filed Oct.-Dec.
2019202020212022
California52514774
DC9101315
Georgia5037
Massachusetts188424
New York67404254
Tennessee1125
Texas98717

Not surprisingly, California had the most petitions between October and December 2022. Conversely, Southern states Georgia and Tennessee had only about a handful. And Texas had relatively few compared to its overall population. However, these states had proportionally more union representation petitions filed in Oct.-Dec. 2022 than over the same months in the recent past.

Here are the ranked percentage increases in union election filings for these states for Q1 of the NLRB fiscal years 2022 and 2023:

  • Massachusetts: 500%
  • Tennessee: 150%
  • Texas: 143%
  • Georgia: 133%
  • California: 57%
  • New York: 29%
  • DC: 15%

And here are the percentage increases between the first quarters of the NLRB fiscal years 2023 and 2020 (the last fully pre-COVID quarter):

  • Tennessee: 400%
  • Texas: 89%
  • DC: 67%
  • California: 42%
  • Georgia: 40%
  • Massachusetts: 33%
  • New York: -19%

Large Labor-Friendly States: A Closer Look

New York

Yes, to be clear, total union representation petitions filed in New York remain below pre-COVID levels. But they are up over last year. Frankly, New York probably wouldn’t be worth mentioning here, except that it normally accounts for a significant portion of the union elections filed with the NLRB. So a modest increase from Q1 FY 2022 to Q1 FY 2023 has a material impact on the total nationwide increase. As previously discussed, it is plausible that union organizing in New York is still recovering from COVID-19 at a slower rate than the rest of the country.

In fact, we can dig deeper and learn that non-Starbucks petitions are essentially flat throughout most of New York State. All of the year-over-year increase comes from Region 29 of the NLRB. Region 29 is based in Brooklyn and covers Brooklyn, Queens, Staten Island, and Long Island. NLRB Q1 union representation petitions not involving Starbucks increased from 7 in FY 2022 to 19 in FY 2023. But that number still falls well below the 33 such filings in Oct. through Dec. 2019 (Q1 FY 2020). Meanwhile, Manhattan and Upstate New York filings have remained surprisingly consistent, with hardly any deviation among the first quarters of fiscal years 2020, 2022, and 2023.

California

Similarly, California’s increase is localized to two of the four NLRB regions covering the state: Region 20, based in San Francisco, serving the northernmost part of the state, and Region 21, based in Los Angeles and San Diego, serving the southernmost part.

California union representation petitions increased from 10 in Q1 FY 2022 to 21 in Q1 FY 2023 in Region 20 and from 12 to 21 in Region 21. The Q1 FY 2020 filings were 9 for Region 20 and 14 for Region 21, showing more than just a return to pre-COVID levels. While the central California Regions (31 and 32) increased slightly between Q1 FY 2022 and 2023, both Regions are still roughly even with Q1 FY 2020 petitions.

Decertification Petitions

The corollary to an NLRB petition seeking union representation (known as an “RC” petition) is a decertification (“RD”) petition seeking the removal of a previously recognized union representative. An earlier analysis of RD petitions for the first half of FY 2022 supported the conclusion that last year’s increase in RC filings (not involving Starbucks) may have been a COVID-related phenomenon. A 42% year-over-year increase in RD petitions over that period was actually higher than the Starbucks-excluded increase among RC petitions (36%).

Decertification petition filings remained at or above pre-COVID levels throughout FY 2022. However, it appears that trend may be dissipating. Seventy RD petitions were filed with the NLRB between October and December 2022–virtually the same as the 71 filed in the same period in 2021. While still higher than the 56 filed in October-December 2019, the RD petitions filed in Q1 FY 2023 remain below the levels for the same period of 2017 (82) and 2018 (76).

Representation Election Results

Unions typically win about 70% of the representation elections held. Many petitions filed in Q1 FY 2023 have not yet resulted in elections. Among those that have, unions have won about 75% of the time. But with so many cases yet to be decided, we don’t know whether unions are really becoming more likely to win representation status.

What Does the Recent Increase in Union Elections Means for Employers in 2023?

It’s really still too early to tell. But the latest statistics start to suggest a measurable shift toward greater unionization at private sector companies in the United States. Certain Southern states might be experiencing a particular renewed interest in union activity. Georgia, Tennessee, and Texas might constitute a current “watch list.” Areas with an existing higher propensity toward unionization, like parts of California, New York, and Massachusetts, may also be undergoing renewed employee interest in organizing.

Employers should continue to monitor these data, especially if they have any reason to suspect union organizing in their workplace.

 

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Union Organizing Update for Employers Cover Slide

Union Organizing Update for Employers (Webinar Recap)

On August 4, 2022, I presented a complimentary webinar entitled “Union Organizing Update for Employers”. For those who couldn’t attend the live webinar, I’m happy to make it available for you to watch at your convenience.

In the webinar, I discuss:

  • Representation Case Statistics
  • Starbucks’ Impact
  • Decertification & Withdrawal of Representation
  • Planning Ahead

and much more!

The National Labor Relations Board recently reported a 58% increase in union election petitions. In this webinar, I break down that statistic to help employers understand what it may mean for their company.

In addition to the deep dive into NLRB data on recent union organizing efforts, we discuss practical implications and what you should consider if a union seeks to organize your employees.

Don’t have time to watch the whole webinar right now? Click here to download the slides from the webinar.

Why You Should Watch “Union Organizing for Employers”

Most companies would prefer not to have to negotiate with a third-party union over their employees’ terms and conditions of employment. Therefore, employers should remain alert as to employee concerns at all times. Beyond knowing your own employees, you should remain aware of general trends in unionization that could affect your workforce. This webinar provides an in-depth analysis of NLRB union election statistics to better inform you on the current status of labor organizing in the U.S.

Despite general pronouncements of increased union election activity, we find two major factors driving the statistics. How do these affect your company? What should you be doing now if you want to remain union free?

Plus, learn what you should be prepared to do if a union does seek an election among your employees. There are critical decisions to be made quickly in these cases and the wrong moves can have negative legal and practical consequences.

Don’t Miss Our Future Webinars!

Click here to sign up for the Horton Law email newsletter to be among the first to know when registration is open for upcoming programs! And follow us on LinkedIn for even more frequent updates on important employment law issues.

Union Elections Increasing

Why Are Union Elections Increasing in 2022?

The National Labor Relations Board reports a 58% increase in union election petitions through the first three quarters of the 2022 federal fiscal year. Upon first glance, this statistic may seem to reflect a major uptick in union organizing. And, on the raw numbers, it does. But there appear to be two notable causes for union elections increasing in 2022: Starbucks and COVID.

Union Election Petitions

The July 15, 2022 NLRB press release generally refers to the overall increase in “union election petitions.” There are actually an array of circumstances included in these filings. They don’t just refer to cases where a union seeks an election to determine whether they may represent employees.

There were 1,892 “union election petitions” filed with the NLRB between October 1, 2021 and June 30, 2022. Some of these were filed by unions, some by employers, and others by employees, with various objectives. 1,573 of the petitions did seek union representation of then-unrepresented employees. The second largest group were 236 petitions filed by employees seeking to oust their incumbent union. Of the remaining 84 petitions, 41 sought clarification of an existing bargaining unit, for example.

Representation Election Petitions

Petitions where a union seeks initial recognition are known as representation petitions or RC petitions. This category did indeed rise significantly in the first three quarters of FY 2022 compared the same period in FY 2021. They increased 70% overall. But there’s more to the story.

First, 313 of the 1,574 RC petitions involved Starbucks stores. That’s 20% of total representation petition filings–a highly unusual occurrence for a single employer. So, yes, these Starbucks cases are a big deal for the NLRB, which has to process all of these elections. But they’re something of a statistical anomaly in evaluating the overall state of union organizing in 2022. Very few companies operate like Starbucks, with so many corporate-owned locations scattered throughout the country. Even most quick-service food establishments use the franchise model, meaning there are numerous distinct “employers” rather than a single unionizing target.

Without the Starbucks cases, there was only a 36% increase in representation petition filings so far in FY 2022. Which brings us to the second consideration:

COVID-19.

Once you take out the rampant Starbucks unionization, FY 2022 only resembles NLRB filings before the pandemic began around March 2020. See graphs below.

 

The average number of RC petitions for the first three quarters of FY 2017, 2018, and 2019 was 1,255. Almost exactly the same number as were filed in the first nine months of FY 2022 (1,260).

Decertification Election Petitions

For a check on the COVID impact on NLRB union election petition filings, let’s look at decertification petitions (RD). In these cases, employees currently represented by a union are seeking to vote the union out.

We don’t have to worry about any direct Starbucks influence here. A union has to be in place at least a year before it can be voted out. None of the Starbucks stores have yet had a union for that long.

Like representation election petitions, RD filings are up in FY 2022. The 42% increase is actually higher than the Starbucks-excluded increase among RC petitions (36%).

If the 58% overall increase in “union election petitions” were due to more demand to be unionized (other than among Starbucks employees), then that wouldn’t explain the increase in decertification efforts. So, what does? Again, the answer appears to be a return to previous pre-COVID levels.

Again, remarkably, the average number of RD petitions for the first three quarters of FY 2017, 2018, and 2019 (242) was virtually equal to the number filed in the first nine months of FY 2022 (236).

Will Union Elections Continue Increasing Beyond Pre-COVID Levels?

This question remains to be answered. Historically, about 75% of union representation elections petitions are filed in the first 3 quarters of the NLRB’s fiscal year. That means a proportionally equivalent number should be filed between July 1 and September 30, 2022. If we see that approximately 420 RC petitions (excluding Starbucks) are filed in that period, then it would continue to show a return to normalcy rather than a real shift toward increased unionization. A higher number would require further examination. For example, any apparent uptick could be a remnant of artificially low petitions during the height of the COVID pandemic. In other words, unions may still only be making up for lost time rather than experiencing fundamentally renewed interest.

Of course, if your business is union-free and wants to stay that way, the most important union election petition is the one that is or isn’t filed with your name on it. National trends are only one macro-indicator of interest in unionization. Employers should remain alert to the needs and sentiments of their own employees. Keeping them satisfied and feeling respected is the most likely path to staying out of these NLRB statistics.

 

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All data were obtained from the National Labor Relations Board website.