State & Local Innovation

Building Worker Power in a Precarious Federal Landscape: Funding Labor Organizations to Build Power

Alexander Hertel-Fernandez

Alexander Hertel-Fernandez is Professor of Government at Columbia University. He studies the politics of U.S. public policy with a focus on labor, business, and the workplace.

Paul Sonn

Paul Sonn is the National Employment Law Project’s (NELP) state policy program director, and is the director of NELP Action, NELP’s 501(c)(4) partner organization.

Note: This post builds on a series launched in December on how states and cities can expand worker power in the United States. The series is grounded in a set of working papers and policy briefs that offer creative approaches for state and local action in a time when the federal labor law framework is increasingly unreliable. You can find the working papers compiled on the Center for Labor and a Just Economy’s website.

Labor unions and other worker organizations serve vital roles in our economy, protecting workers and fighting for their voice in the workplace and in politics. But despite skyrocketing public support for labor unions and surveys suggesting that large percentages of workers would join a union if they could, too many worker organizations lack adequate and stable funding needed to effectively achieve their missions of organizing workers, advocating for stronger labor protections, and facilitating strong implementation and enforcement of existing laws. Funding sources such as worker dues or contributions are often inadequate and difficult to collect, especially from workers struggling in low-wage jobs. Other funding sources, such as philanthropic support, are too limited and unstable from year to year. 

We’ve been exploring this capacity gap with a number of professors, lawyers, organizers, and other advocates. Today, we’re releasing two new papers outlining exciting strategies for how states and cities can pass legislation that help labor organizations build funding to support their missions. 

First, we propose that states pass laws that authorize voluntary payroll deductions that can support building worker organizations. Workers who opt into this program would have a set amount withheld from their paychecks and directed to organizations that support worker power. These deductions could include financing models, for example, that enable opportunities for workers who are not covered by collective bargaining agreements to become “associate members” of unions or other labor organizations through their financial solidarity.

This is a well-established strategy for financing government programs and civil society organizations. States have long used payroll deductions to collect taxes and benefits (such as for Social Security or Medicare), voluntary contributions to charitable organizations (such as United Way), and even union dues in many cases. It makes sense to build upon these programs to resource worker organizations and close the gap between workers who want to join unions and those who actually get to do so.

Of course, worker organizations would still need to convince workers to make these contributions in the first place, and policymakers should consider additional policy interventions that could offer stronger “value propositions” to workers in exchange for dues contributions. For example, policymakers could enable labor organizations to offer more benefits and services to workers, such as subsidizing worker organization-run job training services, insurance (such as worker compensation), or other benefits. 

In our second paper, we propose a complementary approach, in which worker organizations may receive public funding in order to play a role in helping government agencies implement worker protection laws or training programs. This may involve grants for organizations that help government agencies deliver “know your rights” education, facilitate labor standards enforcement, engage applicants for government benefits, or even administer public benefits and services (such as child care supports).

Once again, these programs are nothing new. In our paper, we collect compelling examples from the federal, state, and local levels. We know from experience that government agencies important to workers are underresourced, and partnering with worker organizations can be a win-win to stretch public funds and better serve workers, whether in terms of workers’ rights enforcement or even benefits administration.

These programs won’t revolutionize worker power overnight. They rely on adequate funding for government agencies as well as worker organizations. They also need to be structured in a way such that worker organizations can access the funds and administer them in-line with grant requirements without being overly onerous. And worker organizations still need to invest in the shoe-leather work of organizing workers.

In the end, we’re excited about the promise of the solutions outlined in these papers to help organizations build the capacity to reach more workers, and in turn, enable those organizations to more forcefully represent and advocate for the workers that they are now able to reach. The result will be to help workers build the power they need for voice in the workplace and in their communities. State and city officials have an opportunity to take meaningful steps to support workers — and help more workers act on their interest in forming or joining worker organizations.

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