Unions Crucial in Closing Public-Private Wage Gap, New Report Finds

As the wage gap between public and private sector employees grows, a recent study from the Economic Policy Institute highlights the efficacy of collective bargaining rights in bridging this divide. This report emphasizes how unions can positively impact wages in the public sector.

The document supports the introduction of the Public Service Freedom to Negotiate Act (PSFNA). This legislation aims to establish a baseline for collective bargaining rights for public service workers across the nation, thereby enhancing their negotiation capabilities.

The growing influence of unions, as evidenced by their increasing popularity, can be partly attributed to the policies of the Biden-Harris administration over the past four years. These policies have actively promoted the labor movement and workers' rights to collective bargaining.

In her campaign, Vice President Kamala Harris has vowed to uphold worker rights if elected as president. She has committed to enacting both the PSFNA and the PRO Act, which seeks to simplify union membership processes and penalize employers who obstruct workers' unionization efforts.

A Clear Wage Discrepancy

The report reveals a significant wage disparity for public sector workers in states without collective bargaining rights. These workers earn about 20% less than their private sector counterparts, a gap that increases to nearly 23% in states that completely prohibit collective bargaining for public sector employees.

Conversely, the smallest wage gap, at 17.6%, is observed in states where collective bargaining rights exist. In such states, unions significantly boost wages for Black, Hispanic, and non-college educated public sector employees, sometimes surpassing the earnings of their private sector peers.

This analysis covers data from March 2020 to March 2024, providing insights into the wage dynamics during this period.

Engagement and Action

Strengthening collective bargaining in the public sector is essential to addressing staffing shortages in public services. The AFSCME has spearheaded initiatives like the Staff the Front Lines initiative, launched in the summer of 2024, to attract and retain skilled public service workers.

Unions continue to play a vital role in supporting public sector workers and their families, reinforcing community ties across the country.

For further information on supporting public service workers and the Public Service Freedom to Negotiate Act, visit here. To find out more about how to support the Harris-Walz campaign, click here.