The only place where you will find CEOs and Unionization going well together is this article. Cheeky? Yes. Is it true? Also, yes. In modern America, nothing is as much of an anathema to the C-suite as the word unionization.

From changing CEOs to launching sneaky Employee policies, companies have tried their best to keep employee unions at bay while trying their best to meet the demands of workers.

American CEOs and unionization

Two companies that have been caught in the storm of labor unions are Starbucks and Apple.

While shareholders are putting pressure to protect employee rights, activist investors are also joining the battle as they feel union interference might hinder the growth of a company.

The Starbucks Union

In recent times, Starbucks has come under fire for engaging in union busting tactics. In September, the global coffee chain announced new loan repayment tools and savings account programs for all US employees, who are not part of labor unions.

Currently, Starbucks has over 230 stores that have unionized. For Howard Schultz, employee unions felt like a personal attack. He has always believed that he built a global brand that cares about the well-being of its employees. Early last year, after taking charge as interim CEO, Schultz hit the road to hear what Starbucks’ employees had to say. And baristas told him about being overworked, broken equipment, supply chain snarls, and customer issues. Schultz has vehemently opposed unionization as he believes it would pit employees against their bosses, and destroy the very culture of seeing oneself as a Starbucks partner.

Most of Starbucks’ unionization efforts were driven by millennials and Gen Z workers. In September, Schultz revealed the Starbucks reinvention plan which will focus on driving investments and growth in the coming three years.

The Apple Union

The year 2022 has been momentous for Apple. As of mid-October, two stores have labor unions. The employees have revealed that they have unionized to have a greater say in how stores are run.

Although Apple has not directly addressed the unionization drive, in a statement, the company said, “We believe the open, direct and collaborative relationship we have with our valued team members is the best way to provide an excellent experience for our customers, and for our teams.” However, in May, a leaked memo revealed Apple’s anti-union talking points for managers, which contained union busting tactics. It further cemented public opinion that CEOs and unionization are an anathema to management.

It will be interesting to see Apple CEO Tim Cook’s response, as he widely is believed to a democratic leader, who likes to empower his team.

According to a CNBC survey, two-thirds of Americans now support labor unions.

Meanwhile, in April, Amazon CEO Andy Jassy echoed the view that CEOs and unionization do not go hand-in-hand. In an interview with CNBC, he stated, “It’s employees’ choice whether or not they want to join a union. We happen to think they’re better off not doing so.” He mentioned that the company prefers hearing employee opinions directly instead of routing it through unions.

Steps that CEOs must take:

Most unionization drives came about as a result of employee grievances. Baristas at Starbucks have pointed out that they started labor unions to safeguard their rights and to find solutions to long-standing problems. To paraphrase Labor Secretary Martin J Walsh, companies must come to the table and work with their partners.

It is also important to create a friendly and conducive work environment, while paying a livable wage. Most of the unionization drives stress upon better pay and job security. C-suite executives must put policies in place that show workers that they are valued, with relevant pay and benefits.

Another big ask by union workers is an opportunity for career advancement. Most hourly workers feel stuck in their positions and want access to opportunities within the company. Tyra Reeder, an Apple store employee, revealed that as skilled workers they do not feel valued.

Reeder hopes that more people will voice their grievances and make sure that their voices are heard one way or another.

The post CEOs and Unionization: The Change Sweeping across America appeared first on Industry Leaders Magazine.