Higher Prices Ahead Thanks to War, Corporate Greed

While working people have been feeling the pain of higher gas prices every time we fill up the tank, the ongoing U.S. war with Iran (as well as Ukraine’s targeting of Russian refineries) has also pushed diesel prices to an all-time high [1]. Due to its essential status as a part of global shipping of all commodities, high diesel prices mean Americans will be paying more for everything from food to consumer goods, with price pass-throughs expected to begin in a matter of weeks.

The AFL-CIO recently issued a report highlighting another development likely to drive grocery prices even higher: the adoption of electronic shelf labels in grocery stores, which will allow supermarkets to use algorithmic pricing software to maintain the highest possible prices. “This is a technology that both is enabling this kind of ‘how do we extract the absolute most money out of grocery shoppers that is humanly possible’ and ‘how do we squeeze our workers as much as is humanly possible’,” Lauren McFerran, executive director of the AFL-CIO Tech Institute told The Guardian [2]. Electronic shelf labels are also expected to cost grocery workers between $1.6 and $6.9 billion in lost jobs and wages.

Nearly Half of Private-Sector Workers Saw Wages Decline From 2021 to 2024

A paper published last month by ADP and the University of Chicago [3] studied the pay histories of 16 million private sector workers in the U.S. It found that, when discounting workers who changed jobs, nearly half (43 percent) saw their real wages decline between 2021 and 2024, with the average real decline of nine percent.

Meanwhile, Forbes reported [4] that last year a record 5.8 million workers were illegally paid lower than minimum wage. This amounts to five percent of all nonexempt (i.e., hourly) workers. Wage theft is most common in states like California, New York. and Illinois, where minimum wages are above the federal level of $7.25 an hour.

Deportation Policies Have Shut Down Job Creation

The Economist recently reported [5] how Trump’s deportation policies have nearly shut down the country’s job creation engine. The U.S. had its first net decline in migrants in over 50 years, and there are simply not enough native-born workers to pick up the slack. The Congressional Budget Office estimates that the working-age U.S. population will be 2.3 million lower at the end of 2026 than was projected, and according to Bureau of Labor Standards statistics, the number of people in the labor force has fallen by one million since the start of the year.

The experience of other countries, such as Japan and much of Europe, demonstrates that when the working-age population is stagnant or shrinking, it becomes all-but-impossible for the economy to add additional jobs. In addition, the smaller population means fewer consumers buying goods, utilizing services, and renting or buying homes. All of this discourages businesses from expanding, investing in new capital, or hiring additional staff.

Canadian Unions Demand Improved Unemployment Insurance to Deal with Tariff Chaos

As the trade war between the U.S. and Canada escalates, Canadian unions, including UE’s close ally Unifor, have called on their government [6] to take action to support workers affected by the resulting economic disruption. The unions are demanding improvements to the country’s system of unemployment insurance (called “employment insurance,” or EI, in Canada), both expanded access and increased benefits. They are also demanding that the government provide direct assistance to affected workers and communities, and that the $4 billion being allocated to support Canadian businesses be tied to protecting jobs, not just profits.

“Workers are being asked to absorb the economic shock of a trade war they did not start and cannot control,” said Unifor Quebec Director Daniel Cloutier. “As this trade war continues, the federal government must be ready to go further to protect workers, support communities and ensure people are not left carrying the cost of this escalating fight.”

New NYC Office of Worker Power Inspired by UE Project

New York City Mayor Zohran Mamdani recently announced [7] that he would create a new Mayor’s Office of Worker Power “to help workers organize themselves and build power to improve their working conditions and their lives.” A number of press outlets noticed the connection to a project launched in 2020 by UE and the Democratic Socialists of America (DSA). The City Reporter said, “The new office is inspired by the Emergency Workplace Organizing Committee, a joint effort of the Democratic Socialists of America and United Electrical Workers that has since its 2020 inception helped thousands across the country organize unions in the workplace.” The Washington Examiner reported, “The office is said to be inspired by the Emergency Workplace Organizing Committee, a 2020 joint effort of the Democratic Socialists of America and the United Electrical Workers.”