Mike Ilitch School of Business in the news

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Global economy 2023: What happens next with industrial action

Marick Masters, professor of business and adjunct professor of political science at Wayne State University, is included as an author in a series about the state of the global economy published by The Conversation. “US workers organized and took to the picket line in increased numbers in 2022 to demand better pay and working conditions, leading to optimism among labor leaders and advocates that they’re witnessing a turnaround in labor’s sagging fortunes…” he writes. “In total, there have been at least 20 major work stoppages involving upwards of 1,000 workers each in 2022, up from 16 in 2021, plus hundreds more that were smaller… As of 2021, union membership was at about the lowest level on record, at 10.3%. In the 1950s, over one in three workers belonged to a union. The deck is still heavily stacked against unions, with unsupportive labor laws and very few employers showing real receptivity to having a unionized workforce. Unions are limited in how much they can change public policy. Reforming labor law through legislation has remained elusive, and the results of the 2022 midterms are not likely to make it easier. Nonetheless, public support for labor is at its highest since 1965, with 71% saying they approve of unions, according to a Gallup poll in August. And workers themselves are increasingly showing an interest in joining them.”
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What Michigan’s minimum wage increase means for small biz

By Luke Laster Michigan's minimum wage rises above $10 starting this year, but what does that mean for Michigan small businesses who may have small margins. The increase from $9.87 to $10.10 was set by the "Michigan Improved Workforce Opportunity Wage Act of 2018," and is part of multiple annual increases. Marick Masters, a professor of business at Wayne State university says this raise should be manageable when it comes to small businesses in the state. "Most recent year, you had about 170,000 person increase in the number of employees in small businesses in Michigan. So that's something you want to sustain, and you wouldn't want to set the minimum wage perhaps at a level that would detract from that," says Masters. He says small businesses have been leading the way in job growth, not only nationally but in Michigan as well. He added about 2 million people in the state work for small businesses, about 48%of the workforce.
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Worker strikes and union elections surged in 2022 – could it mark a turning point for organized labor?

By Marick Masters Marick Masters, professor of business and adjunct professor of political science at Wayne State University, wrote an article for The Conversation about ongoing shifts in labor issues. He writes: Workers organized and took to the picket line in increased numbers in 2022 to demand better pay and working conditions, leading to optimism among labor leaders and advocates that they’re witnessing a turnaround in labor’s sagging fortunes. Teachers, journalists, and baristas were among the tens of thousands of workers who went on strike – and it took an act of Congress to prevent 115,000 railroad employees from walking out as well. In total, there have been at least 20 major work stoppages involving at least 1,000 workers each in 2022, up from 16 in 2021, and hundreds more that were smaller. At the same time, workers at Starbucks, Amazon, Apple and dozens of other companies filed over 2,000 petitions to form unions during the year – the most since 2015. Workers won 76% of the 1,363 elections that were held. Historically, however, these figures are pretty tepid. The number of major work stoppages has been plunging for decades, from nearly 200 as recently as 1980, while union elections typically exceeded 5,000 a year before the 1980s. As of 2021, union membership was at about the lowest level on record, at 10.3%. In the 1950s, over 1 in 3 workers belonged to a union. As a labor scholar, I agree that the evidence shows a surge in union activism. The obvious question is: Do these developments manifest a tipping point?