As Unionization Gains Momentum, Here is What Nonprofit Leaders Need to Know

Labor unions, historically the domain of blue-collar work, have experienced a surge among white-collar professions over the last few decades – most notably educators, government employees, and healthcare workers. Nonprofit employees have come on board, turning a trend that picked up steam in 2018 into a sustained momentum that accelerated in 2020 largely due to the COVID-19 pandemic. Since then, a wave of nonprofit organizations, from the prominent ACLU and Southern Poverty Law Center to smaller organizations with a few dozen employees have unionized. This trend is not limited to advocacy groups and the service sector. Dozens of art museums, including the Art Institute of Chicago, and staff at nonprofit hospitals have unionized.

Nonprofit membership surges amid years of decline

While overall union membership has dwindled by half, representing approximately 10% of workers, the nonprofit sector has seen tremendous growth. The National Professional Employees Union (the most active and prominent in the nonprofit sector) has doubled its roster from 27 nonprofit workplaces in  2020 to nearly 50 today. It is now more than 1,500 members strong, growing its rank-and-file membership by six times in as many years. Another 54 nonprofits belong to the Services Employees International Union.

When the Minnesota Council of Nonprofits ratified their contract with the Minnesota Newspaper and Communications Guild, it marked a significant shift. As the largest statewide association of nonprofits in the country, MCN is a changemaker in the industry with tremendous influence over policy, regulation and standards of practice for the nonprofit sector. Their move to unionize may have solidified the future of collective bargaining across the industry.

Culture factors driving unionization trend

The trend toward unionization may have some nonprofit leaders concerned. For many, it is simply new territory, with nonprofit leaders having limited experience with collective bargaining. Others worry about the financial aspects – namely, employees demanding salaries they cannot afford to pay.

The reality is, the drive toward unionization in the nonprofit sector is far more nuanced than compensation alone, and much of it centers around organizational culture. Here are the factors fueling the push:

1. Employees do not feel heard
Many nonprofit staff feel their organization does not listen to or consider their input around strategy and administration. Employees want to have greater say in how the organization operates. In some cases, this includes having input on relationships with questionable donors and other social causes. A union contract is a way to solidify their role.

2. Concerns around diversity
Despite a progressive stance on diversity, many employees do not feel their employer “walks the talk” when it comes to inclusion and diversity. They perceive discrepancies in hiring, advancement opportunities, and how employees are treated that do not jibe with stated policies. A union contract is frequently considered as a leverage to enforce diversity, equity and inclusion (DEI) policies.

3. Pay equity issues
While some nonprofit organizations have come under fire for excessive management salaries, most unionizing employees just want fair and equitable pay reflective of their education, experience, and the market. Although most nonprofit staff are mission-focused, they do not want to feel taken advantage of by an organization that expects them to put the mission above their own need for a living wage. They see unionization as a method to ensure and enforce pay equity.

4. Policies and work conditions
Like their for-profit counterparts, many nonprofit workers desire a collective bargaining agreement to codify policies around personal leave, grievances, and professional development. They also want to formalize an agreement around work/life balance, remote work, work hours, and other day-to-day operations policies.

Unionization’s influence on talent strategy

In many ways unionization can improve workplace culture by addressing employee concerns and bringing long-simmering issues to the surface where they can be addressed and resolved. It can provide structure for organizational policies that aid in compliance. Both of these factors can influence hiring and retention, creating a more transparent, equitable, and inclusive culture.

This, in turn, can directly impact service delivery and programming – satisfied, happy employees are more engaged, creative, motivated, and enthusiastic about their work, which drives better performance. Some would argue that unionization also makes nonprofit organizations more credible in the eyes of donors by demonstrating “they practice what they preach.”

There are also legitimate concerns. For various reasons, some individuals may not want to work under a collective bargaining agreement, so unionization could turn away great talent. If collective bargaining breaks down, strikes are a risk, and work stoppages at hospitals or human service organizations in particular can not only be life threatening but also deeply affect the community far beyond the workforce. Smaller organizations with limited budgets and those who exclusively rely on donations are especially concerned about wage and benefits demands that may simply be impossible for them to meet.

Transparency and trust are paramount.

Unions in the sector and their collective bargaining units need to be realistic, sensitive to financial concerns, and prioritize collaboration in negotiations. Trust, transparency, and clear communication are key.

Likewise, employees need to know that nonprofit management is negotiating in good faith, and that both sides are working toward their shared ideals for the organization.

Donors and funding agencies will be watching. Your approach – whether to voluntarily recognize the union and bargain proactively or to force a vote – could impact donor perceptions, contributions, and funding.

If the push for unionization occurs, nonprofit leaders can benefit by networking across sectors and geography to share and learn new strategies that benefit not only their organization, but also the sector as a whole.

Want to share your nonprofit’s story about unionization? Email info@cbnonprofitsearch.com.