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Why the U.S. is experiencing the largest strike and unionization boom in 50 years and its economic consequences

Why the U.S. is experiencing the largest strike and unionization boom in 50 years and its economic consequences
Photo: Reuters

August 17|

The Hollywood strike is the most obvious (and glamorous) face of a union movement that has been gaining strength in the U.S., and which this summer has produced the largest number of workers willing to fold their arms in the country in the last 50 years.

Between screenwriters, actors and unionized Hollywood workers, some 175,000 people have joined the strike since mid-July, even refraining from promoting the two biggest films of the moment, “Barbie” and “Oppenheimer.”

On the other hand, the 340,000 employees of the U.S. postal company UPS came close to declaring a total strike on August 1, which was averted thanks to a preliminary labor agreement.

Pre-settlement estimates had established that just ten days of service disruption would have cost UPS close to US$7 billion.

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In July, the United Auto Workers announced that its 150,000 members are preparing to go on strike if the so-called Detroit Big Three (Ford, Stellantis and General Motors) do not comply with agreed terms for contract renewals in September. Negotiations are still ongoing.

According to an analysis by Cornell University’s school of labor relations, as of early August, 900 strikes were ongoing in the U.S.-more than 300 of them in the United States. -more than 300 of them in California, the state responsible for 15% of the nation’s GDP.

According to U.S. labor market specialists who spoke to the BBC, 2023 represents a recent historic milestone for the revival of unionism in the country.

The trend had already been recorded as far back as 2022. A February study by the Economic Policy Institute think tank reported a nearly 50% increase in the number of workers involved in major strikes between 2021 and last year.

In 2023, a similar jump should be recorded. While the country reported 23 large mobilizations in 2021 (involving at least a few thousand employees), 2023 has so far reported 44 strikes with that same profile.

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The vigor of the workers’ movements – and the fear produced by their effects – led U.S. President Joe Biden, who calls himself “proudly pro-worker,” to appeal to Congress to disarm a movement that threatened to paralyze 115,000 railroad workers in December.

In the U.S., Congress has the power to impose labor agreements and prevent strikes in some essential services. Biden argued that a rail strike could be catastrophic for the country’s economy.

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International

Trump orders immediate U.S. nuclear testing, ending 30-year moratorium

U.S. President Donald Trump’s order to begin “immediate” testing of the country’s nuclear arsenal could, if carried out, end the nuclear testing moratorium that the United States has maintained for over 30 years.

The announcement follows Russian President Vladimir Putin’s nuclear maneuvers on October 22 from the Kremlin, which involved land, sea, and air exercises and the launch of a Yars intercontinental ballistic missile with a range of up to 12,000 kilometers.

In 1992, the U.S. Senate approved a temporary suspension of nuclear tests in August, followed by the House of Representatives in September, initially for nine months, with the goal of ending all U.S. atomic testing by September 1996.

Although then-President George H.W. Bush, a Republican, and his successor Bill Clinton, a Democrat, threatened to veto the measure, the moratorium has remained in place ever since.

The decision came after the fall of the Soviet Union, the end of the Cold War, and a political climate in which many U.S. leaders and a significant portion of public opinion believed that the country should lead global denuclearization efforts. Technological advances have also allowed the United States to verify the reliability of its nuclear arsenal without conducting atomic explosions.

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From World War II until 1992, the United States conducted over a thousand nuclear tests. Until 1963, these tests were atmospheric, after which only underground tests were performed.

Although the U.S. has not conducted nuclear detonations since September 1992, it has carried out several dozen subcritical experiments. These do not trigger chain nuclear reactions or produce atomic yield but are designed to verify the safety and effectiveness of the nuclear arsenal and remain within the limits established by the 1996 Comprehensive Nuclear-Test-Ban Treaty.

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International

Brazilian president defends coordinated anti-drug operations after deadly Rio raid

Brazilian President Luiz Inácio Lula da Silva defended on Wednesday the integration of the country’s various police forces into an anti-drug strategy that avoids civilian casualties, commenting on Tuesday’s police operation in Rio de Janeiro that left 121 dead—the deadliest in Brazil’s history.

“We need coordinated efforts that strike at the backbone of drug trafficking without putting police, children, and innocent families at risk,” the progressive leader wrote on social media.

Lula, along with several of his ministers, emphasized that organized crime is not defeated through violent confrontations in the favelas, but by measures that decapitalize these groups and reduce their financial power.

“That was exactly what we did in August during the largest operation against organized crime in the country’s history, targeting the financial core of a major organization involved in drug trafficking, fuel adulteration, and money laundering,” he stated, referring to a recent operation against the Primeiro Comando da Capital (PCC), a major national criminal group.

Lula stressed that Brazil cannot allow organized crime to continue destroying families, oppressing citizens, and spreading drugs and violence across cities.

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He added that, in a federal country like Brazil, where public security is the responsibility of regional governments, it is necessary to unify the country’s police forces.

The head of state affirmed that integrating regional and national police forces to combat organized crime will be possible with the approval of a public security bill that the government has submitted to Congress.

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International

US Deputy Secretary criticizes Mexico’s call to end Cuba trade embargo at UN

U.S. Deputy Secretary of State Christopher Landau reacted on Wednesday against Mexico’s request at the United Nations to lift the trade embargo on Cuba.

Landau expressed on X that he felt “sad” as a “friend of Mexico” after Mexico’s ambassador to the UN, Héctor Vasconcelos, reiterated solidarity with Cuba and stressed the “urgent need to end the trade embargo.”

“Let’s base ourselves on reality and not fantasies. There is no trade embargo on Cuba (…) Cuba freely receives goods and visitors from many countries,” Landau wrote.

The reaction from the State Department official came after the Mexican delegation urgently requested the removal of sanctions against Cuba at the United Nations headquarters in New York, where a majority of 165 countries voted in favor of ending the embargo imposed on the island since 1960.

Seven countries voted against the proposal, and twelve abstained. The United States, Israel, Argentina, Hungary, Paraguay, and Ukraine were among those opposing the measure, but the overwhelming support left the U.S. and its allies in the minority.

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