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0 pointsplainOldText7y ago0 comments

> Here's a fact about unions: Average union wages are 18% higher than non-union wages.

According to the paper you referenced, from the Bureau of Labor Statistics, in private industries and under the category "Management, professional, and related occupations" employees earned more actually – $35.70/h – compared to workers represented by unions, who earned an average of $32.95/h.

I would assume the majority of software engineers work in private industries, thus would fall under the aforementioned category, and as a result would actually earn more by not joining a union. Am I missing something here?

Furthermore, it's unclear whether those wages include other types of compensation, such as stock grants and bonuses for example, in which case the difference would be even greater.

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6 comments · 3 top-level

JamesBarney7y ago· 2 in thread

Here's the relevant paragraph.

> In private industry, there is a different pattern among workers in this occupational group: those represented by unions earned an average of $32.95 per hour, while those not represented by unions earned $35.70 per hour. The wage advantage for nonunion workers in this occupational group reflects the concentration of union workers in certain relatively low-paying occupations in business and financial operations, such as claims adjusters, accountants, and training specialists.

zaksoup7y ago

Thank for pointing this out. The 18% figure is from the global average and that analysis of the private industry number certainly suggests that as unions become more prevalent in higher-paying occupations the trend there will reverse.

plainOldTextOP7y ago

Indeed, but in the private industry there is also a different pattern in compensation, as in addition to a base salary, private employers offer bonuses and stock awards, situation which is not accounted for in the study, as far as I can tell [1]. Do unions also negotiate bonuses and stock awards? I'm unfamiliar to how they operate.

[1] https://www.bls.gov/ncs/ncbr0002.pdf

zaksoup7y ago· 1 in thread

As other commenters have said, the paper continues on to include an analysis that suggests the descrepancy is not due to some unique characteristic of the private sector but rather the concentration of union jobs in relatively low paying occupations in private industry. This and other BLS published reports suggest, therefor, that unions like the kickstarter union will ultimately put upward pressure on wages in professional occupations.

plainOldTextOP7y ago

I think the paper as it stands is deficient. As I've mentioned in my previous comment, in the tech sector particularly, compensation is a combination of salary, stocks, bonuses, etc.

Unless it adopts a more rigorous methodology, the paper paints a limited picture. [1]

For example, according to PayScale, Google pays on average $15,030 in annual employee bonuses (anywhere from $1,000 to $80,000), and for comparison, Facebook pays $12,860. These numbers will have a significant effect on hourly compensation.

Unfortunately, statistical analysis is tricky to get right, and plenty of papers contain errors and omissions, and I'm not necessarily saying that's the case here, but one ought to be aware. More on this topic, in case anyone is interested – Statistics Done Wrong [2]

[1] https://www.bls.gov/ncs/ncbr0002.pdf

[2] https://www.amazon.com/gp/product/1593276206

philipov7y ago

I don't know what those numbers mean. As a programmer, I am a salaried employee whose compensation doesn't fluctuate with the amount of time I spend working. Working fewer hours and working from home are direct improvements to my compensation which don't get quantified in my earnings.

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6 comments · 3 top-level

JamesBarney7y ago· 2 in thread

Here's the relevant paragraph.

zaksoup7y ago

plainOldTextOP7y ago

[1] https://www.bls.gov/ncs/ncbr0002.pdf

zaksoup7y ago· 1 in thread

plainOldTextOP7y ago

I think the paper as it stands is deficient. As I've mentioned in my previous comment, in the tech sector particularly, compensation is a combination of salary, stocks, bonuses, etc.

Unless it adopts a more rigorous methodology, the paper paints a limited picture. [1]

[1] https://www.bls.gov/ncs/ncbr0002.pdf

[2] https://www.amazon.com/gp/product/1593276206

philipov7y ago

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