UNION WORKERS HAVE BETTER BENEFITS

Union workers are more likely than their nonunion counterparts to receive health care and pension benefits, according to the U.S. Department of Labor. In 1997, 87 percent of union workers in medium and large establishments had medical care benefits, compared with only 74 percent of nonunion workers. Union workers are also more likely to have retirement and short-term disability benefits.

 

UNION WORKERS ARE MORE LIKELY TO HAVE
HEALTH AND PENSION BENEFITS

As the chart illustrates, 90% of union workers have pension plans versus 76 percent of nonunion workers. Seventy-nine percent of union workers have defined-benefit retirement coverage, compared with 42 percent of nonunion workers. Defined-benefit plans are federally insured and provide a guaranteed monthly pension amount. They are better for workers than defined-contribution plans, in which the benefit amount depends on how well the underlying investments perform.

Note: Defined benefit pensions are a subset of all pensions. Disability refers to short-term disability benefits.

Source: Bureau of Labor Statistics, Employee Benefits in Medium and Large Private Establishments, 1997, Bulletin 2517, September 1999.

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