The Union Difference  



Union Workers Have Better Health Care and Pensions

Union workers are more likely than their nonunion counterparts to receive health care and pension benefits, according to the Bureau of Labor Statistics. In 1999, 73 percent of union workers in private industry participated in medical care benefits, compared with only 51 percent of nonunion workers. Union workers also are more likely to have retirement and short-term disability benefits.

As the chart below illustrates, 79 percent of union workers are covered by pension plans versus 44 percent of nonunion workers. Seventy percent of union workers have defined-benefit retirement coverage, compared with 16 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.)

UNION WORKERS ARE MORE LIKELY TO HAVE
HEALTH AND PENSION BENEFITS, 1999

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

Source: Bureau of Labor Statistics, Employee Benefits inPrivate Industry, 1999. USDL: 01-473. Dec. 19, 2001. Prepared by the AFL-CIO.