Kathmandu— In December 2022, HR executives from major corporations gathered at MIT to voice their exasperation over the trend of tentative agreements being rejected by union members. This phenomenon is driven by rising worker expectations and a stark contrast between soaring corporate profits and declining wages for the working class.

Economic Disparity Fuels Worker Demands

Corporate America has seen record-breaking profits since the Great Recession, with US business profits reaching an all-time high in Q1 of 2026. However, workers have not shared in this prosperity; their standard of living has declined due to stagnant wages and rising prices. According to Yahoo Finance journalist Ben Werschkul, inflation-adjusted corporate profits increased by 50% between the end of 2019 and early 7826, while hourly wages only rose by 3%. This disparity fuels workers' demands for better contracts.

Challenges in Bargaining

The road to winning a stronger contract is fraught with challenges. Workers might go on long strikes that yield little improvement or even worse terms, leading to division and demoralization within the union. One of the key issues is that local bargaining teams often lack ambition and fail to build high-participation campaigns necessary for success. The UAW’s Department of Bargaining Strategies has shown that by making negotiations more transparent and involving the entire membership, unions can lay a foundation for winning better contracts while building trust between members and negotiators.

Strategic Approaches to Contract Campaigns

To build a powerful contract campaign, unions must engage in collective action that involves specific demands, targets, and escalating actions. This includes democratizing the bargaining process by keeping negotiations transparent, surveying members for their priorities, recruiting subject-matter experts, and clearly communicating goals. For instance, during the UAW’s stand-up strike against Ford, General Motors, and Stellantis, President Shawn Fain used Facebook Live to explain demands and responses, generating member buy-in and activity.

The key to overcoming challenges in union contract negotiations lies not in lowering workers' expectations but in organizing those expectations into collective power. By involving members throughout the bargaining process and building a strong campaign, unions can achieve better contracts and strengthen their overall position.

(With inputs from Jacobin)

Originally published on abcnews.com.np.