Subject: First Contracts, False Union Optimism, Gen Z "Demands": LRI INK

August 7, 2025

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Not So Fast: First Contracts, False Union Optimism, And Employers Caught In The Spin Cycle Suspicion

by Kimberly Ricci

A first union contract generally takes at least a year to broker following an election. To illustrate how poorly the Starbucks Workers United (SWU) saga is going, more than four years have passed without a contract, and a year of renewed negotiations for a contract framework still hasn’t led to a touchdown. However, a few other union contract “wins” recently made headlines, as we will soon discuss.


Considerations for employers: First, it’s important to remember that Big Labor can talk a good game. Union leaders delight in inventing falsehoods about “corporate greed” during contract negotiations, and that messaging can cause frustrated workers to wonder the following: 

  • Is my employer purposefully delaying a contract?

  • Will the contract include what the union promised?

  • What on earth is taking so long?

Unfortunately, once a workplace has been infiltrated by a union, that third party will influence much of what members hear on the topic. So, workers might not realize that although their employer is bargaining in good faith, the union is unfairly shaping the narrative. The reality is that first contracts are complex legal agreements that set the tone for a workplace’s future and must be evaluated by legal counsel every step of the way. Also, “give and take” will occur on both sides with the clock running.


When a tentative contract finally emerges, the document might barely resemble what a union promised. These results can disappoint workers and lower workplace morale, so it will be worth watching whether the news below will lead to buyer’s remorse:


The not-so-great outdoors: In early 2022, REI retail workers voted for the company's first unionized location under the UFCW subsidiary RWDSU, with workers at ten more stores later joining the fold. This month – and three years after negotiations began – the union is claiming to have achieved “a tremendous step forward,” but notably, this is not a contract.


Instead, the parties arrived at a “national bargaining structure” for hammering out individual union contracts for each store. Sure, this “framework” is similar to what SWU has accomplished, but this is essentially an agreement to further agree in the future. In other words, this is much ado about not that much, yet.


An overhyped gambit: Raven Software, developer of the “Call Of Duty” game, saw 19 quality assurance workers join CWA in 2022. Three long years of bargaining set in and have now yielded 10% wage increases over two years. That isn’t much higher than a standard 3% annual raise customarily practiced by employers, especially since union dues will swallow a considerable part of the difference. 


More first contracts: 

  • Baltimore’s Walters Art Museum workers ratified their first AFSCME contract after two years of negotiations, to the tune of underwhelming 13% wage increases over three years. 

  • The Hill journalists waited three years for their first contract between TNG-CWA and Nexstar Media Group, Inc. The union claims to have won protections against job losses, even though the reality is that unions cannot truly protect workers from layoffs.

Conclusion: The above lackluster results aren’t surprising for those who keep an eye on labor news, but those workers will likely feel sticker shock. Unions will also lie at every opportunity about their own failures during negotiations, so employers will want to maintain a non-adversarial tone and remain committed to open dialogue to lessen the effects of the spin cycle.


Webinar: Labor Relations Update: The News You Need To Know

by Michael VanDervort

Addressing Labor Complexities in Healthcare


Healthcare organizations are facing unprecedented demands, from staffing
challenges and burnout to housing costs, immigration, and rural closures. The
pressures are real and growing.


Yet, many health systems are slow to respond, fearing PR blowback or
underestimating the risk. In turn, organizing is on the rise, and unions are turning
up the heat.


On August 14, join us for an interactive session in empowER to unpack what’s
driving current labor activity in healthcare and practical ways to get ahead of the
curve. We'll explore:

  • How labor unions are shifting tactics and gaining ground

  • The impact of staffing ratios - and what it means

  • The rise of organizing among physicians, residents, and advanced
    practice providers

  • How affordability issues and rural closures are fueling discontent

*Sign up link: https://empower-er.org/networks/events/187841


To attend this session, you have to be a member of the empowER – the online
community for ER, HR, and LR professionals. Not a member? Join today for free: https://empower-er.org/


The Left of Boom Show: Transforming Employee Relations With Deb Muller, CEO, HR Acuity

by Michael VanDervort


In this episode of The Left of Boom Show, host Phil Wilson sits down with Deb Muller, founder and CEO of HR Acuity, to explore how technology, data, and leadership are transforming the way organizations manage employee relations and workplace investigations.


With over 25 years of experience in HR and ER, Deb shares her journey from corporate HR leader to tech entrepreneur, and why she built the only platform purpose-built for employee relations. From the importance of consistency and trust in investigations to the role of AI and predictive analytics, this conversation is packed with actionable insights for anyone involved in employee relations.


We also dive into the empowER Community, benchmarking metrics, leadership lessons, and how recognition in the field is helping elevate the ER function inside organizations.


Key Takeaways:

  • How consistent investigation practices build trust

  • Using technology to elevate employee relations

  • The power of predictive indicators in preventing workplace issues

  • Why AI should assist—not replace—human judgment

  • Leveraging benchmarking to justify and grow ER functions

  • The value of community and shared best practices through empowER

Chapters:

00:00 – Deb Muller’s Journey in HR and Tech

02:41 – The Evolution of HR Acuity

05:18 – The Importance of Consistent Investigation Processes

08:03 – Understanding Employee Relations Beyond Investigations

10:32 – Predictive Indicators in Employee Relations

13:13 – The Role of Leadership in Employee Relations

15:59 – Best Practices in Investigations

18:46 – Building Trust Through Investigations

24:48 – Creating a Supportive Work Environment

27:09 – The Birth of the empowER Community

30:09 – Harnessing AI in Employee Relations

37:45 – Benchmarking and KPIs in Employee Relations

42:02 – Celebrating Achievements and Future Aspirations


Watch now and subscribe to catch more candid conversations at the intersection of leadership, labor strategy, and innovation.


Learn more: HR Acuity  empowER Community 


Gen Z Healthcare Workers And Their Unique Wants From Employers

by Kimberly Ricci

It’s safe to say that Gen Z workers have seen some stuff. They've witnessed multiple economic downswings and entered the workforce during an unfavorable economic climate. They’ve watched relatives work the same job for decades, yet these young adults know that is likely not the life that’s waiting for them. They also realize that new tech is constantly emerging, and they have concerns that extend into the healthcare industry.


A recent Becker’s Hospital Review story touches upon the “demands” being made by Gen Z healthcare workers. Spoiler alert: These workers are making savvy stipulations. What they want sounds reasonable, and employers would be wise to listen to them, especially since this generation tends to be “union curious,” making them targets for third-party infiltration. How can healthcare employers attract them and keep unions away?


These workers want zero BS, and we’re offering suggestions on how to communicate that messaging to them:


Technology and experimentation: These healthcare workers are overall anxious about AI, but do realize that there is no other option but to wrap their minds around the newest tech. As a result, they desire transparent protocols on how AI assistants and other cutting-edge tech will be used in clinical settings. To gain workers’ trust, employers should emphasize training, upskilling, and cross-training, which will help Gen-Zers visualize the opportunities for growth and advancement they want from an employer.


Wellness culture: Sadly, those who care for and save the lives of others do not always have the resources or headspace to prioritize themselves. There’s a reason that burnout is rampant among healthcare professionals, including matters involving mental health, which should be at the forefront for those who regularly witness stressful situations, including trauma and death. Whether through in-person or app-based offerings, workers with access to therapy, yoga, and meditation resources will benefit.


Work-life balance: Younger generations are particularly sensitive to this issue after their Gen X parents attempted to “have it all” while balancing demanding careers and raising families. The reality of this quest has led many Gen-Zers to lean into working smarter, not harder, while viewing employment and personal fulfillment separately. So, they want to take their PTO without feeling like less of an asset while doing so. Gen Z also digs flexible scheduling, such as longer shifts with fewer weekly days required. This is already commonplace for some nursing positions, but for other roles where flex or WFH days are possible, you’ve got their attention.


Room for growth: These workers don’t want to hear lip service about promotion and advancement without follow-through. They want employers to establish mentorship programs with clearly defined paths for career development. Managers should also set challenging yet attainable goals and ensure regular progress meetings with workers’ direct supervisors.


Clear company purpose and values: Gen-Z-er workers are all about employers who accurately reflect their own mission statements. Internal communications should be transparent and forthright, and public-facing statements, such as those from social media, should ideally include authentic and accurate storytelling.


In healthcare, a mass exodus of retiring workers recently made way for a new crop of lifesavers, so Gen Z’s worth is immeasurable. Employers who can attract these workers will hold the keys to the future.


Stories You May Have Missed:


AI-Powered Job Tracking May Shift Overtime Eligibility


What happened:
The Department of Labor’s new overtime rule, set to take effect July 1, 2025, raises the minimum salary threshold for exempt employees. But a new twist: Artificial intelligence may also increase the number of white-collar workers eligible for overtime, not because of pay, but because of duties.


As Bloomberg Law reports, AI is making it easier for regulators and attorneys to challenge FLSA exemptions by revealing that many employees’ day-to-day tasks don’t meet the executive, administrative, or professional exemption criteria.


Why it matters:
With AI systems increasingly used to monitor workflows, analyze productivity, and automate tasks, the line between exempt and nonexempt labor is getting fuzzier. Employers who rely solely on job titles or outdated job descriptions may find themselves vulnerable to wage and hour claims.


Employers should reassess how AI is documenting employee duties—and whether that data could undermine current exemption classifications.

🔗 Full story via Bloomberg Law

UAW President Faces Internal Trial Push Amid Misconduct Allegations


What happened:
On August 6, 2025, six UAW union locals—four of them based in Michigan—filed a formal request for an internal trial against UAW President Shawn Fain. The locals cite concerns tied to an ongoing investigation by federal court-appointed monitor Neil Barofsky into possible retaliation and financial misconduct. Specifically, the monitor is examining whether Fain removed a union treasurer after she refused to authorize potentially improper spending.


Why it matters:
This internal trial request raises the stakes for Fain, who became the first UAW president elected directly by members and has led the union through high-profile contract fights and political campaigns. If the allegations are substantiated, potential outcomes could include discipline or removal from office. The UAW remains under federal oversight stemming from past corruption scandals, and this case could renew concerns about transparency and internal governance.


UAW members and employers alike should watch closely, as the outcome could reshape the union’s leadership heading into 2026.

🔗 Full story via Michigan Public


AFL-CIO Rallies Atlanta Workers Ahead of Labor Day


What happened:
On August 31, 2025, AFL-CIO President Liz Shuler led a weekend rally in Atlanta ahead 0f Labor Day, calling on workers across industries—particularly in the South—to unionize. The event was part of a broader campaign to expand union influence in historically under-organized states like Georgia, where union membership remains below the national average.


Shuler's message focused on economic fairness, workplace rights, and the power of collective action, emphasizing that unions are gaining traction in the South’s logistics, education, and healthcare sectors.


Why it matters:
The South remains a key battleground for union growth, and the AFL-CIO is signaling long-term investment in organizing campaigns across Georgia and beyond. As more employers expand operations in the region—particularly in e-commerce, auto manufacturing, and education—organized labor sees new opportunities to gain footholds.


Employers in the region should anticipate increased organizing activity and prepare with proactive labor relations strategies.

🔗 Full story via WSB Radio


About Labor Relations INK

Labor Relations INK is published weekly and is edited by LRI Consulting Services, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


If you use content from this newsletter, please attribute it to LRI Consulting Services, Inc. and include our website: http://www.LRIonline.com 


Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


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About LRI Consulting Services, Inc.

LRI Consulting Services, Inc. exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 40 years, LRI Consulting Services, Inc. has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

 

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