Unions, fair wages & nonprofits

Image description: Demonstrators walking in the street. One person holds up a sign that says “Enough!” Photo by Liam Edwards on Unsplash

Unionized workers at SIFF Cinema walked out this past weekend, as described here. I feel for all parties. The union is seeking a timely contract and job protections for workers. The SIFF management is undoubtedly feeling stuck and unable to imagine how they can raise the revenue to improve wages and working conditions. The tension is undoubtedly especially high this week as SIFF began screening The Odyssey in 70mm, likely a cash cow that is needed to balance their budget.

I’ve worked in and with nonprofits for 35 years now, but I have not personally belonged to a union nor been in management at a unionized nonprofit. Unions are more common in larger organizations and in the arts. As a progressive person, I believe in the power and importance of worker organizing. Perhaps if unions were more widespread in the US, there would be less poverty and the resulting need for nonprofit social services.

I think many of us have wondered if more widespread unionization in the nonprofit sector is appropriate. This is a tricky topic. Regrettably, I have witnessed little honest conversation about the pros and cons of greater unionization. A lot of my information is anecdotal, but here are a few thoughts. I would love to hear from others sharing your experience and observations. I’m also very open to criticism and learning—I recognize that my lack of experience and primary identification with management may lead me to err in some of my assumptions.

1. Many nonprofit workers today feel undervalued and exploited. Meaningful work is great, but employees must also be able to pay their bills. Nonprofits should not contribute to poverty or precarity by paying poverty wages or forgoing health benefits. There is ample data confirming that nonprofit workers are paid less than their counterparts in the private and for-profit sectors for comparable work, such as this UW study. The challenge here is shifting from the model that has been dominant for over a hundred years—that of balancing our budget on the backs of our workers, who are expected to work for less in exchange for the satisfaction of mission work.

2. Nonprofit leaders are products of this system as well. Most make living wages now, but they may feel that they have “paid their dues” to get where they are and may not be thinking about the privilege that allowed them to work their way up through unpaid internships, volunteering, long hours, and substandard salaries for many years. In addition, Boomer and Gen X leaders enjoyed relative ease in earning enough to afford college, purchase a house, or other economic milestones, compared with younger generations. For this and other reasons, management may not be as sympathetic as desired toward newer nonprofit workers.

3. While attitude may be a challenge with some leaders, the actual process of unionization is daunting as well, and most nonprofit managers and boards have no experience or resources to help them navigate it gracefully. During the formation period, management needs to be very careful not to disparage the union organizing effort. Once staff vote to unionize, it can take 1-2 years to get to an initial labor contract. It is typically necessary to engage legal counsel to assist management even if the process is not adversarial. The actions required are a substantial additional learning curve and workload for the executive, usually on top of an already unmanageable list of responsibilities. Finally, the financial pressure is intense—where will the revenue come from to increase pay and benefits, as well as the transition support?

We can do hard things

The truth is, the nonprofit sector can and does adapt to changes, including difficult challenges related to pay equity. Beginning in 2020, the State of Washington phased in a higher threshold for exempt (salaried) employment. Prior to the change, nonprofits in Washington had to abide by the federal exempt employment threshold, currently set at the retrograde and miserable level of $35,568 per year. In contrast, Washington state employees must be paid hourly and eligible for overtime below an annual salary threshold of $80,168 in 2026, rising each year with inflation. There was a great amount of fear when this change was proposed, and it has certainly caused stress for smaller and poorer nonprofits. Yet somehow, most of us have adjusted to the change and continued to operate. Countless workers are better off and the system is fairer, making it a big win in my view.

In 2001, Washington voters passed Initiative 775, which established the Home Care Quality Authority and gave home care workers the right to join a union and to bargain collectively with the state. Unionization for home care workers in Washington has been a major success, establishing union representation for thousands of workers through SEIU 775 and raising wages significantly. Other industries might benefit from similar change.

Overall, I will continue to beat the drum that we can’t let fear and lack of imagination drive decisions about compensation and budget, blocking needed change. We must continue to push for the changes we believe are ethical and will create stronger, more sustainable workplaces. This includes adjusting to unionization when it comes. I would love to see nonprofits working together to assist unionizing organizations as they transition and negotiate their first contract. General education about unions should be a part of nonprofit management education. Philanthropy should also contribute to help nonprofits with the legal and operational costs associated with transitioning. Together, we can reinvent nonprofit employment to be more desirable and fairly compensated through unionization or other means.

Please share your thoughts and stories. What do you wish nonprofit folks knew about unions? What successes have you seen or experienced?