4 ways to strengthen US industries with unions in 2025

Strikes, talent shortages and disruption have been dominating the news related to labour affairs in the United States. Moreover, the critical clean energy transition, the acceleration of advanced technologies like artificial intelligence (AI) and political changes are putting pressure on workers as they navigate the complex economic landscape.

In the US, relations between the private sector and labour unions are often adversarial, creating significant barriers to cooperation and mutual progress. Yet the need for collaborative solutions is pressing — and the stakes are high.

The 2023 entertainment industry strikes, for instance, resulted in $6 billion in losses as productions were halted, leaving both studios and workers struggling. Similarly, industrial action in the auto manufacturing industry caused an estimated $9 billion in economic disruptions the same year. The International Longshoremen's Association (ILA) port strikes in 2024 could have cut up to $7.5 billion per week from the US economy, underscoring the vulnerability of critical infrastructure to labour disputes.

As part of its Strategic Intelligence Outlook, the World Economic Forum hosted a dialogue that explored ways to accelerate cooperation among the private sector, policy makers and labour unions – and strengthen the American workforce and economy.

Speakers included Liz Shuler, President, AFL-CIO; Felix Ejeckam, Chief Executive Officer, Akash Systems; Kevin Delaney, Editor-in-Chief and Chief Executive Officer, Charter; Sharon Block, Executive Director, Center for Labor and a Just Economy, Harvard Law School; and Heather Landy, Senior Editor, Bloomberg News.

Here are four reflections:

Despite ongoing challenges, businesses and unions have significant opportunities to collaborate proactively in managing current and future transitions.

The Microsoft-AFL-CIO partnership exemplifies such efforts, serving as a model for addressing these shifts collaboratively, the speakers noted. The partnership focuses on equipping workers with critical information and insights around AI while actively involving them in the technology’s development and deployment. The partnership aims to build a more technologically skilled workforce, leveraging workers' insights to ensure effective and efficient implementation of AI solutions. On the policy front, Microsoft and the AFL-CIO will advocate for AI workforce legislation, expanded apprenticeships and funding for career and technical education.

"There are real opportunities for collaboration in the area of AI," Shuler noted during the dialogue. Delaney added that when workers are not involved at an early stage of deciding how the technology is used, the business success on implementing that technology is lower.

Similarly, in 2023, Akash Systems, a rapidly growing pioneering semiconductor manufacturer, announced a partnership with the Communication Workers of America (CWA) to support the construction and operation of a new semiconductor manufacturing facility in West Oakland, California. Through recruitment drives, apprenticeships with local colleges and extensive training initiatives, this collaboration aims to ensure skilled and adaptable workforce.

“There is a role that unions can do to help us in our business, especially when it comes to scaling,” Ejeckam added. “Labour unions can help us find the right workers like technicians or machine operators as well as training people quickly.”

Federal and state policies play a critical role in creating an environment conducive to collaboration and innovation, the speakers noted.

The US CHIPS Act and the Inflation Reduction Act, for instance, showcase how targeted legislation can drive innovation and equitable job creation, providing a blueprint for public-private collaboration. These policies are catalysing investments in critical industries like semiconductors and renewable energy, ensuring good job creation while meeting national strategic and industrial priorities.

"There is a role for regulation," Block stated. "And that doesn't mean it is anti-technology regulation, but workers should not have to bargain over protecting themselves."

State-level initiatives are also playing an increasingly vital role in addressing workplace challenges. For example, California’s proposed heat safety regulations aim to protect workers in high-risk sectors like construction and agriculture. These measures include limits on work hours during extreme heat, mandated cooling breaks and guaranteed access to proper hydration.

The speakers added that by serving as a testing ground for broader federal policies, state-led efforts enable workplace protections to evolve in step with real-world needs, fostering safer conditions for workers nationwide.

As industries undergo significant transformations, workforce resilience becomes paramount and collaboration between businesses and labour unions can boost industry attractiveness, ensure skilled and adaptable workforces and create economic opportunities.

Take Micron’s collaboration with the American Federation of Teachers (AFT) for example. By developing STEM-focused education initiatives, Micron and AFT are creating a direct pathway for students into the semiconductor industry by equipping students with the skills needed for high-tech careers through immersive, industry-focused curriculum and hands-on learning. In September 2024, the partnership announced that it would expand in new states including Michigan and Minnesota.

In the renewable energy sector, Ørsted’s partnership with the North American Building Trades Unions (NABTU) focuses on workforce development through apprenticeship programmes and safety training. As such, it is increasing the construction workforces’ capabilities to build complex offshore wind energy infrastructure, equipping them with green skills.

These initiatives help workers adapt to emerging industry changes, positioning them for the future while ensuring that businesses have access to a well-prepared labour force.

Proactive engagement and continuous dialogue among industry and labour leaders are critical components in navigating the ongoing and forthcoming market shifts. Such engagement, the speakers emphasised, is crucial for building trust, enabling the private sector and labour unions to identify shared goals, and effectively address challenges in the complex economic landscape faced by the US and other countries.

Building on existing initiatives such as business roundtables and discussions on organized labour held by the Aspen Institute and the Milken Institute as well as other ongoing efforts to bridge the communication and trust gap between the private sector and labour unions, the World Economic Forum will host a set of virtual and in-person dialogues in 2025. The dialogues will bring together business, labour and government leaders to identify and address industry and workforce needs across key areas and industries such as advanced manufacturing, AI and digital transformation, energy transition, trade and supply chains, and trustworthy technology.

The dialogues will reflect on industry and worker needs, facilitate discussion on shared priorities and explore emerging issues around labour and business cooperation in the US and other regions.