On August 27, the United Auto Workers (UAW), who represents 1,200 dining, grounds, janitorial, and animal care workers, reached a settlement of their strike against Cornell University. Union members will ratify the proposed settlement by a vote held on Sunday September 1 and Monday, Sept 2, with the goal of returning to work on Tuesday, September 3.
On Friday, August 30, the UAW publicly posted both a summary of the settlement as well as scanned copies of their documents exchanged with Cornell’s negotiators. The UAW attempted to put a spin of success on the outcome of the negotiations:
“NO CONCESSIONS”
“For the first time in a long time, this proposed Agreement contains not a single concession of any kind – only improvements. The Bargaining Committee refused to even consider the university’s concessionary proposals.”
As a factual matter, the Union conceded on a number of their issues.
Key Terms
For example, the S02 workers will receive an immediate 8.8 % increase, followed by a 4% increase on July 1 2025, a 12% increase on July 1, 2026 and a 3.3% increase on July 1, 2027. In addition, for 2026 and 2027, there is a Cost of Living Adjustment (COLA) clause that will protect the wages against any inflation beyond 6% per year. The UAW had demanded a 25% increase.
During the dispute, the UAW filed a number of complaints with the National Labor Relations Board claiming that Cornell engaged in unfair labor practices, and the UAW will drop these as a part of the settlement.
Cornell promised to add two floating holidays by July 1, 2025. Cornell promised one hour of annual paid training about tick control for appropriate grounds crews. Cornell also offered allowances for needed uniforms and safety equipment such as no-slip shoes or steel toed boots.
Cornell offers free parking in the A Lot for all employees. However, the UAW demanded free parking in lots very close to their work stations. (For example, dining workers at the Straight wanted free parking at the Straight.) The agreement does not offer parking reimbursement or parking benefits.
Union Dues and Other Costs
The UAW’s glossy brochure that supports ratification also explains the formula for UAW dues. Each member must pay dues each month based upon 2.5 hours of pay (which increases whenever wages go up.) So a waitperson making $13.96 per hour under the new wage rates would pay $35 per month ($419 annually) in mandatory dues. Former tiered employees being paid lump sums would pay 1.4% in dues on any such payments.
Further, UAW members are expected to donate to the UAW’s political action committee and to subsidize the anti-semitic rhetoric of UAW leaders.
Long Term Impacts
The contract expires in 2028. In the meantime, Cornell is free to allocate work to its federal work study students. That program allows Cornell to create employment for students as a part of their financial aid packages with the federal government paying 75% and Cornell paying only 25% of wages. So, for a job requiring lower levels of skill and experience, it is economically beneficial to use work study students than to hire additional employees that would be subject to the UAW contract.
In Tompkins County, Cornell is the most attractive employer because of its generous fringe benefits, particularly its health plan. Those benefits are available to all employees, without regard to UAW membership. People argue that workers have accepted lower wage levels at Cornell in comparison to other employers as a result. The UAW relied heavily on the MIT Living Wage Study, but that study does not reflect the Cornell fringe benefits package and has other flaws. Instead, Cornell did its own study to show that its wages were competitive in Tompkins County.
If in 2028, the UAW settlement results in wages that are out-of-line with the area, the next collective bargaining agreement may be a far more painful process. Cornell’s ultimate threat would be to outsource its dining and grounds care, with its contractors hiring entirely new staff that would no longer receive full Cornell fringe benefits.
Locally, the labor market continues to evolve. Ithaca has lost the last of its manufacturing jobs, which are historically associated with unionization. Although the Greenstar Food Co-op workers recently voted to unionize, Starbucks elected to close its Ithaca stores rather than unionize. Finally, the Cornell Graduate Students United are in the process of negotiating their first collective bargaining agreement with Cornell.
In general, Cornell conducted itself with dignity and took care to show appreciation for the work performed by all union members. Cornell is obligated to allow workers to return from the strike without retaliation. Cornell students, many of whom will have to supervise or work alongside unionized workers after graduation, learned valuable lessons from how Cornell handled itself during the strike.
