I’m a Financial Expert: 5 Reasons Unions Should Not Support Trump
As election season revs up, the headlines are dominated by stories of voters’ desires and concerns for future administrations. There are articles, podcasts and TV news reports galore about the various voter demographics who will be definitive in determining the outcome, including union members.
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With the labor movement as one of the most potent forces in American politics, it’s no wonder that candidates on both sides of the aisle would try to court endorsements and support. As Vice President Kamala Harris and her running mate, Minnesota Gov. Tim Walz, earn endorsements from major unions like the AFL-CIO and United Auto Workers, former President Donald Trump has also tried to shore up union support. Teamsters President Sean O’Brien was a major speaker at the 2024 Republican National Convention, representing the GOP’s attempt to solicit the union vote.
However, financial experts such as Josh Katz, CPA & founder of Universal Tax Professionals, and Zain Ali, finance expert and lawyer with Affinity Lawyers, say union members would be wise to close their ears to Trump’s pitch for their votes.
Also see why Harris could be bad for union workers.
Limitations on Collective Bargaining
For Katz, a potential Trump administration’s stance on labor rights and collective bargaining is a cause for concern. He’s particularly worried about proposals within Project 2025, the controversial initiative organized by the Heritage Foundation and associated with Trump’s campaign.
“Project 2025 includes proposals that could significantly weaken the power of unions, such as limiting the ability of public-sector unions to organize and negotiate on behalf of their members,” he said. “This could reduce workers’ bargaining power, leading to less favorable working conditions and benefits.”
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Increased Deregulation
Katz also shared worries about Trump’s penchant for economic policies that favor deregulation, which he says often translate to reduced worker protections.
“Deregulation can lead to a more employer-friendly environment where labor standards might be relaxed, making it harder for unions to advocate effectively for their members,” Katz said.
He added that an emphasis on deregulation could potentially undermine the safety standards and worker rights that unions have historically fought to protect.
Trade Policies
Potential changes in trade policies in a second Trump administration also could adversely impact unions, according to Katz.
“Trump’s ‘America First’ trade agenda, which includes imposing higher tariffs and reducing reliance on international trade, might lead to job losses in industries that depend on global supply chains,” Katz said.
He added that these changes could mean increased job insecurity, as well as pressure on wages, for union members who work in manufacturing and other trade-dependent sectors.
Economic Policies That Don’t Favor Workers
Ali has a very clear stance on why union workers should be leery of a second Trump term, starting with the tax policies from the first term that emphasized corporations and high-income earners, instead of income inequality or supporting public services.
“The tax cuts enacted during his first term exacerbated economic disparities, which could continue under a second term,” he said. “Such policies often lead to reduced funding for public services that unions and their members rely on.”
He added that Trump’s trade policies, including tariffs and trade wars, have impacted industries where unions are strong, like manufacturing, which could cause job losses while weakening bargaining power.
Threats to Healthcare and Social Safety Nets
One of the more notable moments from Trump’s first term was the attempt to dismantle the Affordable Care Act (ACA). Further attempts in a second Trump term could prove disastrous for union workers, Ali said.
“Many unions negotiate comprehensive healthcare benefits for their members, and any rollback of ACA protections or reduction in social services could undermine these benefits,” he added. “This leaves workers vulnerable and reduces the value of union-negotiated healthcare plans.”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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