Companies with unionized workforces and those under employee ownership structures are playing a significant role in broadening wealth creation, particularly among blue-collar Americans.
A recent analysis conducted by the Center for American Progress reveals that the typical household belonging to a union member possesses 1.7 times more wealth compared to nonunion households. Moreover, unionized workers lacking high school diplomas boast wealth levels three times greater than their nonunion counterparts.
Concurrently, leveraged employee share ownership plans, where employees acquire ownership stakes in the companies they work for over time, are gaining popularity and generating new millionaires, as reported by Axios.
The advantages of being in a union, such as higher wages, enhanced job security, and superior retirement benefits, contribute to higher rates of homeownership among union members, reaching 71% compared to 65% among nonunion workers. Furthermore, access to healthcare coverage extending into retirement assists union workers in avoiding or minimizing medical debt.
As of 2021, assets held in employee share ownership plans have exceeded $2 trillion, according to the latest available data. Notably, among the beneficiaries of such plans are longstanding employees of Publix supermarkets, some of whom have seen their investments surpass $1 million, Axios notes.
The attorneys at Outside Legal Counsel LLP have extensive experience with counseling on outside the box equity and incentive compensation structures. Reach out to us for a consultation.
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