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A new analysis from IAM Strategic Resources shows that IAM Union members’ wage increases outpace both inflation and the wage growth of typical U.S. and Canadian workers, underscoring how collective bargaining agreements deliver significant economic gains for working people.
Drawing on data from 2001 through 2024, the reports highlight the long-term impact of collective bargaining agreements negotiated by IAM Locals across industries in both the U.S. and Canada.
“This data illustrates the value of IAM contracts,” said IAM Union International President Brian Bryant. “When IAM members negotiate collectively, we gain economic strength. We are proud to negotiate strong contracts that bring visible results like this to our members.”
Despite the data and its proof of how powerful collective bargaining agreements are, corporations have still kept wages as low as possible, especially in comparison to the record profits they are reporting.
The gap between corporate profits and employee wages is currently at a record high and CEO pay has also reached new levels while workers compensation lags behind.
The gap between employee compensation and productivity is also widening: productivity is at an all-time high while compensation is barely climbing.
READ: The Productivity–Pay Gap Economic Policy Institute
IAM contracts help level the playing field, but corporations continue to withhold fair pay and reasonable benefits for workers.
According to the analysis of U.S. wages, IAM members received an average annual wage increase of 3.9% between 2001 and 2024, compared to 3% for the median U.S. worker. During the same period, inflation averaged 2.5% annually, meaning IAM members’ wages, on average, grew faster than the cost of living.
The Canadian analysis shows the same trend. The average Canadian IAM members’ annual wage increase of 3.9% is higher than the median Canadian workers’ increase of 2.9% and the average Canadian inflation rate of 2.2%.
These gains are even more striking when added up for the whole 23-year period: U.S. IAM member wages increased by 148% from 2001 to 2024, significantly higher than the 101.7% increase that the median U.S. worker saw in the same period. Canadian IAM members experienced the same trend with almost identical numbers.
When adjusting for inflation, IAM members come out ahead, too. Real wages for U.S. IAM members grew by 36.2%, compared to 10.8% for the median U.S. worker, and Canadian IAM members’ real wages grew by 47.1%, while the median Canadian workers’ grew by 18.6% —meaning IAM members experienced real wage growth roughly three times faster than the typical worker in both the United States and Canada.
The figures do not include ratification bonuses, lump-sum payments, flat dollar-per-hour wage increases, or the value of negotiated benefit packages such as healthcare, retirement security, and other contractual protections that IAM members regularly win at the bargaining table.
