Recently, I was sitting on a bench along the Tennessee River with two friends, and we started talking about our pay stubs. One works at a unionized factory, while the other is at a non-union logistics company.

They pulled up their pay stubs side by side on their phones, and the differences were more noticeable than I expected. So, when I got home, I looked up some official statistics.

First, let's look at the national numbers. According to the Bureau of Labor Statistics (BLS), the median weekly wage for union members was $1,404 this year, based on full-time workers.

For non-union workers, it was $1,174. That's a $230 difference per week, meaning non-union wages are about 84% of what union members earn.

If you do a simple calculation for a year with 52 weeks, that amounts to a difference of $11,960. Wow, I was honestly a bit surprised by that.

However, it's misleading to think, "Joining a union will increase my salary by $10,000." The BLS clearly states that this comparison does not control for factors like occupation, industry, age, company size, or regional differences.

This means that areas with a lot of unions might be in higher-paying industries or larger companies. So, it's best to view these numbers as a starting point.

Tennessee has a different situation. In 2025, the percentage of union members among Tennessee workers was 4.8%, which is less than half the national average of 10.0%.

Even if you include those who are not union members but are covered by collective agreements, the number rises to 5.7%. For reference, the 2025 statistics are an 11-month average due to a federal government shutdown that caused the October survey to be missed, so BLS advises to view state-level numbers as rough trends.

One reason Tennessee is so low is due to right-to-work laws. Tennessee has been enforcing this law since 1947, and in 2022, it was added to the state constitution through a referendum.

The amendment passed with nearly 70% approval across all 95 counties. The key point is that union membership or payment of dues cannot be made a condition of employment.

Now, we can't ignore the Volkswagen plant in our area. Employees there voted against unionization twice in 2014 and 2019, but chose to join the UAW in 2024.

And on February 19 of this year, the first collective agreement was ratified with 96% approval. The contract lasts until February 2030.

According to the details, wages will increase by a total of 20% over four years, with a 5% increase in the first year, followed by 3% each of the next three years, and a 6% increase in the final year. It was reported that when calculated with compounding, this amounts to 21.6%.

By the end of the contract, the highest hourly wage for production workers will be $39.41, and for skilled workers, it will be $49.86. There's also a $4,000 ratification bonus and an annual bonus of $2,550, and health insurance premiums are set to decrease by at least 20% and remain frozen during the contract period.

Now, hearing all this, it might seem like unions are definitely the better option. However, looking back at my friend's pay stub, I noticed an additional line for union dues.

The UAW dues have been 2.5 hours of pay per month since 2014. For example, if the hourly wage is $30, that would mean $75 a month, or $900 a year.

Since it's a right-to-work state, there is an option not to pay dues. However, the conditions can vary by company and contract, so it's best to check directly with the HR team or union office when starting a job.

What you should pay attention to on the pay stub is not just the base salary. You also need to consider health insurance deductions, overtime pay calculation methods, bonus payment timing, and the company matching rate for retirement plans to make a true comparison.

In reality, my friend without a union had a slightly lower hourly wage, but the company's 401(k) matching was quite good. Conversely, my friend with the union had significantly lower health insurance deductions.

There are also aspects that aren't reflected in numbers. With a collective agreement, there are grievance procedures for terminations or disciplinary actions, and contracts like Volkswagen's include clauses that guarantee 80% of the base salary during temporary layoffs.

On the other hand, many people point out that non-union companies have the advantage of being able to raise salaries based on individual performance without negotiation processes. For younger workers who frequently change jobs, this can sometimes feel more realistic.

There are quite a few Korean individuals preparing for jobs in manufacturing or logistics. When you receive a job offer, don't just look at the hourly wage; be sure to request a sample pay stub.

If it's a unionized workplace, you can also ask if you can see the full collective agreement. The wage table is organized by year, so you can calculate your hourly wage in advance for a few years down the line.

For non-union companies, I recommend asking during the interview about the average raise percentage over the past few years. If they hesitate to answer, that's also a piece of information.

Personally, I feel that rather than whether to join a union or not, it's more important to consider, "Can I predict what my pay stub will look like in four years?" If I were to think about long-term employment, I would choose the side with a collective agreement; if I plan to build my career and move on, I would opt for the side with clear performance rewards.

There's no right answer either way. However, when you lay the numbers side by side, it becomes much easier to make a judgment than relying on vague impressions.

Next time we walk, we plan to properly compare 401(k) matching, and I'll share that information once it's organized!