The Union Effect in California #1: Wages, Benefits, and Use of Public Safety Net Programs Research Brief by Ken Jacobs and Sarah Thomason shows that union contracts in California have a positive impact on workers' wages and benefits. 16.9% of the workforce in California is covered by a union contract, compared to 12.1% nationally. Union workers in California earn an average of 12.9% more than non-union workers with similar characteristics and working in similar industries. Overall, union contracts help to reduce income inequality by setting higher standards that benefit both union and non-union workers.