Labor Trends to Watch in 2026: A Union and Trust Perspective
Labor unions and trust funds face another pivotal year asnew legislation, industry shifts, and workforce dynamics reshape the landscape. For union leaders, trust administrators, and member advocates, staying ahead of these changes is vital for protecting collective bargaining gains, managing benefit funds, and ensuring the well-being of members and their families. Here’s what unions and trusts should know for 2026—and how they can turn emerging challenges intoopportunities.
Navigating Legislative Change: Advocacy Leads the Way
Legislative developments—at both state and federal levels—can significantly impact benefit bargaining, compliance, and overall member security.
Prescription Drug Affordability: Bargaining Power at Stake
Legislative action on prescription drug costs continues, especially in the wake of the Inflation Reduction Act (IRA). Unions and trust funds should be prepared to leverage these changes during negotiations, pushing for increased transparency from pharmacy benefit managers (PBMs) and advocating for solutions that lower member out-of-pocket costs. It’s also important to monitor state-level PBM regulations and drug pricing rules, as these can open new pathways for savings and better plan design.
Mental Health Parity: Staying Compliant and Proactive
With stricter enforcement of the Mental Health Parity and Addiction Equity Act (MHPAEA), unions and trusts need to proactively review and adjust their health plans. Non-compliance doesn’t just carry financial risks—it blocks access to vital care. Keeping plans up-to-date and audit-ready is now a key tenet of responsible fund management and member advocacy.
"Right to Disconnect": A New Bargaining Table Issue
As more members work remotely, the movement toward "right to disconnect" laws is gaining momentum. For unions, these discussions offer new ground for bargaining over work-life balance and mental health programs. This priority aligns with the growing expectation among members for comprehensive wellness protections.
Industry Shifts: Keeping Trusts Strong Amid Change
Major industry trends are altering the landscape of healthcare and pharmacy benefits—areas where union-led trusts have direct responsibility.
AI, Automation, and Reskilling: Protecting Jobs and Benefits
The rapid advancement of artificial intelligence andautomation means unions must go beyond contract language to protect jobs. Include provisions in collective bargaining agreements for employer-funded upskilling and reskilling. This ensures members stay employable and benefit funds remain strong, even as job roles evolve.
Healthcare Consolidation: Vigilant Trust Management Required
Hospital, PBM, and insurance company mergers are shrinking competition, potentially raising costs for benefit funds. Unions and trusts should demand clear contract language to guard against abrupt formulary changes and ensure network sufficiency. Data transparency is vital—partnering within dependent experts can strengthen bargaining positions and optimize trust fund performance.
Specialty Medication Costs: Fund Sustainability at Risk
Specialty pharmacy costs continue to surge. For trusts, evenone high-cost therapy can strain reserves and jeopardize fund health. Implement active management strategies for specialty drugs, including utilization reviews and financial safeguards, to protect both plan sustainability and member access.
Evolving Workforce Challenges: Advancing Member Advocacy
Unions and trust funds must address shifting member needs, especially as workforces become more diverse and mental health remains a pressing concern.
Multigenerational Needs: Customizing Benefit Offerings
With multiple generations present in the workplace, cookie-cutter benefit plans often fall short. Trusts should work with unions to tailor offerings—like digital health tools for younger members and robust chronic care management for older workers—to keep plans relevant and valued.
Mental Health and Well-being: A Call to Action
Unions are at the forefront of the fight for mental health parity. This means advocating for accessible care, eliminating stigma, and promoting Employee Assistance Programs (EAPs). Trust fund administrators must ensure their plans offer strong mental health networks and tele-health options.
2026: A Year for Proactive Leadership
To succeed in 2026, unions and trusts should:
By leading with information and standing strong at the bargaining table, unions and trusts can secure better outcomes for all members in another year of industry change.