One CEO Explains Why She Values Her Union Workforce

Why It Matters

Union contracts give Otis a reliable labor framework and safety baseline, crucial for a capital‑intensive, safety‑critical industry facing rapid AI adoption.

Key Takeaways

• 64% of Otis U.S. workforce covered by collective bargaining agreements
• Union contracts enforce consistent safety rules across U.S. and Canada
• 45,000 frontline workers install, repair, and maintain elevators globally
• CEO pledges AI will augment, not replace, field technicians

Pulse Analysis

The elevator and escalator market relies on a stable, skilled labor pool, and Otis’s high unionization rate illustrates how collective bargaining can deliver that stability. In an era where supply‑chain volatility and wage pressures threaten project timelines, having 64% of U.S. employees under union contracts gives Otis predictable labor costs and a clear framework for negotiations. This predictability translates into smoother scheduling for new installations and retrofits, allowing the company to meet tight construction deadlines and maintain its competitive edge.

Safety is another pillar reinforced by union agreements. The International Union of Elevator Constructors, a multi‑employer union, embeds detailed equipment‑handling protocols and site‑specific safety measures into its contracts. By applying a uniform set of work rules across the United States and Canada, Otis reduces the risk of accidents, protects its technicians, and safeguards the riding public. Consistent safety standards also lower insurance premiums and mitigate costly downtime, which is especially valuable for a business that operates critical infrastructure in high‑rise environments.

Looking ahead, Otis is positioning its workforce at the intersection of human expertise and artificial intelligence. Predictive maintenance software has already been used to optimize service routes and anticipate component failures. Marks stresses that AI is an enabler, not a replacement, for the 45,000 frontline employees who perform installations and repairs. By framing the future as "human‑led and AI‑enabled," Otis aims to retain skilled technicians while boosting productivity, a model that could set a benchmark for other capital‑intensive industries navigating digital transformation.