The DEI Backlash Is Corporate Smoke and Mirrors—Union Contracts Are What Actually Pays the Bills

By Feminist Focus · February 25, 2026

While the EEOC signals DEI scrutiny, union workers are winning real money. Here's why corporate equity programs were theater—and what actually works.

The TL;DR

While the EEOC and DOJ are signaling they'll scrutinize "DEI initiatives," the real story isn't about diversity programs. It's that companies are using the DEI backlash as political cover to gut equity efforts while union workers are negotiating actual wage increases. Volkswagen Chattanooga just won 20% raises. Your HR department's "inclusive hiring" workshop? Not worth the Zoom link. Let's talk about what's actually moving the needle.

Okay, Let's Unpack This: The DEI Smokescreen

Real talk: The EEOC and DOJ's new guidance on "unlawful DEI" is getting a lot of press. Companies are scrambling. HR departments are panicking. And everyone's acting like this is the end of workplace equity.

It's not. It's a distraction.

Here's what's actually happening: Corporate America is using federal DEI scrutiny as political cover to dismantle equity programs they never actually funded in the first place. A diversity training workshop? That costs money. A mentorship program for women of color? That requires real commitment. But a press release saying "we're pausing DEI initiatives due to legal concerns"? That's free, and it plays great with the right-wing base.

The math isn't mathing. And here's why it matters:

What DEI Actually Was (and Wasn't)

Let's be honest: Most corporate DEI programs were never radical. They were HR theater. A Black History Month email from your CEO. A "diverse" stock photo on the website. A workshop on "unconscious bias" that changed nothing about who got promoted or how much they got paid.

But here's the thing—even that performative stuff is better than nothing. It created a paper trail. It created accountability. It meant someone, somewhere, was supposed to be thinking about whether the promotion list looked like the company or just like the executive team.

Now? Companies get to shred that accountability and call it "legal compliance."

The Real Weapon: Union Contracts

While corporations are having a DEI panic attack, let's look at what's actually winning money for workers:

Volkswagen Chattanooga (UAW): 3,200 workers just ratified a contract with 20% wage increases across the board. They're getting $4,000 upon ratification, plus $2,550 annual bonuses over the four-year term. Top hourly wages will hit $39+. This happened in the South, in a traditionally anti-union region. (Yes, really.)
Providence Saint John's Health Center (CNA/NNU): Nurses won 100% 401(k) match contributions, staffing improvements, and education investments. That's not a workshop—that's actual money and actual working conditions.
Geisinger Hospital (SEIU): Environmental services workers, nursing assistants, dietary aides—the people who keep hospitals running—won wage increases ranging from 9.25% to 20%. Some of those workers make $15-18/hour. A 20% raise is life-changing.
Environmental Defense Fund (NewsGuild-CWA): Workers voted to form the largest environmental nonprofit union in the US. They didn't ask for a diversity initiative. They asked for a seat at the table.

That's equity. Not a workshop. Not a checkbox. Power.

Here's What the EEOC Guidance Actually Says (And Doesn't)

The federal guidance warns that companies can't use "quotas" or "balancing efforts" in hiring, promotion, or compensation. It specifically calls out:

Disparate treatment based on race, sex, or other protected characteristics
Targeting specific groups for mentorship or sponsorship programs
Using diversity metrics in hiring or promotion decisions

Sounds scary, right? But here's what it doesn't say:

Companies can't pay women and people of color equally (that's already illegal under the Equal Pay Act)
Companies can't track pay equity data (transparency is your weapon)
Companies can't negotiate union contracts that include anti-discrimination language (union contracts supersede at-will employment)
Companies can't be held accountable for systemic discrimination (that's what the EEOC was supposed to do, but enforcement is another story)

The real issue? The EEOC isn't going to enforce anything. The current administration doesn't want to. So companies get to use the guidance as a get-out-of-jail-free card.

The Wage Gap Didn't Close Because of DEI. It's Closing (Slowly) Because of Unions.

Let's talk about the actual data. The World Bank just warned that there's a "shockingly large" gap between gender equality laws and their enforcement. Translation: We have laws on the books. Nobody's enforcing them.

So what is closing the wage gap? Union contracts.

When workers organize collectively, they negotiate:

Transparent pay scales (no more "don't talk about salary" nonsense)
Cost-of-living adjustments (your raise keeps up with inflation, not corporate whims)
Anti-discrimination clauses (backed by grievance procedures with teeth)
Seniority-based promotions (not based on who "fits the culture")

That's not DEI. That's structural change.

What This Means for You

If you work in a non-union environment and your company just announced they're "pausing DEI initiatives," here's the reality:

Your equity protections just got weaker. Not because the law changed, but because the accountability mechanism is gone. Your company can now claim they're "legally required" to stop tracking pay equity, stop mentoring women and people of color, stop anything that looks like it's "favoring" anyone.

And the kicker? They'll still discriminate. They'll just do it quietly, and they'll have a federal guidance memo to back them up.

Now, What Are We Doing About It?

Three moves:

Demand pay transparency. If your company is "pausing DEI," ask them to publish their pay data by job title, department, and demographics. (If they won't, that's a red flag.) Use the template I'm including below to make the ask formal.
Talk to your coworkers about organizing. Union contracts are what actually protect equity. Not workshops. Not initiatives. Contracts. If you don't have one, it's time to start the conversation. (I've got resources for that too.)
Watch your company's next move. If they announce DEI cuts while simultaneously cutting diversity hiring, mentorship programs, or equity audits, document it. That pattern matters if you ever need to prove discrimination in court or to the NLRB.

The bottom line: The DEI backlash is real. It's also a distraction from the actual fight—which is union power. Volkswagen workers didn't win 20% raises because someone attended a diversity workshop. They won because they organized collectively and had a contract to back them up.

That's the move. That's what we're doing next.

📋 The Quick Action: Demand Pay Transparency

Use this template to ask your company for pay equity data:

Subject: Request for Pay Equity Data Transparency

Dear [HR Director/CEO],

Given recent changes to diversity initiatives, I'm requesting that our company publish anonymized pay data by job title, department, and demographic information (race, gender, age). This is standard practice for companies committed to equity and legal compliance.

Transparency on pay is not a "DEI initiative"—it's a legal requirement under the Equal Pay Act. I expect a response within 10 business days.

Respectfully,
[Your Name]

Why this matters: If they refuse, that's a data point. If they claim they "can't" release the data, ask why. Push back. The more you normalize asking for transparency, the harder it is for them to hide discrimination.

🔗 The Receipts

Now, what are we doing about it?

In solidarity and with a lot of coffee,
Maya