Everyone is talking about income inequality in the United States. Wages have been stagnant, despite an economic recovery from the 2008 recession. The “1 percent vs. the 99 percent” has become part of our lexicon.

It wasn’t always this way. The economic boom of the post-World War II era lifted all boats — thanks in large part to labor unions and a social contract that respected workers and their contribution to a sound economy. Some date the shredding of the social contract to President Ronald Reagan’s busting of the air traffic controllers union 35 years ago. Only the most resolute anti-labor analysts could fail to connect the dots: The decline in wages and the growing income gap in this country have occurred in tandem with the attack on labor.

That is why the Verizon strike, which ended after the two sides reached an agreement in principle on May 27, is significant for working people around the country: 40,000 Verizon workers along the East Coast — members of the Communications Workers of America and the International Brotherhood of Electrical Workers — went on strike on April 13 to hold the line on the erosion of worker rights and benefits. They have been working without a contract since August, as the company attempted to cap pensions, cut benefits, implement forced overtime and outsource more work to other countries, all in the name of “cost-savings.” Verizon has already outsourced 5,000 jobs to Mexico and the Philippines.

Yet the company crying poverty made $39 billion over the past three years and $8.9 billion in 2015 alone, and has paid its executives handsomely. The CEO raked in $18.2 million, one of the five highest-paid executives in telecommunications.

The union members must still vote to ratify the four-year proposal, but the standoff demonstrated how important it is for unions to take a stand for justice and fair play for their members — and for the rest of the labor movement to support them when they do.