Labor Unions
A labor union is an organization of workers that have banded together to achieve common goals, such as higher pay, increasing the number employees an employer hires, and better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members (rank and file members) and negotiates labor contracts (collective bargaining) with employers. Other actions may include the negotiation of:
- Wages
- Work rules
- Complaint procedures
- Rules governing hiring
- Firing and promotion of workers
- Benefits
- Workplace safety and policies
The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases, on other non-member workers. Union officials can force compulsory union dues from employees, members and nonmembers alike, as a condition for keeping their jobs.
Additional Labor Union Activities
Aside from collective bargaining, activities vary but may include:
- Provision of benefits to members: Early trade unions often provided a range of benefits to insure members against unemployment, ill health, old age, and funeral expenses. In many developed countries, these functions have been assumed by the state; however, the provision of professional training, legal advice and representation for members is still an important benefit of trade union membership.
- Industrial action: Trade unions may enforce strikes or resistance to lock outs in furtherance of particular goals.
- Political activity: Trade unions may promote legislation favorable to the interests of their members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties for public office. In some countries, trade unions may be invited to participate in government hearings about educational or other labor market reforms.
Unions, Wages, and the Future
Unions have generally won higher wages and better working conditions for their members. However, the increase in the salaries is said to have reduced the number of jobs available for union members. Since the 1970s, the proportion of employees who are part of unions has been on a steady decline. Some business thinkers believe that improvement in minimum wage and safety regulations has reduced the need for unions to negotiate.
Unions seem to do better in regulated, monopolistic environments. Economic surveys show that union negotiate salaries that are 15% to 20% higher than nonunion salaries.
Percent of Industries Unionized (USA)
- Public Sector, 37.4
- Private Sector, 7.2
- Life, Physical, and Social Science, 1
- Community and Social Service,, 16.1
- Education, Training, and Library, 38.1
- Health Care Practitioner and Technical, 13.6
- Health Care Support, 35.6
- Protective Service, 35.6
- Building, Grounds Cleanings, and Maintenance, 11.3
- Office and Administrative Support, 10.3
- Construction and Extraction, 21
- Installation, Maintenance, and Repair, 16.4
- Production, 16.6
- Transportation and Material Moving, 18.2
Trade union density will vary according to country as well.
Trade Union Density in Different Countries (%)
The density of trade unions in different countries.