How do labor unions work?

Employees of a trade, business, or industry form a labor union to improve pay, benefits, and working conditions. A labor union, sometimes referred to as a “trade union,” “workers union,” or “labor organization,” appoints representatives to engage in collective bargaining negotiations with employers. If the negotiations are successful, a temporary agreement that specifies working conditions will be reached.

In the United States, labor unions have a long history of organizing workers to fight for rights and protections granted to them, like a minimum wage and shorter workdays. The first strike occurred before the American Revolution, and shoemakers in Philadelphia founded the first union in 1794. The American Federation of Labor (AFL) was established five years after the Federation of Organized Trades and Labor Unions was established in 1881.

How Trade Unions Operate

Democratic elections are held in labor unions to select leaders who best serve their members’ interests. In exchange for paying dues to the union, workers receive advocacy from the labor union. Labor unions are typically industry-specific and most prevalent among public sector employees (government), transportation, and utilities.

A local group of workers needs a national labor union charter to establish a union. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) and the Change to Win Federation (CtW) are the two major organizations that regulate most labor unions in the United States. Following their merger in 1955, the two organizations became the AFL-CIO. In 2005, the CtW separated from the AFL-CIO.

Almost all unions have a similar structure and mode of operation. According to U.S. law, an employer must engage in active and sincere negotiations with a union, but the company is not obligated to accept any particular conditions. The employer and the union’s bargaining unit, a group of members tasked with making sure their fellow members are fairly compensated and represented, engage in several rounds of negotiations.

A collective bargaining agreement (CBA) is ultimately decided upon and executed. Along with other terms of employment, including sick and vacation days, perks, working hours, and working conditions, the CBA also specifies wage scales.

When the current one expires, the labor union and management must negotiate and sign a new CBA. Once an employer signs a CBA, changes to the agreement require approval from a union representative.

Illustration of a Labor Union

With around 3 million members, the National Education Association (NEA) is the largest labor union in the U.S. and represents educators in general.

It is a voice for educators in public schools, substitute teachers, instructors in higher education, education support staff, administrators, retired educators, and students pursuing teaching careers.

The NEA collaborates with state and local education systems to establish fair pay and working conditions for its members.

The Labor Unions’ Past

American labor unions have been vital to the country’s workforce. Labor unions in the industrial sector battled for better pay, longer working hours, and safer working conditions. Labor unions made efforts to outlaw child labor as well.

The United States has a long history of labor unions; the first strike occurred in 1768 when journeyman tailors in New York rebelled over a wage cut. This led to the establishment of the Federal Society of Journeymen Cordwainers in Philadelphia in 1794, regarded as the birthplace of trade union organizations.

Throughout the 19th and early 20th centuries, labor organizations frequently refused to admit black people, women, and immigrant groups; as a result, the excluded groups established their unions. Asian workers are underrepresented in labor unions, but overall, the membership is quite varied now, with more women than ever before, as well as black and Latinx workers.

The National Labor Relations Act, sometimes called the Wagner Act, allowed people to organize unions in 1935. It granted unionized workers the right to strike and collective bargaining for better working conditions. The National Labor Relations Board, a new independent organization, was established to oversee the act’s implementation, which also promoted collective bargaining and prevented unfair employer tactics.

Recent laws and court rulings have made organizing more difficult for unions. Due to right-to-work laws, contracts requiring employees to join a labor union to obtain or retain a job are now illegal in 27 states.

In Janus v. American Federation of State, County, and Municipal Employees, the U.S. Supreme Court ruled in 2018 that public employees could not be forced to pay dues to a union to support the organization’s collective bargaining efforts on their behalf.

The U.S. House of Representatives enacted the Protecting the Right to Organize Act (PRO Act) in March 2021. Pro-union legislation aims to override right-to-work laws and facilitate the formation of unions. With most Republicans rejecting the act and referring it to the Committee on Health, Education, Labor, and Pensions, the proposal has been blocked in the Senate as of September 2022.

Disparaging Voters’ Unions

Certain business owners, industry associations, and think tanks support right-to-work legislation because requiring union membership to obtain employment reduces competition in the free-market economy. Specific labor union contracts, like those of the police and teaching unions, have come under fire for making it excessively difficult to remove violent, abusive, and incompetent workers.

For instance, a 2019 examination of 656 police union contracts nationwide found that 73% of them had an appeals procedure where arbitrators chosen in part by the local police union made the final decisions about disciplining and terminating officers. As a result, numerous police officer disciplinary proceedings and terminations have been overturned.

In 2020, the AFL-CIO issued guidelines on police reform, saying that engaging police affiliates rather than isolating them was the best way to confront police brutality. Nevertheless, some in the labor movement have called for the expulsion of police unions on the basis that they shield abusive officers.

Labor unions have occasionally been discovered to be involved in organized crime. According to the U.S. Department of Justice, “As of 2020, the United States had obtained relief in 24 civil RICO cases involving labor organizations affiliated with the International Brotherhood of Teamsters (IBT), the Laborers International Union of North America (LIUNA), the former Hotel Employees and Restaurant Employees International Union (HERE), and the International Longshoremen’s Association (ILA).”

Unions’ Political Function

In addition to supporting candidates in municipal and federal elections, labor unions have been active in politics by advocating for their members’ interests on workplace safety matters. The Supreme Court’s 2018 ruling prohibiting obligatory dues for union-protected public employees reduced the unions’ capacity to finance political campaigning.

On its platform, the Democratic Party declares its support for labor unions, an endorsement it typically receives. Law enforcement organizations are among the unions that back Republican candidates. The Republican Party has historically opposed laws that facilitate unionization, like the PRO Act, since they see unions as a danger to employee freedom in the workplace.

How do labor unions operate?

An organization that engages in collective bargaining with an employer to defend the economic standing and working conditions of employees is known as a labor union. Ensuring equitable pay, benefits, and working conditions for union members is the goal. Union contracts outline pay, perks, working conditions, and health and safety regulations.

What Kinds of Labor Unions Are There?

Trade unions stand up for employees in specific industries. A trade union is the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO). Industrial unions like the National Education Association (NEA) represent workers in a particular industry. The American labor union NEA is the biggest.

What is the number of American workers in labor unions?

Fourteen million American workers belonged to a labor union in 2021. This amounts to 10.3% of the population that is employed.

The Final Word

A labor union is a group of employees established to bargain for increased benefits, safer working conditions, and higher employee wages. Representatives of a labor union are chosen to bargain on the group’s behalf with the employer. In the U.S., labor unions have a rich and illustrious history of defending the rights and interests of workers.

Conclusion

• A labor group looks out for the interests of all workers by negotiating with companies about things like pay and working conditions.
• Labor groups work like governments and are unique to each industry.
• There are local groups of labor unions, and each one gets a charter from the national organization.
• U.S. employers are usually required to deal with a union in good faith, but they are not required to agree to specific terms.
• People have said that some labor union contracts make it too hard to fire destructive, violent, or ignorant workers.