What Is a Labor Union?

What Is a Labor Union?

Let me explain what a labor union is: it's a collective organization of workers that comes together to negotiate with employers on matters like pay, benefits, and working conditions. In the United States, these unions have been historically significant across various industries, and they've been key in advancing labor rights since the 1700s. Even with declining membership, groups like the National Education Association (NEA) are still out there advocating for workers. In this piece, I'll cover the definition, history, and examples of labor unions, along with their impact and relevance today.

Key Takeaways

You should know that labor unions represent workers in negotiations with employers over pay, benefits, and working conditions. The NEA stands as the largest labor union in the U.S., boasting nearly 3 million members. There are right-to-work laws in 27 states that stop contracts from requiring workers to join a union to get or keep a job. Union membership in the U.S. has dropped to about 10% of workers, down from a peak of nearly 33% in the 1950s. Historically, labor unions have been crucial in pushing for safer working conditions and better pay.

Understanding the Functionality of Labor Unions

Labor unions typically operate with a democratic structure, where members elect officers to make decisions on their behalf. As a worker, you pay dues to the union, and in return, it advocates for you. These unions are often specific to industries, especially among government employees and those in transportation and utilities.

To form a union, a local group of employees gets a charter from a national-level labor organization. In the U.S., most unions are overseen by two large groups: the Change to Win Federation (CtW) and the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). The AFL-CIO came about in 1955 from a merger, and CtW split off from it in 2005.

Nearly all unions are structured similarly and function in comparable ways. U.S. law requires employers to bargain in good faith with a union, but they don't have to agree to specific terms. Negotiations happen in multiple rounds between the union's bargaining unit—a group ensuring members are properly compensated and represented—and the employer.

Eventually, they reach a collective bargaining agreement (CBA) that's signed. This CBA sets out pay scales and other employment terms like vacation, sick days, benefits, working hours, and conditions. Once signed, the employer can't change the agreement without union approval, but CBAs expire, requiring new negotiations and a fresh agreement.

It's important to note that while unions have been a major benefit to workers, their membership has significantly decreased since the mid-20th century peak.

Spotlight on a Prominent Labor Union: The NEA

Take the National Education Association (NEA), for example—it's the largest labor union in the United States with nearly 3 million members. It represents public school teachers, substitutes, higher education faculty, support workers, administrators, retired teachers, and students training to be teachers. The NEA collaborates with local and state educational systems to establish fair wages and working conditions for its members, among other efforts.

The Evolution of Labor Unions Throughout History

Labor unions have been critical in the U.S. workforce. In industrial settings, they've fought for safer conditions, better hours, and higher pay, and they've worked to end child labor. The history goes back before the country's founding; the first strike was in 1768 when New York journeyman tailors protested wage cuts. That led to the Federal Society of Journeyman Cordwainers in 1794 in Philadelphia, marking the start of trade union organization.

In the 19th and early 20th centuries, many unions excluded Black people, women, and immigrants, prompting those groups to form their own. Today, membership is more diverse, with higher numbers of women, Black, and Latino workers, though Asian workers remain underrepresented.

The Wagner Act of 1935 established the right to form unions, allowing strikes and joint bargaining for conditions. It encouraged collective bargaining, halted unfair employer tactics, and created the National Labor Relations Board for enforcement.

In 2023, there were 14.4 million U.S. wage and salary workers in unions. Recent legislation and court decisions have weakened union organizing. Right-to-work laws in 27 states ban contracts requiring union membership for jobs. A 2018 Supreme Court decision in Janus v. AFSCME means public employees can't be forced to pay dues for collective bargaining support.

In March 2021, the House passed the Protecting the Right to Organize Act (PRO Act) to ease union formation and override right-to-work laws. As of September 2022, it's stalled in the Senate, with most Republicans opposing it and sending it to committee.

Current Landscape of Labor Unions

Union membership peaked in the 1950s at nearly a third of the workforce, but it's been declining due to factors like the collapse of domestic manufacturing and loss of blue-collar jobs. A 2023 Treasury report connects this decline to growing income inequality between the middle class and top earners. Now, only about 10% of American workers are in unions, with government and public sector jobs—like teachers, police, and firefighters—making up about a third of members. Industries with higher unionization include utilities, transportation, warehousing, educational services, and entertainment.

Examining the Critiques of Labor Unions

Some business owners and think tanks back right-to-work laws, arguing that mandatory union membership hinders free-market competition. Certain union contracts, like those for teachers and police, get criticized for making it hard to fire incompetent or violent employees. For instance, a 2019 study of 656 police union contracts found 73% had appeals processes where arbitrators, partly selected by the union, made final decisions on firing and discipline, often overturning actions against abusive officers.

Parts of the labor movement have pushed to expel police unions for protecting violent officers, but the AFL-CIO's 2020 recommendations on police reform suggested engaging them instead of isolating. Sometimes, unions have been involved in organized crime; the U.S. Department of Justice notes relief in 24 civil RICO cases as of 2020 involving groups like the Teamsters, LIUNA, HEREIU, and ILA.

The Influence of Labor Unions in Politics

Labor unions have a big impact on politics by endorsing candidates and pushing for workplace safety. The 2018 Supreme Court decision banning mandatory dues for public workers hurt their funding for political advocacy. The Democratic Party generally supports labor and gets union endorsements, while some unions, like law enforcement ones, back Republicans. Republicans often see unions as a threat to workplace freedom and oppose laws like the PRO Act that make organizing easier.

What Do Labor Unions Do?

Labor unions represent their members both collectively and individually. Their negotiators meet with management to agree on pay, benefits, and conditions, resulting in a contract that members must approve. Day to day, they handle grievances, firings, or disciplinary actions for individual workers. They also ensure contract terms are followed, often through rank-and-file union positions.

What Are Examples of Labor Unions?

Trade unions represent workers in specific jobs, like the AFL-CIO. Industrial unions cover entire industries, such as the NEA, which is the largest in the U.S.

How Many U.S. Workers Belong to Labor Unions?

In 2023, about 14.4 million U.S. workers were union members, which is roughly 10% of the working population.

The Bottom Line

Labor unions act as a collective voice for workers, negotiating with employers for fair wages, better benefits, and safer environments through collective bargaining. They've got a rich history in the U.S., fighting for rights since the late 18th century, and they still represent diverse memberships today. Even with membership declines and legislative hurdles in recent decades, unions are essential in shaping labor policies and protecting workers' interests.