Labor Unions

A labor union is an association of employees that advances member interests through collective bargaining with an employer. Areas of negotiation typically include wages, benefits, work rules, and other conditions of employment, such as hiring, discipline, and termination of employees.

A significant power imbalance between employers and employees during the early stages of the Industrial Revolution (1760–1830) led to the formation of unions. Employers took advantage of a labor glut caused by large numbers of agriculture workers who, searching for a better life, flooded cities for nonskilled factory jobs. The workers hoped for decent wages, job security, and respect for their labor. Instead, managers dictated the conditions of work based on their own interests and paid very low wages to those willing to work long hours in unhealthy work environments. There was always someone willing to do the work.

Labor unions organized workers based on their common interests. Unions defended workers against abusive employers and negotiated wages on their behalf. A union organizer, often risking his or her own employment at the company, inspired unfairly treated employees to collectively withhold their labor in an attempt to financially cripple the business. If replacement workers, referred to as “scabs,” did not cross the picket line (see the University of Bridgeport case discussed below), then the employer would have to negotiate with the union for better wages, benefits, and working conditions. Unions collected dues from members to pay for safety net features, such as funds for striking families, and administrative expenses. Despite current legal protections, certifying a union continues to require courage by employees leading the unionizing effort. Labor union accomplishments include higher wages, shorter hours, prohibitions on child labor, grievance procedures, and worker's compensation.

This entry describes the process of certifying a union and presents empirical research examining the impact of unionization. Next, the roots of “class conflict” analysis between employers and labor is explored in the writings of Adam Smith, particularly his understanding of the wage issue. This is followed by a summary of labor union history in the United States and other selected nations, the problem of union corruption (particularly in the Teamsters union), a profile of the union organizer Cesar Chavez, and the ethics of union management tactics. The entry concludes with a survey of the current status of unions around the world and a brief discussion on the future of unions.