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Labor Union
By WILL KENTON | Updated Sep 16, 2019
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KEY TAKEAWAYS
A labor union represents the collective interests of workers, bargaining with
employers over such concerns as wages and working conditions.
Labor unions are specific to industries and work like a democracy.
Labor unions have local chapters, each of which obtains a charter from the
national-level organization.
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The National Labor Relations Act, also known as the Wagner Act, guarantees private sector
employees the right to form labor unions. The act also gives unionized employees the right
to strike and to bargain jointly for working conditions.
Two large organizations oversee most of the labor unions in the U.S.: the Change to Win
Federation (CtW) and the American Federation of Labor and Congress of Industrial
Organizations (AFL-CIO). The AFL-CIO formed in 1955 after the two groups merged and has
nearly 20 million members. The CtW spun off from the AFL-CIO in 2005.
Labor unions exist in many nations around the globe, including Sweden, Germany, France,
and the United Kingdom. Many large unions will actively lobby legislators—on both a local
and federal level—to achieve goals they see as beneficial to their membership.
The NEA works with local and state educational systems to set adequate wages for its
members, among other things. When negotiating salaries on behalf of its teachers, the NEA
starts with a bargaining unit. This unit is a group of members whose duty is to deal with a
specific employer. The bargaining unit, as its name implies, works with an employer to
negotiate and assure that its members are properly compensated and represented.
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U.S. law requires the employer—in this case a school district—to actively bargain with the
union in good faith. However, the employer is not required to agree to any specific terms.
Multiple negotiation rounds are conducted between the bargaining party and the employer,
after which a collective bargaining agreement (CBA) is agreed upon and signed. The CBA
outlines pay scales and includes other terms of employment, such as vacation and sick days,
benefits, working hours, and working conditions.
After signing the CBA, an employer cannot change the agreement without a union
representative’s approval. However, CBAs eventually expire, at which time the labor union
must negotiate, and both parties must sign a new agreement.
Related Terms
Organized Labor Definition
Organized labor is an association that engages in collective bargaining to improve workers' economic
status and working conditions. more
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