Labor Unions

Overview

Although they're most famous for bringing us the weekend, labor unions, broadly speaking, help workers organize their efforts so they can negotiate as a single entity rather than as individuals (see video overview). Workers in a particular industry, trade, or company form labor unions to improve aspects of their working conditions, such as pay or benefits.

The first US union was created in 1794, when cobblers in Philadelphia formed the Federal Society of Journeymen Cordwainers. Antiunion actions from the US government continued for decades until the Great Depression, when the National Labor Relations Act granted workers the right to form unions and strike.

As of 2023, roughly 10% of US wage and salary workers were union members, down from roughly 20% in 1983. Critics of labor unions argue that unions not only make it more difficult to discipline low performers but also drive up labor costs. Union advocates, however, believe unions are an important tool for increasing workers' pay and benefits.

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