Role of Unions and Labor Relations

Labor unions are formed for the purpose of representing their members’ interests and resolving conflicts with employers. Some degree of conflict is inevitable between workers and management. Labor unions represent worker interests, and the collective bargaining process provides a way to manage the conflict. For management, the decision involves whether the organization will work with unions or develop (or maintain) nonunion operations. This decision is influenced by outside forces such as public opinion and competition.
Contract negotiations in a union setting involve decisions about pay structure, job security, work rules, workplace safety, and many other issues. These decisions affect workers’ and the employer’s situation for the term of the contract. Most national unions in the United States are affiliated with the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), an association that seeks to advance the interests of its members at the national level. Most national unions consist of multiple local units. Even when a national union negotiates the terms of a collective bargaining contract, negotiation occurs at the local level for work rules and other issues that are locally determined.
At meetings of the local union, they elect officials and vote on resolutions to strike. Most member contact is with the steward, an employee elected by union members to represent them in ensuring that the terms of the contract are enforced. Union membership in the United States peaked in the 1950s, reaching over one-third of employees. Since then, the share of employees who belong to unions has fallen. It now stands at 10.7% overall and 6.5% of private-sector employment. Competition for scarce human resources and stricter government regulation for workplace safety can lead employers to offer much of what employees traditionally sought through union membership.
Over one-third of government employees are union members, and a larger share are covered by collective bargaining agreements. In 1962 Executive Order 10988 established collective bargaining rights for federal employees. Organizations are concerned about whether union organizing and bargaining will hurt their performance, in particular, unions’ impact on productivity, profits, and stock performance. Through skillful labor relations, organizations can positively influence outcomes.