Labor Union | Meaning and Definition

What is Labor Union?

A labor union which is also known as a trade union or a worker’s union is a group that advocates the interests of employees collectively. Labor unions assist employees in banding together to bargain with employers on pay, hours, benefits, and other terms of employment. Labor unions are frequently industry-specific, with manufacturing, mining, building, transport, and the public sector being the most common. 

Advantages Of Labor Union 

•   Easier Political Organization – Unions have the ability to magnify and advance political agendas that are popular among the working class. That’s not to say that unionized employees always support their union’s political agenda, but in general, unions help keep candidates focused on problems that affect all unionized and non-unionized workers.
•   Promoting Higher Wages – Unions are able to win greater pay and benefits via collective bargaining. However, it is not just unionized workers that gain from this. In order to compete for talent, businesses have also increased pay for non-unionized workers.

Disadvantages Of Labor Union 

•   Increasing Costs – While it is true that unions may frequently obtain better pay for their members, it can also be said that employing unionized personnel is more expensive than hiring non-unionized individuals. It also includes additional protections and rules and regulations that might result in further litigation and negotiating expenses if matters are submitted to arbitration or through the grievance procedure.
•   Discourage Individuality – Although if they disagree with the union’s choices, they are obligated by them. The only way an unionized employee may get out of a bad position in certain cases is to leave, which isn’t always an option.