Labor Unions

Derek Ezell

Microeconomics

Mr. Babb

November 14, 2007

Labor Unions

A labor union is an organization of workers. The labor union bargains with the employer on behalf of union members and negotiates labor contracts with employers. This negotiation may include wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, and workplace safety and policies. The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other non-member workers. These organizations may comprise of individual workers, professionals, past workers, or the unemployed. The most common purpose of the organization is to maintain or improve the conditions of their environment.

Most labor unions claim a right of exclusivity. The labor union has the authority to determine who may be a member of the union and who may not. Most unions assert a right to mandate that only its members may be permitted to work at certain jobs. Furthermore, the union contract is exclusive with regard to the employer, an employer is generally not permitted to seek out the services of another labor union or hire another competing labor union even if he is dissatisfied with the performance of the current labor union.

Unions use collective bargaining, which is where they union is able to operate openly and are recognized by employers, they may negotiate with employers over wages and working conditions. If the union does not get what they desire, they use industrial action, which is organizing strikes or resistance to lockouts in furtherance of particular goals.

Unions usually operate on one of several models including a closed shop, a union shop, an agency shop, or an open shop. A closed shop employs