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By the end of this section, you will be able to:

  • Explain the concept of labor unions, including membership levels and wages
  • Evaluate arguments for and against labor unions
  • Analyze reasons for the decline in U.S. union membership

A labor union    is an organization of workers that negotiates with employers over wages and working conditions. A labor union seeks to change the balance of power between employers and workers by requiring employers to deal with workers collectively, rather than as individuals. Thus, negotiations between unions and firms are sometimes called collective bargaining    .

The subject of labor unions can be controversial. Supporters of labor unions view them as the workers’ primary line of defense against efforts by profit-seeking firms to hold down wages and benefits. Critics of labor unions view them as having a tendency to grab as much as they can in the short term, even if it means injuring workers in the long run by driving firms into bankruptcy or by blocking the new technologies and production methods that lead to economic growth. We will start with some facts about union membership in the United States.

Facts about union membership and pay

According to the U.S. Bureau of Labor and Statistics, about 11.1% of all U.S. workers belong to unions. Following are some of the facts provided by the bureau for 2014:

  • 12.0% of U.S. male workers belong to unions; 10.5% of female workers do
  • 11.1% of white workers, 13.4 % of black workers, and 9.8 % of Hispanic workers belong to unions
  • 12.5% of full-time workers and 6.0% of part-time workers are union members
  • 4.2% of workers ages 16–24 belong to unions, as do 14% of workers ages 45-54
  • Occupations in which relatively high percentages of workers belong to unions are the federal government (26.9% belong to a union), state government (31.3%), local government (41.7%); transportation and utilities (20.6%); natural resources, construction, and maintenance (16.3%); and production, transportation, and material moving (14.7%)
  • Occupations that have relatively low percentages of unionized workers are agricultural workers (1.4%), financial services (1.1%), professional and business services (2.4%), leisure and hospitality (2.7%), and wholesale and retail trade (4.7%)

In summary, the percentage of workers belonging to a union is higher for men than women; higher for blacks than for whites or Hispanics; higher for the 45–64 age range; and higher among workers in government and manufacturing than workers in agriculture or service-oriented jobs. [link] lists the largest U.S. labor unions and their membership.

(Source: U.S. Department of Labor, Bureau of Labor Statistics)
The largest american unions in 2013
Union Membership
National Education Association (NEA) 3.2 million
Service Employees International Union (SEIU) 2.1 million
American Federation of Teachers (AFT) 1.5 million
International Brotherhood of Teamsters (IBT) 1.4 million
The American Federation of State, County, and Municipal Workers (AFSCME) 1.3 million
United Food and Commercial Workers International Union 1.3 million
United Steelworkers 1.2 million
International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) 990,000
International Association of Machinists and Aerospace Workers 720,000
International Brotherhood of Electrical Workers (IBEW) 675,000

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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