Definition of trade unions

Summary

A trade union (labor union) is an organization of workers formed to maintain or improve the conditions of their employment. Its goals typically include securing better wages and benefits, improving working conditions and safety standards, establishing complaint procedures, and creating rules governing employment matters such as promotions and termination. Unions also work to protect and increase workers’ bargaining power through collective action and negotiation. Historically, a widely cited definition describes a trade union as a continuous association of wage earners aimed at maintaining or improving employment conditions. Modern definitions similarly emphasize that trade unions are organizations—predominantly of employees—whose principal activities include negotiating pay rates and employment conditions for members. In practice, unions are usually funded by members through union dues, governed by elected leadership, and represented by workplace volunteers who bargain with employers on behalf of the “rank and file,” negotiating collective bargaining agreements that can be binding on members and employers (and sometimes others).

Key Points

• 1

  Trade unions are worker organizations focused on improving and protecting employment conditions, including pay, benefits, safety, and employment rules.

• 2

  Unions typically operate through elected leadership and bargaining committees, using collective bargaining agreements negotiated with employers.

• 3

  Common definitions describe trade unions as continuous associations of wage earners (or predominantly employees) aimed at maintaining or improving employment conditions.