Labor Unions
Description
Establishments in this industry represent members in employment contract negotiations and provide workplace support. Major organizations in the US include the American Federation of State, County and Municipal Employees; the International Brotherhood of Teamsters; the National Education Association; and the Service Employees International Union. Outside the US, major organizations include the All-China Federation of Trade Unions, the Congress of South African Trade Unions, and France's General Confederation of Labor.
Worldwide, trade union membership is highest in Iceland, Denmark, Sweden, Finland and Norway, according to Qery.
The US labor union industry includes about 14 million members in 2024. About 10% of US workers belong to unions. The union membership rate for public-sector workers is more than 32%, which is more than five times higher than the rate for private-sector workers.
COMPETITIVE LANDSCAPE
Business and job growth drive demand. The profitability of individual organizations depends on ability to expand membership. Large unions have stronger bargaining power and advantages in marketing and finance. Small unions can succeed by serving a local market or individuals in specialized industries or professions.
Organized labor's decline in the US over the past several decades has been driven by greater labor mobility, the flight of manufacturing jobs from the US, and Right-to-Work (RTW) and other states laws restricting the power of unions.
PRODUCTS, OPERATIONS & TECHNOLOGY
The majority of revenue comes from religious congregation membership and business & professional association membership at about 25% each. Unions also generate revenue from program services (about 20%) and development training programs (about 10%). Other sources of revenues also come from trading securities and commodity contracts as well as private contributions.
National unions may have local, state, regional, or international chapters, also known as affiliates or delegates. Unions may belong to larger unions, such as the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). An individual union's membership can vary: local chapters may have less than 100 members while national organizations claim millions.
Unions represent groups of workers within common industries or professions. Closed shop employers require union membership of workers, but union membership is optional in open shop employers. Some states have Right-To-Work (RTW) laws, and prohibit union membership as a condition of employment. In RTW states, unions may represent workers without union affiliation.
Unions negotiate with management to establish general employment terms, including fair wages, health benefits, pension plans, safety requirements, job security, and overtime compensation. Contracts may include worker involvement in major corporate policy decisions. Due to collective bargaining, union workers generally earn more than nonunion. Unions also enforce contract terms and typically have established grievance procedures for violations. Contracts are generally renegotiated every few years. If unions and management can't agree, the union may order a work stoppage or a strike. Forms of protest include picket lines and boycotts.
Unions also lobby for legislation favorable to the members and industries represented. Unions may endorse politicians and political causes that support membership goals. Many political candidates eagerly pursue union endorsements, as memberships can represent a large number of constituents and provide grassroots campaign support. Unions may have separate political action committees (PACs) to raise and donate funds to favorable political parties.
Unions often dedicate local resources to organizing new chapters. To start a new chapter, interested workers must file a petition to hold a union election with the National Labor Relations Board (NLRB). The petition must have support from at least 30% of the workforce. The NLRB conducts elections and, with a majority vote, certifies unions as designated bargaining representatives. Depending on contract terms, unions may administer certain benefits (such as pensions and health insurance plans) typically managed by employers. Some unions offer worker training, education, and certification.
Unions employ labor lawyers and mediators to negotiate contracts and resolve disputes. Other jobs may require expertise in accounting; administrative, health care plan, or pension management; and health and safety procedures.
Worldwide, trade union membership is highest in Iceland, Denmark, Sweden, Finland and Norway, according to Qery.
The US labor union industry includes about 14 million members in 2024. About 10% of US workers belong to unions. The union membership rate for public-sector workers is more than 32%, which is more than five times higher than the rate for private-sector workers.
COMPETITIVE LANDSCAPE
Business and job growth drive demand. The profitability of individual organizations depends on ability to expand membership. Large unions have stronger bargaining power and advantages in marketing and finance. Small unions can succeed by serving a local market or individuals in specialized industries or professions.
Organized labor's decline in the US over the past several decades has been driven by greater labor mobility, the flight of manufacturing jobs from the US, and Right-to-Work (RTW) and other states laws restricting the power of unions.
PRODUCTS, OPERATIONS & TECHNOLOGY
The majority of revenue comes from religious congregation membership and business & professional association membership at about 25% each. Unions also generate revenue from program services (about 20%) and development training programs (about 10%). Other sources of revenues also come from trading securities and commodity contracts as well as private contributions.
National unions may have local, state, regional, or international chapters, also known as affiliates or delegates. Unions may belong to larger unions, such as the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). An individual union's membership can vary: local chapters may have less than 100 members while national organizations claim millions.
Unions represent groups of workers within common industries or professions. Closed shop employers require union membership of workers, but union membership is optional in open shop employers. Some states have Right-To-Work (RTW) laws, and prohibit union membership as a condition of employment. In RTW states, unions may represent workers without union affiliation.
Unions negotiate with management to establish general employment terms, including fair wages, health benefits, pension plans, safety requirements, job security, and overtime compensation. Contracts may include worker involvement in major corporate policy decisions. Due to collective bargaining, union workers generally earn more than nonunion. Unions also enforce contract terms and typically have established grievance procedures for violations. Contracts are generally renegotiated every few years. If unions and management can't agree, the union may order a work stoppage or a strike. Forms of protest include picket lines and boycotts.
Unions also lobby for legislation favorable to the members and industries represented. Unions may endorse politicians and political causes that support membership goals. Many political candidates eagerly pursue union endorsements, as memberships can represent a large number of constituents and provide grassroots campaign support. Unions may have separate political action committees (PACs) to raise and donate funds to favorable political parties.
Unions often dedicate local resources to organizing new chapters. To start a new chapter, interested workers must file a petition to hold a union election with the National Labor Relations Board (NLRB). The petition must have support from at least 30% of the workforce. The NLRB conducts elections and, with a majority vote, certifies unions as designated bargaining representatives. Depending on contract terms, unions may administer certain benefits (such as pensions and health insurance plans) typically managed by employers. Some unions offer worker training, education, and certification.
Unions employ labor lawyers and mediators to negotiate contracts and resolve disputes. Other jobs may require expertise in accounting; administrative, health care plan, or pension management; and health and safety procedures.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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