What Is a Workers Union? Definition, Pros and Cons, Examples

What Is a Workers Union?

By Keith Speights – Updated Nov 18, 2024 at 1:31 PM

Key Points

Workers unions in the US consist of about 14.3 million members advocating for better work conditions.
Unions date back to 1794, evolving notably with the creation of AFL-CIO in 1955, a major force in labor.
Unions balance pros like increased pay and cons like potentially higher employer costs and rigidity.

When some people think of a workers union, they think of a labor strike or other major conflict between an employer and its workers. While workers unions do sometimes engage in such skirmishes, there’s much more to the role they play in the economy.

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People standing in a circle with their hands raised together in the middle. — Image source: Getty Images.

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Pros	Cons
Can bring increased pay and benefits	Require dues and fees, in some cases even for workers who don’t want to join the union
Make it easier to address problems with employers	Can make promotion for younger workers more difficult due to unions’ focus on seniority
Provide a voice in advancing political causes that benefit workers	Can cause employers to be less competitive and reduce job security over the long term

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Workers unions also have pros and cons for employers, such as:

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Pros	Cons
Can result in lower employee turnover	Can increase labor costs that lead to employer becoming less competitive, such as by requiring pensions
Can result in better trained workforce	Can make it harder to promote and terminate workers
Can improve workplace safety and therefore profitability	Make it easier for employees to strike

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About the Author

Keith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.

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