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Organized Labor: Definition, History, Purpose, Benefits, and Challenges

Last updated 02/02/2024 by

Dan Agbo

Edited by

Fact checked by

Summary:
Organized labor, through unions and collective bargaining, empowers workers to secure higher wages, improved benefits, and better working conditions. This article explores the history, advantages, and challenges of organized labor, shedding light on its impact on the economy and workers’ lives.

What is organized labor?

Organized labor is not just a mere collective strategy; it is a pivotal force that unites workers in unions to engage in collective bargaining. This strategic alliance is forged with the goal of securing not only enhanced wages but also improved job benefits and working conditions. Unions, synonymous with organized labor associations, assume a critical role as staunch advocates for workers’ rights, amplifying their voices in the socio-economic landscape.

How organized labor works

The intricate workings of organized labor unfold as workers actively participate by aligning with unions, forming a collective front to negotiate with employers. Regulatory oversight, facilitated by government agencies like the National Labor Relations Board in the United States, shapes and governs the formation of unions. It’s a meticulous process where union elections come to fruition upon accumulating sufficient signatures within a workplace. These signatures bestow upon the union the authority to negotiate on behalf of all employees, fostering a collaborative and collective approach to workplace representation.

Types of unions

Within the realm of organized labor, unions take distinctive forms, with two predominant types being horizontal and vertical. Horizontal unions unite members who share a common skill, fostering solidarity among those with similar expertise. On the other hand, vertical unions comprise workers from the same industry, cutting across various skill sets to address broader issues and concerns within the sector.

History of organized labor

Traceable back to the industrial revolution, organized labor sprouted as a response to the deplorable working conditions amidst the shift from agriculture to burgeoning factories. In those early days, workers endured strenuous hours, navigating seven-day workweeks with minimal job security. The birth of successful unionization efforts, exemplified by the American Federation of Labor in 1881, ushered in transformative changes, including the establishment of the eight-hour workday.

Key milestones

An essential chapter in the history of organized labor is marked by the enactment of the Wagner Act in 1935. This legislative milestone solidified the rights of workers to organize and form unions, setting the stage for pivotal improvements such as the introduction of paid weekends and enhanced job security.

Organized labor’s purpose and success

At its core, organized labor exists to elevate the conditions and economic standing of the working class. Demonstrating its efficacy, organized labor has been the driving force behind significant improvements in the lives of millions of workers in the U.S. manufacturing and agricultural sectors. Union membership, once considered a golden ticket to the middle class, underscores the success of this collective endeavor.

Decline of organized labor

The 1980s stand as a watershed moment in the trajectory of organized labor in the U.S., marred by the impact of anti-union policies and intensified global competition. Government actions, exemplified by the mass firing of air traffic controllers, coupled with the wave of globalization, dealt a blow to the bargaining power of domestic unions, contributing to a discernible decline in their influence.

The bottom line

Organized labor, a potent force in advocating for the working class, has faced challenges in recent decades. While unions can negotiate better conditions, increased competition from low-wage workers abroad has impacted their strength.
Weigh the Risks and Benefits
Here is a list of the benefits and the drawbacks to consider.
Pros
  • Enhanced wages through collective bargaining
  • Improved job benefits for unionized workers
  • Secured better working conditions
Cons
  • Potential increased cost of a unionized workforce for companies
  • Perceived negative impact on product prices and competitiveness
  • Challenges like resistance from some companies, e.g., Starbucks and Amazon

Frequently asked questions

What is the main purpose of organized labor?

The main purpose is to improve the conditions and economic power of the working class through collective bargaining for higher wages, better benefits, and job protection.

How do workers engage in organized labor?

Workers participate by joining unions, which then negotiate with employers on their behalf. Union formation is typically regulated by government agencies.

What are the types of unions in organized labor?

There are two main types: horizontal unions, uniting members with a common skill, and vertical unions, composed of workers from the same industry.

What historical milestones shaped organized labor?

Key milestones include the Wagner Act of 1935, which solidified workers’ rights, leading to improvements like the eight-hour workday and job security.

Why did organized labor decline in the 1980s?

Factors include anti-union government policies and increased global competition, impacting the bargaining power of domestic unions.

Key takeaways

  • Organized labor aims for enhanced wages, improved benefits, and better working conditions.
  • Unions, integral to organized labor, play a vital role in advocating for workers’ rights.
  • The history of organized labor reflects significant milestones, such as the Wagner Act of 1935.
  • While organized labor has brought positive changes, the 1980s saw a decline influenced by anti-union policies.
  • Understanding the pros and cons helps individuals navigate the complexities of organized labor.

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