A labor union is an organization of workers (mechanics, factory workers, teachers, actors, airline pilots, police officers, janitors, writers, doctors, and others) committed to defending their interests and enhancing wages as well as working conditions. The majority of the workers in a labor union must vote for the one who would represent them.

Employers are obligated by law to negotiate in good faith with a union, even if an employer is not obligated to be of the same opinion to any particular terms. As soon as a deal is attained through a negotiation, a collective bargaining agreement (CBA) is signed; wherein the two parties establishes the terms of employment for union members as well as the provisions for wages, conditions, hours, vacation, benefits, sick days and the like.

Labor union organization also contributes to disadvantages and advantages in the economy, the company and its members as well. Some of these are:

Pros

Labor union membership has provided labor protections for their members in important ways, such as:

1. Imparting information to members about the rights of workers and other available programs. Giving representation to worker members facing legal action. Labor unions help employees especially in terms of representation, security of tenure and salary matters. People tend to stay longer in a company if they feel some measure of protection.
   
   
2. Convincing their members to exercise workplace rights and participate in programs by lessening anxiety of employer retribution; assisting members with the required procedures, and smoothen the progress of conducting the disputes on workers' rights.
   
   
3. Employees will have an avenue for their grievances where they can be shielded from exploitation, and ask aid to sustain health and safety regulations.
   
   
4. The possibility for employees to have higher wages than those from non-unionized industries.
   
   
5. Helping to negotiate productivity deals to the management. This would mean they help the company increase their output in turn, be able to provide higher wages to the workers. It can be a means of implementing new work practices which could enhance productivity.
   
   
6. Protecting union members employed under the growing service sector industry from the possibilities of a part time and temporary status of employment.

Cons

Labor union’s greatest advantages can also be transformed to some disadvantages, wherein:

1. Labor unions, if competitive, will tend to demand for higher wages through threat of strikes which may cause unemployment; especially if the wage is above equilibrium.
   
   
2. These unions usually consider the needs of its members only and often overlook the difficulties of those who are non members of the union.
   
   
3. The union workers on strike tend to be unproductive thus lost of output and sales will result. Companies would often go out of business if this happens.
   
   
4. If unions become too powerful and they force wages to be too high, then they may cause unemployment and inflation.
   
   
5. Employees will sometimes have to decide between being a member of a labor union and their own career ambition. Labor union members will have a very hard time getting promoted because company management oftentimes do not to want somebody from the union as part of their team.
   
   
6. The perception of our labor force during the present times is now different. Most employees who often faced oppression would mostly prefer to be silent or resign from work rather than protest.
   
   
7. There are many cases that employees just want their voice be heard and not necessarily be regarded as member of the union.