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How Labor Unions Have an Effect on Compensation

A labor union helps protect an employee’s wages, ensuring he is paid an appropriate wage for his work. When issues arise, the employee can contact his union representative to go to bat for him.

  1. Benefits

    • The benefit of belonging to a labor union is that wages are always the union's top priority. Union leaders work hard to ensure members receive sufficient wages for the work performed.

    Time Frame

    • After the employer has agreed to the terms of the labor union and signed a bargaining contract, the compensation benefits listed in the contract are legally binding until the contract expires.

    Potential

    • Labor unions can narrow the income gap for women and disadvantaged minorities.

    Strike Pay

    • When a union strikes, employees are not paid by employers. Unions typically provide strike pay to employees, which is lower than an employee’s average pay.

    Worker's Compensation

    • The labor union can achieve greater worker’s compensation benefits for a union member who is injured on the job.

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