How Unions Work

Req 3 — What Labor Unions Do

3.
Explain to your counselor what labor unions are, what they do, and what services they provide to members. In your discussion, show that you understand the concepts of labor, management, collective bargaining, negotiation, union shops, open shops, grievance procedures, mediation, arbitration, work stoppages, strikes, and lockouts.

The Language of Labor

Requirement 3 is the vocabulary-building requirement. It asks you to understand and explain a long list of labor concepts. Do not just memorize definitions — your counselor will want you to explain these ideas in a conversation, using your own words and showing that you understand how they connect to each other.

Let’s break down each concept so you can walk into that discussion with confidence.

An illustrated scene of union representatives and management sitting across from each other at a long table with documents, representing a collective bargaining session

What Is a Labor Union?

A labor union is an organization of workers who come together to protect their shared interests. Instead of each worker negotiating alone with a large employer, the union negotiates on behalf of all its members. This gives workers much more bargaining power than any individual would have.

Unions do many things:

Key Concepts You Need to Know

Labor and Management

These two terms describe the two sides of the employment relationship:

The relationship between labor and management is at the heart of everything in this merit badge.

Collective Bargaining

Collective bargaining is the process where union representatives and management sit down together to negotiate the terms of a contract. This contract — called a collective bargaining agreement (CBA) — spells out wages, hours, benefits, workplace rules, and procedures for resolving disputes.

The word “collective” is key. Workers bargain as a group, not as individuals. This levels the playing field because a single worker has very little leverage compared to a large company, but a united workforce has significant influence.

Negotiation

Negotiation is the back-and-forth discussion where both sides try to reach an agreement. Good negotiation involves compromise — each side gives up something to get something else. Union negotiators might push for higher wages, while management might push for more flexible scheduling. The goal is to find terms that both sides can accept.

Union Shops vs. Open Shops

These terms describe whether workers at a particular workplace are required to join the union:

This is one of the most debated topics in labor law. Some states have “right-to-work” laws that prohibit union shops, meaning no worker can be required to join a union or pay dues as a condition of employment.

Grievance Procedures

A grievance is a formal complaint by a worker (or the union) that the employer has violated the contract. Grievance procedures are the step-by-step process for resolving these complaints. A typical grievance procedure works like this:

  1. The worker raises the issue with their immediate supervisor, often with a union steward present.
  2. If unresolved, the grievance moves to a higher level of management and union leadership.
  3. If still unresolved, it may go to a formal hearing.
  4. The final step is usually arbitration (see below).

Having a clear, written process protects both workers and management from unfair treatment.

Mediation and Arbitration

When labor and management cannot agree, outside help may be needed:

Think of it this way: a mediator is a coach helping you work it out, while an arbitrator is a referee making the call.

A mediator at a small round table with a union representative on one side and a management representative on the other, all engaged in discussion

Work Stoppages, Strikes, and Lockouts

When negotiations break down completely, more dramatic actions may happen:

Both strikes and lockouts are last-resort measures. They hurt both sides and are typically used only after all other negotiation efforts have failed.

National Labor Relations Board — Rights We Protect The NLRB explains the rights of workers to organize, bargain collectively, and take action — including strikes — under federal law.

Putting It All Together

These concepts are not isolated — they connect like links in a chain. Workers form unions to give labor a stronger voice when dealing with management. They use collective bargaining and negotiation to reach agreements. When disputes arise, grievance procedures, mediation, and arbitration provide structured ways to resolve them. The rules about union shops and open shops determine who participates. And when all else fails, strikes and lockouts are the ultimate expressions of disagreement.

When you talk with your counselor, try to explain how these pieces fit together — not just what each word means, but how the system works as a whole.