Labor Relations | Employee Relations
Understanding the Pros and Cons of Labor Unions
Read Time 3 mins | Apr 9, 2024 | Written by: Frankie Kourtis

Worker interest in unions has grown in recent years. Many employers are now asking themselves what they need to know about this recent re-emergence of the U.S. labor movement.
According to the Economic Policy Institute, 16.2 million U.S. workers were represented by a union in 2023 — an increase of 191,000 from 2022. Evidence also suggests that another 60+ million workers wanted to join a union in 2023 but were unable to do so. These figures make it clear that the potential for unionization looms in many sectors that have not historically given it much thought.
Common Union vs. Non-Union Perspectives
While workers unions have played an important role in the development of American industry and our broader economic trends, many more workers remain against unions and are not interested in joining or paying for participation. Both perspectives are rooted in certain priorities, and have led to legal developments such as Right to Work laws and Union Security Agreements.
In general, employers prefer a non-unionized workforce for more freedom to create a competitive environment, promote workers based on merits, and decide their own policies. Employees tend to be more split with union vs. non-union proponents. Pro-union employees hope collective bargaining will yield better wages and working conditions. Anti-union employees are wary of creating workplace tension, giving up control of their own decisions to the union, and the requirement to pay dues. In the event of arbitration, the outcome is decided by a third party and there is no guarantee it will satisfy the priorities of either side.
Pros and Cons of Labor Unions
The chart below explores the pros and cons of labor unions and a unionized workforce for both the employees and their employers.
Pros of Unionization |
Cons of Unionization |
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For Workers |
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For Employers |
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Be Prepared For the Risk of Strikes, Grievances, and Arbitration
The core concept of a union is an attempt to facilitate a more structured, transparent, and productive relationship between employers and their employees, but unionization can sometimes have the opposite effect.
When union grievance talks and collective bargaining negotiations break down, the results can harm both the company and the workforce. However, employers should also know that their overall relationship with unions can be smoother with support from the right workplace environment, employee relations initiatives, and labor relations management tools.
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