Question

What is a labor union?

Short answer

A labor union is a group of workers that are usually from the same trade.

Step-by-step solution

Concept Introduction

Purpose of labor unions:

Union members collaborate to negotiate and enforce a contract with management that ensures the things that matter to you, such as fair pay, affordable health care, job security, and a predictable schedule.

Explanation

Labor unions are groups of workers who negotiate salaries and working conditions with employers. In a labor market, labor unions behave as a monopoly. They can easily negotiate higher salaries and working conditions with companies than any one worker. Collective bargaining is the process of negotiating between businesses and labor unions.

Final answer

Hence, labor unions are a group of workers that are industry-specific and perform similarly to democracies.