DEFINITION of 'Organized Labor'

An association of workers united as a single, representative entity for the purpose of improving the workers' economic status and working conditions through collective bargaining with employers. Also known as "unions". There are two types: the horizontal union, in which all members share a common skill, and the vertical union, composed of workers from across the same industry.

BREAKING DOWN 'Organized Labor'

The union formation process in most countries is regulated by a government agency, such as the National Labor Relations Board in the United States. The group of employees wanting to form a union usually need a set amount of signatures, this amount is dependent on the jurisdiction it wants to form in. If enough signatures are obtained there is a vote by all employees and if passed the union will negotiate on their behalf with the employers.

RELATED TERMS
  1. Labor Union

    An organization intended to represent the collective interests ...
  2. Collective Bargaining

    The process of negotiating the terms of employment between an ...
  3. Credit Union

    Member-owned financial co-operative. These institutions are created ...
  4. National Association Of Federal ...

    An industry trade group founded in 1967 that represents federal ...
  5. Taft-Hartley Act

    A Federal law that was enacted in 1947 that prohibited certain ...
  6. Federal Credit Union - FCU

    A credit union chartered and supervised by the National Credit ...
Related Articles
  1. Insights

    Unions: Do They Help Or Hurt Workers?

    Learn the pros and cons of these organizations and how they fit into today's economy.
  2. Personal Finance

    The Top 5 Most Unionized Industries

    Unions don't have the membership numbers that they once did, but they are still a vital part of several different important industries.
  3. Personal Finance

    Tired Of Banks? Try A Credit Union

    These nonprofit organizations can provide a range of services for lower fees.
  4. Personal Finance

    The Main Differences between Credit Unions and Banks

    Consumers should know the main differences between credit unions and commercial banks when deciding where to do business.
  5. Personal Finance

    6 Benefits of Using a Credit Union

    Credit unions are community-focused and offer better interest rates than traditional banks.
  6. Personal Finance

    What Are Home-Based Credit Unions?

    They’re a far cry from a traditional bank, but that doesn’t mean you shouldn’t park your money there or get a loan – if one meets your needs.
  7. Insights

    How Education And Training Affect The Economy

    Education and training benefit not only the worker, but also the employer and the country as a whole.
  8. Small Business

    Macy's Workers May Strike at Midnight Tonight

    Chances of a workers' strike at Macy's increased Wednesday after the department store chain and the union were unable to reach an agreement.
  9. Insights

    How Lack Of Leadership Is Making Things Worse In Europe

    Lack of effective leadership is impeding the resolution of economic crisis in Europe.
  10. Investing

    Tentative Deal Reached Between Verizon and Unions (VZ)

    Verizon Communications reached a tentative deal with unions last Friday after workers had been on strike for nearly 7 weeks.
RELATED FAQS
  1. Do businesses in states with right-to-work laws have demonstrably less deadweight ...

    Learn more about the economic impact of right-to-work laws and how unions impact production and purchase levels. Explore ... Read Answer >>
  2. What is the difference between a state and a federally chartered credit union?

    Learn how federal chartered credit unions are regulated by the NCUA, while state chartered unions are regulated by their ... Read Answer >>
  3. Does the FDIC cover credit unions?

    Learn whether or not the FDIC insures your funds at a credit union, and what types of insurance are available at the different ... Read Answer >>
  4. Are eurodollars related to the currency called the euro?

    Eurodollars have little to do with the official currency of the European Union, the euro (EUR). In 1999, the euro was implemented ... Read Answer >>
  5. How does the Bureau of Labor Statistics define contingent workers?

    Discover how contingent workers are a significant part of the labor force and are defined as persons who do not expect their ... Read Answer >>
Trading Center