The Power of Unity: Labor Unions and the Fight for Workers’ Rights

In 1935, the landmark National Labor Relations Act (NLRA) was passed, greatly increasing the power of American workers. During and immediately after World War II, unions flourished, and income inequality fell to its lowest level since the Great Depression. By the late 1950s, however, structural changes in the labor market and labor laws began to erode union gains, transforming America. Workers reap significant benefits from unionization. Unions raise their members’ wages by 10 to 15 percent, improve fringe benefits, and enhance workplace procedures such as pension plans, grievance policies, and predictable scheduling. Importantly, the positive effects of unions extend beyond unionized workplaces. Other workers see wage increases and improved work practices as nonunion workplaces compete with unionized ones for workers.