Employees and management often find themselves at odds. When workers perceive that their perspective on matters of safety or justice is being ignored, they might try to present a unified voice to management. Some workers have pursued this strategy by forming unions. When unions become a presence in an organization, human resource management must direct more attention to the interests of employees as a group. In general, employees and employers share the same interests. They both benefit when the organization is strong and growing, providing employees with jobs and employers with profits.

Although the interests of employers and employees overlap, they obviously are not identical. In the case of pay, workers benefit from higher pay, but high pay cuts into the organization’s profits, unless pay increases are associated with higher productivity or better customer service. Workers may negotiate differences with their employers individually, or they may form unions to negotiate on their behalf.

Labor unions are formed for the purpose of representing their members’ interests and resolving conflicts with employers. Some degree of conflict is inevitable between workers and management. Labor unions represent worker interests, and the collective bargaining process provides a way to manage the conflict. For management, the decision involves whether the organization will work with unions or develop (or maintain) nonunion operations. This decision is influenced by outside forces such as public opinion and competition.

Contract negotiations in a union setting involve decisions about pay structure, job security, work rules, workplace safety, and many other issues. These decisions affect workers’ and the employer’s situation for the term of the contract. Most national unions in the United States are affiliated with the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), an association that seeks to advance the interests of its members at the national level. Most national unions consist of multiple local units. Even when a national union negotiates the terms of a collective bargaining contract, negotiation occurs at the local level for work rules and other issues that are locally determined.