Trade union

A union (labor union in American English; trade union in British English and Australian English; either labour union or trade union in Canadian English) is an organisation formed by workers. Most typically, a single union will represent workers in a particular industry (industrial unionism) or craft (craft unionism), within all or part of a country. Unions are often divided into "locals" and united in national federations. Typical examples, depending on the country, could be all the assembly workers for one employer, all the teachers in a local school district, or all the workers in a particular industry.

Shop types

Companies that employ workers with a union generally operate on one of several models:

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• A closed shop (US) employs only people who are already union members. The compulsory hiring hall is the most extreme example of a closed shop - in this case the employer must recruit directly from the union.
• A union shop (US) or a closed shop (UK) employs non-union workers as well, but sets a time limit within which new employees must join a union.
• An agency shop requires non-union workers to pay a fee to the union for its services in negotiating their contract. This is sometimes called the Rand formula. In certain situations involving U.S. state government employees, for example California, fair share laws make it easy to require these sorts of payments.
• An open shop does not discriminate based on union membership in employing or keeping workers.