How do labour unions act as economic interest groups?

Labour unions function as economic interest groups by organizing workers to collectively pursue improvements in pay, benefits, and working conditions. As prominent economic interest groups, they aggregate the interests of their members to exert influence that individuals acting alone could not achieve.123

Their primary mechanism for achieving these goals is collective bargaining, through which they negotiate agreements with employers. By organizing workers across a specific craft or industry, unions aim to establish minimum pay rates and prevent workers from bidding against one another. When unions successfully organize a large portion of a labour market, they increase their bargaining power, often using their collective size and financial resources to apply economic pressure, such as strikes, to secure their objectives.4156

Beyond direct negotiations with employers, unions act as political interest groups by:
* Lobbying: Engaging with policymakers to secure favorable legislation or government funding.23
* Political Support: Providing financial contributions to election campaigns and mobilizing members for grassroots activities like canvassing and get-out-the-vote efforts.3
* Policy Influence: Representing the interests of their constituency to ensure public policy decisions reflect the needs of the workforce.23