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A labor union represents workers in collective bargaining. In places without a union, each person must negotiate his own salary with management. No person has any idea what the others are getting. As a result, the management has the upper hand. A labor union negotiates the salaries for all the workers. As a result, all the workers have the advantage of someone else who is usually a better negotiator doing the negotiating on salary issues. As a result, union members usually make more money than non-union members. In trade unions, the workers are usually competent. A contractor can call up union hall and say, "I need 4 plasterers." Four men will show up who will know how to plaster. They will do a good job. They will make more money than four men hired off the street, but he does not need to waste time training them. The workers work for union wages. Again they do not bid for each job but the general contractor pays the union wage.

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Q: How does a labor union influence the wage rates of workers?
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