Union label: Overview, definition, and example

What is a union label?

A union label is a symbol or mark placed on products that have been manufactured, produced, or processed by unionized workers under a union agreement. The label is used to show that the product was made by workers who are represented by a labor union, and it typically signifies that the workers received fair wages, benefits, and working conditions as negotiated by the union. The union label can be found on various types of products, from clothing to consumer goods, and serves as a sign of support for workers' rights and organized labor.

For example, the "Union Made" label on a pair of jeans indicates that the jeans were produced in a factory where the workers are members of a labor union.

Why is a union label important?

A union label is important because it allows consumers to make informed purchasing decisions, supporting businesses and products that align with their values of fair labor practices, workers' rights, and ethical manufacturing. For workers, the union label represents a recognition of their work conditions and benefits secured through collective bargaining. It can also serve as a tool to help promote unionized industries and ensure that workers are treated fairly.

For businesses, using a union label can demonstrate a commitment to ethical practices and labor rights, attracting customers who prioritize these values. However, companies that do not use union labor might avoid using union labels to sidestep the costs or obligations associated with unionized labor.

Understanding the union label through an example

Imagine a consumer looking to purchase a new winter coat. The consumer prefers to support products made under fair working conditions and chooses to buy a coat that features a union label. The label indicates that the coat was made in a factory where workers are unionized and benefit from union-negotiated wages and working conditions. This makes the consumer confident that their purchase supports both quality craftsmanship and fair labor practices.

In another example, a manufacturer might add a union label to the products they produce to highlight their commitment to workers' rights. For instance, a furniture company with a unionized workforce may place the union label on its chairs and tables to advertise that they are made by union labor.

An example of a union label clause

Here’s how a union label clause might appear in a collective bargaining agreement or marketing materials:

“The Manufacturer agrees that all products produced in this facility will carry the Union Label, signifying that they are made by workers represented by the United Workers Union, in accordance with the terms of this Agreement.”

Conclusion

A union label is a symbol of fair labor practices and ethical production, allowing consumers to support businesses that provide workers with fair wages, benefits, and safe working conditions. For businesses, it offers a way to market their products as union-made and gain the support of consumers who prioritize these values.

For SMB owner-managers, understanding the significance of union labels and considering whether to incorporate unionized labor into their operations can help align their business practices with the values of ethical labor and worker rights.


This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.