What is a company union?

A company union refers to a union that is established and financially supported by an employer. This type of union is typically created to represent workers' interests but is often viewed skeptically, as it may lack true independence from the management. By receiving financial support and potentially direction from the employer, company unions can lead to a conflict of interest, where the union might prioritize the employer's requirements over the employees' rights and needs.

In many labor relations contexts, company unions are considered less legitimate than independent unions, which operate free from employer influence. These independent unions often have greater credibility among workers as they are solely focused on advocating for employees' rights and benefits without the potential compromise that can arise from employer involvement.