Final answer:
The correct option is A). Labor unions are organizations formed by workers to protect their collective interests, such as improved wages, working conditions, and benefits through collective bargaining and strikes.
Step-by-step explanation:
Labor unions are organizations of workers that come together to protect and promote the collective interests of their members. These interests typically include negotiating for better wages, working conditions, and various benefits. The primary activities of a labor union consist of collective bargaining with company management and organizing strikes or work stoppages to enforce their demands or showcase their grievances.
Examples of labor unions include the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO), the American Federation of Teachers, and United Auto Workers. They not only negotiate for better compensation and safer work environments but can also influence legislation to strengthen their position and support worker-friendly policies.
Labor unions historically have played a crucial role in securing labor reforms and acting as a counterbalance to employers' power by requiring that employees be dealt with as a group rather than individually. This collective representation enables unions to operate similarly to a monopoly within the labor market during negotiations, which we describe as collective bargaining.