Final answer:
The designation granted to a labor union by the federal government as the exclusive representative of employees is called exclusive recognition. This ensures the union engages in collective bargaining for the workers. Forming a union in the U.S. usually involves a secret ballot election by the workers.
Step-by-step explanation:
The designation that indicates a union has been selected by employees to be the exclusive representative of a group of employees is known as exclusive recognition. Labor unions are important organizations that negotiate for workers collectively over wages and working conditions, thereby altering the balance of power between employers and workers. In the United States, forming a union typically involves an election where firm employees vote via a secret ballot. When a majority votes in favor, the union emerges as the exclusive representative, engaging in collective bargaining on behalf of the employees. This system is in contrast to that of Canada, where the process is card-based rather than election-based.
Unions play a role similar to a monopoly in the labor market, engaging in collective bargaining to secure better compensation, benefits, and conditions for their members. American union membership, however, has seen a decline over the years due to various factors such as shifts to service industries, increased global competition, worker-friendly legislation, and laws less favorable to union organizing. The essence of the power of unions, and the process of forming one, revolves around the idea of bilateral monopoly in the labor negotiations landscape.