Employers' organization

An employers' organization or employers' association is a collective organization of manufacturers, retailers, or other employers of wage labor. Employers' organizations seek to coordinate the behavior of their member companies during negotiations with trade unions or government bodies.

History

Capitalism is based upon a theoretical model in which individual commercial entities compete with one another in an attempt to gain advantage in the generation of profits. This rivalry between competitors naturally tends to preclude combined action for the advancement of common interests. The emergence of trade unions and their efforts to establish collective bargaining agreements on a local or an industry-wide level ultimately paved the way for combined action by competitors employing such labor in common.

The collective entities established by commercial enterprises acting in concert on such matters are known variously as employers' organizations or employers' associations.

Historically, employers' associations were of two general types: those consisting only of employers in a single trade or industry, or those bringing together employers from across a broad spectrum of industries on a local, regional, or national basis.