Union transparency is important for two reasons. First, transparency enables workers to make more informed decisions about their preference for collective representation. Second, transparency leads to and is essential for accountability. Disclosing financial information publicly allows workers and interested parties alike to determine the appropriateness, effectiveness, and efficacy of union spending.In 2005, labour relations laws regulated 32.0 percent of workforce in Canada and 13.7 percent of workers in the United States. Numerous studies have examined aspects of labour relations laws, such as certification, decertification, and union security laws, and their effects on the labour market. However, very few have focused on union disclosure requirements.

Disclosure laws regulate the quality and quantity of financial information that affected organizations must make public. Public disclosure of this information allows interested parties to guage the financial health and performance of organizations. In addition, the accordant transparency that comes from disclosure serves to improve the governance of organizations.

Union transparency is important for two reasons. First, transparency enables workers to make more informed decisions about their preference for collective representation. Second, transparency leads to and is essential for accountability. Disclosing financial information publicly allows workers and interested parties alike to determine the appropriateness, effectiveness, and efficacy of union spending.