New business concepts such as outsourcing and offshoring helped organizations to operate in a multicultural environment. In other words, employers started to deal with a much more diverse workforce because of globalization. The strategies needed to manage a diverse workforce are entirely different form the strategies needed to manage a workforce of single culture. Different employees may have different needs, especially when they operating in a multicultural environment. For example, Muslim employees always like to have a break for prayer during the mid-noon of every Friday. Same way Christian employees always like to have off on every Sundays. If the employers prevent them from taking such luxuries, they will develop dissatisfaction and their loyalty towards the management may come down. The needs of the employees are changing rapidly because of the advancements in living standards and the new challenges coming in front of them as the time goes on. For example, living expenses are growing day by day and it is difficult for an employee to find his livelihood if the employer is not ready to increase his salary. Same way, workloads are increasing day by day and as a result of that employees are not getting enough time for leisure activities. Work-life balancing is an important aspect of labor relations. If the employees struggle to find enough time to spend with their relatives and friends, their mental health could be damaged. Even if the employees get higher salaries for their extra work loads, they may not be satisfied if they fail to get time to spend with their beloved ones. Physical needs as well as psychological needs of the employees are important in maintaining better labor relations by the employers. American labor unions, taken… Unions and labor relations Trade unions are organizations to protect the interests of the working class. In other words trade unions always work for the betterment of the whole employees rather than the betterment of any individual employees. However, in some particular situations trade unions may work for the individual interests also. For example, if an employee was fired unnecessarily by the employer, trade unions may come for the rescue of that employee. The labor relation process includes recognition of the legitimate right and responsibilities of union and management. Better Employee-employer relations or labor relations is important for the smooth functioning of an organization In a troubled organization, employees may not deliver their bests and as a result of that the productivity and the efficiency of the organization may come down. This paper analyses the effect of changes in employee relations strategies, policies, and practices on organizational performance and the relevance of trade unions in America at present. Trade unions are organizations which argue for the rights of the workers and better labor relations from the employers. Current workplaces consist of extremely diverse workforce and the needs of the diverse employees could be different. Employers should help employees to meet their physical as well as mental needs in order to maintain better labor relations. Trade unions are losing grounds in America at present because of the better treatment American employees receive from their employers.