What is the purpose of a labor union?

Having recently observed GM and Chrysler go through bankruptcy, and since many states are currently headed that way, with California and Illinois in the lead all driven there by the cost of union wages and benefits, I have to wonder what is the purpose of a labor union?

Unless the purpose of a labor union is to drive the organization employing its members bankrupt, I have to conclude that labor unions have failed miserably.

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