This paper analyzes the evolution of American unions’ attitudes and policies concerning employee ownership that coincided with the rapid growth of employee stock-ownership plans during the 1980s. From an initial position of opposing employee ownership and viewing it as a threat, many major unions have come to accept, and in some cases to promote, stock ownership for their members. Among the factors driving this change of view have been economic necessity, evidence that many of the labor movement’s traditional concerns about employee ownership are largely unfounded, and the growing realization among unions that employee ownership is a potentially useful strategic asset.