Organized labor entered a three-sided arrangement with government and business that allowed union membership to soar to unprecedented levels.

This arrangement, often referred to as the "social contract" or "tripartite agreement" in various countries, particularly during the mid-20th century, facilitated a cooperative relationship between labor (unions), government, and business. This led to significant growth in union membership as labor laws were enacted and policies implemented that supported collective bargaining, labor rights, and benefits, contributing to the rise of the middle class and improved working conditions.