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Item Labor union activities and its challenges in Addis Ababa yarn share company(A.A.U, 2008-06) Barekew, Mesay; Murtiiy, Krishina (prof)The Labor unions usually defiled as associations of Workers who by means of collective Bargaining and endeavor to improve their working condilions, economic and societal Posilion. This shows that unions to shore Benefils Mainly frome Organizations' such as Profits. But when organizalions operate in loss, undergone major Strurctural changes and on Process of Privalizalion the main duty of labor unions will be changed. To assess Lubor union aclivilies and challenges in Ethiopian public Enterprises, in which most of them are operating in loss mainly in textile and yarn Enlerprises, Addis Abeba yarn share company basic labor union was selecled based on preliminary Assessmentl, The study used document review, inlerview and questionnaire as main of data collection. After deep analysis the sludy idenlified the union is building its Financial capacity by involving in commercial activities. This activity helped to Plan for its members for long run benefits and survival by Saving Ihe Company And Its Membersfi'om 10lal/Ailure, Instead 0/ Seeking Benefits Through Collective Bargaining The Union Gives Away Ihe Rights 0/ Ifs Members To Ihe Organizalion 10 Save Ihe Company. The Main Challenges O/Ihe Union Being The Poor Pelformance 0/ The Company And Less Qualified And Old Aged Members, The Union Strives To Cope Up With The Challenges, The Study Will Benefils Other Public Enterprise Labor Unions To Cope Lip With Challenges(Aced By Labor Iinions And Benefit Their Members In Long And Short Run,