Living in company towns made union membership more difficult for workers because company stores did not sell goods to workers who joined unions. Company towns had all shops and houses belonging to one organization with the largest group of employees in a given area. Labour unions gave room for employees to come together and improve their working conditions by doing collective bargaining. However, union workers would not purchase items since companies didn’t get benefit from selling them to persons in a union.
Working sites were situated in remote regions that were far from other towns, particularly without other companies in the neighbourhood. For that reason, workers were forced to leave labour unions and live in these company towns.