With the establishment and perfection of the socialist market economy, there has been important changes for Chinese economic relationship and labor relationship. Just because both society economic system and enterprise management mode have changed, labor union faces a huge challenge. Labor union who led by Chinese Communist Party is the working class organization in China. During each historical period, labor union played an important role in maintaining political stability and promoting social progress. But one of labor union’s basic functions is protect laborers’ rights and benefits, which means labor union is on behalf of employees. However, labor union cannot maintain employees’ rights and benefits very well at many situations. Labor union also cannot protect itself, lacking of definite positioning. At this situation, labor union’s functions are restricted. In a word, under current labor relation, how to maintain itself and laborers’ rights and benefits are the most important topic during labor union’s development in China.In this paper, through interviewed with state-owned enterprises and conducted a questionnaire with employees, I analyzed the current status of labor union. I found some problems and obtained the conclusion. I also get improvement countermeasures according to these problems. Finally, according to the current status of labor union, I gave some advice to develop Chinese labor union in the future. Hope Chinese labor union can obtain higher achievement during the new period of leapfrog and transformation. Let employees’ rights and benefits can be protected well.