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The UGTA stands for Union Generale des Travailleurs Algeriens (Algerian labour union).
The FLN decided to create the UGTA together with other organisations to stregthen the revolution and make everyone feel concerned about it. This also allowed the FLN to have control and influence in the civil society (among workers, students, women, etc.) and unite them under its banner. This move gave the workers a political consciousness and made them struggle for social but also political goals.
And following the FLN strategy, the UGTA joined the International Confederation of Free Trade Unions which helped internationalize the Algerian case.
This had many positive effects which pushed the French to try everything to stop them. This included intimidation of members, imprisonment of leaders and went down to the assassination of the founder of the UGTA, Aissat Idir (I will post his biography on due time
).On the strictly militant aspect, the UGTA united the Algerian workers in Algeria and in France, made their donations to the FLN/ALN possible and also organised the different strikes which were so important in the FLN strategy.
This strategy proved its efficiency and many tried to copy it (for e.g. FIS in the early 90s with its labour union, etc.).
In my opinion, today, the UGTA is unfortunately used by the government (system) as just another tool to rule on the working class. Its present president Sidi Said is a puppet in the hands of the government, and does no longer defend the interests of the workers. This led to the creation of many small independent unions which in majority are not acknowledged by the government. The UGTA lost its soul in my opinion.
A longer description of the UGTA history can be found here
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