Agency shop
Encyclopedia
An agency shop is a form of union security agreement where the employer may hire union
or non-union workers, and employees need not join the union in order to remain employed. However, the non-union worker must pay a fee to cover collective bargaining costs. The fee paid by non-union members under the agency shop is known as the "agency fee."
Where the agency shop is illegal, as is common in labor law governing American
public sector
unions, a "fair share provision" may be agreed to by the union and the employer. The provision requires non-union employees a pay "fair share fee" to cover the costs of the union's collective bargaining activities. The "fair share" is similar to the agency shop, but usually more restrictive as to what may be charged to the non-member. In Canada, the agency fee is usually known as the Rand formula
.
International Labour Organization
covenants do not address the legality of agency fee provisions, leaving the question up to each individual nation. The legal status of agency shop agreements varies widely from country to country, ranging from bans on the agreement to extensive regulation of the agreement to not mentioning it at all.
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
or non-union workers, and employees need not join the union in order to remain employed. However, the non-union worker must pay a fee to cover collective bargaining costs. The fee paid by non-union members under the agency shop is known as the "agency fee."
Where the agency shop is illegal, as is common in labor law governing American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
unions, a "fair share provision" may be agreed to by the union and the employer. The provision requires non-union employees a pay "fair share fee" to cover the costs of the union's collective bargaining activities. The "fair share" is similar to the agency shop, but usually more restrictive as to what may be charged to the non-member. In Canada, the agency fee is usually known as the Rand formula
Rand formula
In Canadian labour law, the Rand formula is a workplace situation where the payment of trade union dues is mandatory regardless of the worker's union status...
.
International Labour Organization
International Labour Organization
The International Labour Organization is a specialized agency of the United Nations that deals with labour issues pertaining to international labour standards. Its headquarters are in Geneva, Switzerland. Its secretariat — the people who are employed by it throughout the world — is known as the...
covenants do not address the legality of agency fee provisions, leaving the question up to each individual nation. The legal status of agency shop agreements varies widely from country to country, ranging from bans on the agreement to extensive regulation of the agreement to not mentioning it at all.