In agency shops, non-union workers pay a fee to compensate the union for representing their interests. This practice is not legal in some regions, where a “fair sharing arrangement” is used instead. Agency shops allow employees to choose whether to join a union, but some unions believe it undermines their strength. Union membership comes with dues and benefits, but may not be worthwhile for short-term employees.
An agency is a workplace where both union and non-union workers may be present, and non-union workers are required to pay a fee to compensate the union for representing their interests. The assumption is that in workplaces where a union is active, people who are not union members receive benefits and could be considered freeloaders if they fail to provide compensation to the union. The fees paid by non-unionized employees are known as agency commissions and are set by the union during collective bargaining with the employer.
Not all regions allow agency shops. In countries where this practice is not legal, workplaces can circumvent the law by adopting what is known as a “fair sharing arrangement”. This arrangement is similar to the commissions set at an agency, but is more limited in scope. Like the agency fee, it is designed to charge nonunion employees to pay for collective bargaining and other union action that provides benefits.
Some workplaces favor the agency store model because it theoretically allows employees to choose whether they want to join a union, as opposed to a closed store, where everyone must unionize in order to work. Employers argue that it is not fair to force people to join a union to look for work. If the alternative is not unionization or fierce discussions about unionization, unions may accept an agency as a compromise. It allows them to advocate for workers without essentially paying for non-unionized workers.
Labor law is complex, and the laws surrounding the roles of unions in the workplace can get quite byzantine, depending on the country. The law allows for many different blends of union and non-union workers with the goal of allowing workers more freedom and self-determination. Some unions believe that these laws undermine the union’s strength, as the power of unions lies in representing as many employees as possible.
Agency workers will be offered the opportunity to join the union if they wish. Employees may want to carefully weigh the costs and benefits. Union membership comes with dues, but it also brings increased employee benefits and can contribute to union influence when it comes to negotiating for workers. On the other hand, people who work for a short period of time may not receive sufficient benefits from union membership to make the membership expense worthwhile.
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