When it comes to labor relations, there are various types of employment agreements that employers and unions can agree upon. Two common types are closed shop agreements and agency shop agreements. Understanding the difference between these two agreements is important for both employers and employees.
Closed Shop Agreement
A closed shop agreement is a labor agreement that requires employers to hire only union workers as a condition of employment. In other words, employees must already be members of the union in order to work for the employer. The union is responsible for organizing and representing the workers in collective bargaining negotiations with the employer. All employees must pay union dues, and the union negotiates wages, benefits, and working conditions on behalf of its members.
Closed shop agreements were once common in the United States, but they were outlawed by the Taft-Hartley Act in 1947. Today, closed shop agreements are only legal in a few states, such as Hawaii and Montana.
Agency Shop Agreement
An agency shop agreement is a labor agreement that requires all employees to pay union dues, regardless of whether they are members of the union or not. This means that employees do not need to join the union in order to work for the employer, but they must pay union dues as a condition of employment. The union represents the employees in collective bargaining negotiations with the employer and negotiates wages, benefits, and working conditions on behalf of all employees.
Agency shop agreements are legal in most states, but some states have passed right-to-work laws, which prohibit agency shop agreements. These laws allow employees to work for an employer without paying union dues, even if they are covered by a union contract.
Key Differences
The key difference between closed shop agreements and agency shop agreements is that closed shop agreements require employees to be union members in order to work for the employer, while agency shop agreements only require employees to pay union dues. Closed shop agreements are illegal in most states, while agency shop agreements are legal in most states but may be prohibited by right-to-work laws.
In a closed shop agreement, the union is responsible for organizing and representing all employees, while in an agency shop agreement, the union represents all employees but does not necessarily organize them. With an agency shop agreement, the union may still need to hold an election to become the employees` bargaining representative, even if all employees are required to pay union dues.
Conclusion
In summary, closed shop agreements and agency shop agreements are two types of labor agreements that have different requirements for employees and the union. Closed shop agreements require employees to be union members, while agency shop agreements require all employees to pay union dues. Knowing the differences between these agreements is important for both employers and employees in order to understand their rights and obligations under the law.