What Is a Union Shop Agreement?

A union shop agreement, also known as a union security agreement, is a clause added to a collective bargaining agreement. It must follow the standards in the National Labor Relations Act (NLRA) and is subject to regulation by the National Labor Relations Board.

Parties Involved

A union shop agreement is between a union and a company and requires any newly hired employees to join a union within a specified time period after being hired.

Nonunion Employees

If an employee chooses not to join the union after the specified time period, he is required under the union shop agreement to make payment to the union that is equivalent to union dues and initiation fees, but he can specify that none of his fees be used for political purposes.

Restrictions

The agreement cannot require management to hire existing union members, and it cannot require a new hire to join the union or pay fees if that conflicts with the employee's religious beliefs. However, the employee may be required to pay into a nonreligious, tax-exempt organization.

Time Frame

The NLRA requires a grace period of at least 30 days for general industries, seven days for the construction industry, before an employee is required to join the union or begin paying fees.

Exempt States

Right-to-work states prohibit union membership as a condition of employment, and union shop agreements are illegal in these states.

References

• International Brotherhood of Electric Workers

Resources

• National Right to Work Legal Defense Foundation: Right-to-Work States
• International Brotherhood of Electrical Workers: Right-to-Work Laws