Open-shop
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An open shop is a place of
employment Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...
at which one is not required to join or financially support a
union Union commonly refers to: * Trade union, an organization of workers * Union (set theory), in mathematics, a fundamental operation on sets Union may also refer to: Arts and entertainment Music * Union (band), an American rock group ** ''Un ...
(
closed shop A pre-entry closed shop (or simply closed shop) is a form of union security agreement under which the employer agrees to hire union members only, and employees must remain members of the union at all times to remain employed. This is different fro ...
) as a condition of hiring or continued employment.


Open shop vs closed shop

The major difference between an open and closed shop is the requirement for union membership.Pynes, Joan. ''Human Resources Management for Public and Nonprofit Organizations.'' 2d ed. Hoboken, N.J.: John Wiley and Sons, 2004. There are a variety of opinions regarding the benefits and negatives of open shops.


Pros vs. cons of open shops

In the United States, the introduction of 'right to work' laws has been linked with lower overall benefits but higher economic growth by some proponents. Such conclusions are debatable, however, as employment, investment, and income in traditionally unionized sectors of the economy cannot be correlated to passage of such laws.


Union arguments

''Open shop'' means a factory, office, or other business establishment in which a union, chosen by a majority of the employees, acts as representative of all the employees in making agreements with the employer, but in which union membership is not a condition of being hired. Unions have argued against the open shop adopted by
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
employers in the first decade of the twentieth century, seeing it as an attempt to drive unions out of industries. For example, construction
craft unions Craft unionism refers to a model of trade unionism in which workers are organised based on the particular craft or trade in which they work. It contrasts with industrial unionism, in which all workers in the same industry are organized into the sa ...
have always relied on controlling the supply of labor in particular trades and geographical areas as a means of maintaining union standards and establishing collective bargaining relations with the employers in that field. In order to do that, unions argued, construction unions—and to a lesser extent unions representing musicians, longshore workers, restaurant employees, and others who work on a transitory and relatively brief basis—must require that employers hire only their members. The open shop was also a key component of the American Plan introduced in the 1920s. In that era the open shop was directed not only at construction unions but also unions in mass production industries. Unions again felt that these proposed policies would give employers the opportunity to discriminate against union members in employment and would also lead to a steadfast opposition to collective bargaining of any sort.


Legal status

United States labour law outlaws the open shop in its extreme form: it prohibits private sector employers from refusing to hire employees because they are union members just as it prevents discrimination against employees who do not wish to join unions. The open shop in its milder form, in which the open shop represents only an employer's refusal to favor union members for employment, is legal. Although the
National Labor Relations Act The National Labor Relations Act of 1935, also known as the Wagner Act, is a foundational statute of United States labor law that guarantees the right of private sector employees to organize into trade unions, engage in collective bargaining, and ...
permits construction employers to enter into pre-hire agreements, in which they agree to draw their workforces from a pool of employees dispatched by the union, employers are under no legal compulsion to enter into such agreements. Non-union construction employers have also adopted the phrase "merit shop" to describe their operations. In many connotations, the terms are interchangeable, however it may be used differently by different sides of the open shop issue. The open shop is also the legal norm in those states that have adopted
right-to-work laws The right to work is the concept that people have a human right to work, or engage in productive employment, and should not be prevented from doing so. The right to work is enshrined in the Universal Declaration of Human Rights and recognized i ...
. In those cases, employers are barred from enforcing union security arrangements and may not fire an employee for failure to pay union dues.


Canada

The term open shop is also used similarly in
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
, mostly in reference to construction contractors that have at least a partially non-union workforce. Canadians enjoy the freedom to associate, guaranteed by the Charter of Rights and Freedoms, inherently including the right not to associate. In various
Canadian province Within the geographical areas of Canada, the ten provinces and three territories are sub-national administrative divisions under the jurisdiction of the Canadian Constitution. In the 1867 Canadian Confederation, three provinces of British North ...
s, certain 'open shop' organizations have formed. Many of these organizations claim that small contractors are not adequately protected by current labour legislation. As labour law is a provincial jurisdiction in Canada, the laws vary from province to province. However, there is some common ground. Despite opposition from open shop contractors, in Ontario, the Liberal government recently reinstituted the card-based certification system that was in place for most of the post-World War II period. Card-based certification was reinstated only for the construction industry. It allows workers to certify an exclusive bargaining agent on the basis of membership, sometimes known as "majority sign-up". Some observers claim that this system creates a risk of employees being misled by business agents. Others assert that it overcomes the natural advantage that employers in opposition to unionization have over their employees. Some of these associations permit construction contractors that are unionized to join. Several companies whose employees are represented by the
Christian Labour Association of Canada The Christian Labour Association of Canada (CLAC) is a labour union that represents companies in the construction, healthcare, and food industries. It was established in 1952 to represent workers on the basis of "Christian social principles". Th ...
or
CLAC The Christian Labour Association of Canada (CLAC) is a labour union that represents companies in the construction, healthcare, and food industries. It was established in 1952 to represent workers on the basis of "Christian social principles". Th ...
, a union with non-traditional rules of membership, are members of the association. CLAC's roots trace to the Christian labour movement in the Netherlands.


Janus v. AFSCME

''Janus v. American Federation of State, County, and Municipal Employees, Council 31'', US (2018) is a
US labor law United States labor law sets the rights and duties for employees, labor unions, and employers in the United States. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "org ...
case, concerning whether governments violate the
First Amendment First or 1st is the ordinal form of the number one (#1). First or 1st may also refer to: *World record, specifically the first instance of a particular achievement Arts and media Music * 1$T, American rapper, singer-songwriter, DJ, and rec ...
when they require their employees to pay fees to a union as a condition of employment. In February 2015,
Illinois Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolita ...
Republican Governor
Bruce Rauner Bruce Vincent Rauner (; born February 18, 1956) is an American businessman, philanthropist, and politician who served as the 42nd governor of Illinois from 2015 to 2019. Prior to his election, he was the chairman of R8 Capital Partners and chai ...
filed suit, claiming that
fair-share agreement A union security agreement is a contractual agreement, usually part of a union collective bargaining agreement, in which an employer and a trade or labor union agree on the extent to which the union may compel employees to join the union, and/or wh ...
s are unconstitutional and a violation of the
First Amendment First or 1st is the ordinal form of the number one (#1). First or 1st may also refer to: *World record, specifically the first instance of a particular achievement Arts and media Music * 1$T, American rapper, singer-songwriter, DJ, and rec ...
right to free speech. In March 2015, three government workers from Illinois represented by attorneys from the Illinois-based Liberty Justice Center and Virginia-based
National Right to Work Legal Defense Foundation National may refer to: Common uses * Nation or country ** Nationality – a ''national'' is a person who is subject to a nation, regardless of whether the person has full rights as a citizen Places in the United States * National, Maryland, ce ...
took legal action to intervene in the case. In May 2015, Rauner was dropped from the case, after a federal judge ruled that the governor did not have standing to bring such a suit, but the case proceeded under a new name, ''Janus v. AFSCME.'' The case is named after
Mark Janus ''Janus v. American Federation of State, County, and Municipal Employees, Council 31'', No. 16-1466, 585 U.S. ___ (2018), abbreviated ''Janus v. AFSCME'', was a landmark decision of the US Supreme Court on US labor law, concerning the power of la ...
, an Illinois child support specialist covered by a
collective bargaining agreement A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company (or with an ...
. Janus claimed that he should not need to pay fees to the
American Federation of State, County and Municipal Employees The American Federation of State, County and Municipal Employees (AFSCME) is the largest trade union of public employees in the United States. It represents 1.3 million public sector employees and retirees, including health care workers, correcti ...
because doing so constitutes paying for political speech with which Janus disagrees.https://ljc-assets.s3.amazonaws.com/2016/12/Rauner-v.-AFSCME-120-First-Amended-Complaint-2015.06.01.pdf This became permissible after a 1977 decision by the
US Supreme Court The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point of ...
in ''
Abood v. Detroit Board of Education ''Abood v. Detroit Board of Education'', 431 U.S. 209 (1977), was a US labor law case where the United States Supreme Court upheld the maintaining of a union shop in a public workplace. Public school teachers in Detroit had sought to overturn the ...
''. The outcome of the case was in favor of Janus and as such non-union members cannot be compelled to pay fees in accordance with a given fair-share agreement that is in place with respect to a union.


See also

*
Right-to-work law In the context of labor law in the United States, the term "right-to-work laws" refers to state laws that prohibit union security agreements between employers and labor unions which require employees who are not union members to contribute to ...
*
Employers Group Employers Group was founded as the Merchants and Manufacturers Association (M&M) in 1896 in California. It has become a worldwide organization advocating for employers and giving guidance about employment laws and regulations, professional developm ...
, former the Merchants and Manufacturers Association, fought for the open shop *
Agency shop 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.Pynes, Joan. ''Human Resources Management for Public and Nonprofit Organiz ...
*
Closed shop A pre-entry closed shop (or simply closed shop) is a form of union security agreement under which the employer agrees to hire union members only, and employees must remain members of the union at all times to remain employed. This is different fro ...
, the opposite of an 'open shop', where union membership is a requirement of employment


References

{{Organized labor, sp=ox Labor relations Criticism of trade unions