Union Security Agreement - Definition & Meaning
What is Union Security Agreement?
Union Security Agreement is a contract that is signed between the employer and the trade or labour union. It is a legally abiding document that is a part of the collective bargaining agreement. Herein the limit or extent is decided upto which the Union will influence new members to join its wing. In many cases the employer collects membership fees on behalf of the union.
Labour Unions have the weapon of collective bargaining. This weapon is viewed by the management as a threat and an impediment to the free decision making of the organisation. The trade unions try to expand their influence by increasing the number of members.
The management desires to control the influence of these labour and trade unions. One of the ways is the Union Security Agreement.
Various types of Union Agreements
a. Closed Shop - All the employees are union members. If an employee leaves the union, then he is fired from the work place well.
b. Union Shop - The employee is hired irrespective of his union membership status. But he has to join the Union with in a stipulated time frame. For example - 30 days. If an employee leaves the union, then he is fired from the work place well.
c. Agency Shop - The employee is hired irrespective of his union membership status and there is no pressure on him to join the union either. But he has to pay a fees to the Trade or Labour Union. This fee is called the agency fee and is used to cover the collective bargaining costs. If an employee leaves the union, then he is not fired from the work place well.
d. Fair Share Provision - It is used mostly in public sector units wherein the agency fee is outlawed. But this is identical to the agency fees only. The employee is hired irrespective of his union membership status and there is no pressure on him to join the union either. But he has to pay a fees to the Trade or Labour Union. This fee is called the 'fair share fee' and is used to cover the collective bargaining costs. If an employee leaves the union, then he is not fired from the work place well.
e. Dues Check off - In this situation the employer collects fees from the union member and non union members. This is a contract between the union and the employer. This fees is collected in form of dues or money and is directly deducted from the employees pay check and given to the Trade or Labour Union.
Hence, this concludes the definition of Union Security Agreement along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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