Open Shop

Posted in Human Resources Terms, Total Reads: 1181

Definition: Open Shop

Open shop can be understood as the establishment in which the retention payroll and eligibility criteria of the employment are not decided by the membership or non-membership in any labor union, though there may be a labor union which would act as a recognized bargaining unit as per the agreement.

This can be more simply understood as a firm that does not restrict its employees to be a member in any of the unions as a condition of employment or continued employment, however they might be a union that would be associated with same industry which be recognized as the legal bargaining unit. Open shops are also known as the merit shops. The biggest difference between the open shop and the closed shop is the condition of the union membership. Open shops have variety of opinions about the benefits attached with the open shop as well as its demerits.

Unions in the United States of America had argued against the open shops embraced by the employers during the 20th century, considering it as an attempt to throw the unions out of the industry. The labor laws of the United States of America outlaws the open shops, it restricts the employers of private sector from refusing to hire an employee who is a member of any American union in a similar way as it prohibits the employers to discriminate between the employees who do not wish to join any of the unions. The open shops are also the legal norms in those kinds of states which have the right to work laws for each of their citizens. In such type of cases, the employers are restricted or barred from union security enforcement arrangements and are not supposed to fire an employee who has failed to pay the union dues.


Hence, this concludes the definition of Open Shop along with its overview.

Browse the definition and meaning of more terms similar to Open Shop. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on Linkedin