Employee Experience Show
Last Updated: December 2, 2020 | Read Time: 7 min A union shop is a place of employment that requires its employees to join a union. At these companies, employees are required to belong to or pay dues to the union as a condition of retaining employment. Union shops are permitted only in states that have not passed “right-to-work” laws prohibiting practices that force employees to join or pay dues or fees to a labor union. The incoming Biden administration promises to strengthen union rights, incentivize unionization and encourage collective bargaining. Whether these reforms make it to reality is up for debate, but all employers need to understand the potential implications. What’s the Difference between Closed Shop, Union Shop, Open Shop, Agency Shop and Right-to-Work?
The states that have enacted right-to-work laws are:
Are Labor Unions Good or Bad for Employers?The answer is complicated. At the core, unions are solely focused on negotiating the best wages & benefits for their members and employers just want high productivity from their workers. It turns out these goals aren’t always at odds with each other. Labor unions bring certain advantages and disadvantages to a company. Let’s break down the pros and cons. Pros of Union Shops:
Cons of Union Shops:
Collective Bargaining Agreements and the Union ShopA Collective Bargaining Agreement (CBA) sets the terms and conditions of employment in a union shop, such as:
Collective bargaining agreements run for a specified timeframe as outlined in the agreement. Unlike a regular contract, the parameters of the conditions don’t end upon the agreement’s expiration. As long as the majority of employees still support the union, union representatives and management are required to bargain in good faith for a new CBA. The terms of the expired CBA continue until a new one is reached. Manufacturers trust Paycor because we provide the technology + expertise to help them separate from the competition and overcome tough challenges like processing union payroll. Work with the experts. Making sure that hours worked, and vacation time taken are appropriately tracked is a necessary task for HR. But it’s even more important for companies that have a significant union labor presence. Don’t put your business at risk. Our time solution can track this data and use it to create quick and accurate reports as well as integrate with your payroll system making every payday a snap. What is it called when you don't have to join a union?Open Shop:Where employees do not have to belong to the union or pay dues to secure or retain employment in a company, even though there may be a collective bargaining agreement. The Union is obligated by law to represent members and non-members equally regardless of whether it is an open shop or a union shop.
Which of these is a benefit of union membership for an employee?Union members earn better pension benefits. Unionized workers are 60% more likely to have employer-provided pensions. Union members have better health insurance. More than 79% of union workers have jobs that provide health insurance benefits, but less than half of non-union workers do.
What are the benefits of non union?Lower Employee Costs
Unions enjoy discretion in determining the total amounts of fees and dues. These fees and dues typically come directly out of the employees' paychecks. By working in non-unionized workplaces, employees avoid the costs imposed by unions, potentially boosting their total take-home pay.
What does it mean to pay in union?Union dues are monthly contributions members make to the union based on their working status. By paying union dues, members pool their resources to ensure protection of the group as a whole and achieve fair wages and benefits, safe working conditions and representation.
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