agency shop clause |
Definition
Provision in a collective bargaining agreement that all employees of the firm (whether or not members of the union) pay a fixed monthly sum to the union as a condition of employment. This arrangement (where it is legal) serves as a compromise between the union's objective to eliminate free riders, and management's objective to make union membership a voluntary decision of each employee.
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agency shop clause is in the Corporate, Commercial, & General Law, HR, Teams, & Training and Negotiating & Conflict Resolution subjects.
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