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.<ref name="Pynes">Pynes, Joan. Human Resources Management for Public and Nonprofit Organizations. 2d ed. Hoboken, N.J.: John Wiley and Sons, 2004. Template:ISBNTemplate:Page needed</ref> However, the non-union worker must pay a fee to cover collective bargaining costs.<ref name="Pynes" /> The fee paid by non-union members under the agency shop is known as the "agency fee".<ref name="Guerin">Guerin, Lisa and DelPo, Amy. The Manager's Legal Handbook. Rev. 4th ed. Berkeley, Calif.: Nolo, 2007. Template:ISBNTemplate:Page needed; Template:Cite journal</ref><ref name="Mauer">Template:Cite book</ref>
Where the agency shop is illegal, as is common in labor law governing American public sector unions, a "fair share provision" may be agreed to by the union and the employer.<ref name="Guerin" /><ref name="Mauer" /> The provision requires non-union employees to pay a "fair share fee" to cover the costs of the union's collective bargaining activities. The "fair share" is similar to the agency shop, but usually more restrictive as to what may be charged to the non-member.Template:Clarify<ref name="Guerin" /><ref name="Mauer" /> In Canada, the agency fee is usually known as the Rand formula.<ref>McMenemy, John. The Language of Canadian Politics: A Guide to Important Terms and Concepts. Rev. ed. Waterloo, Ontario, Canada: Wilfrid Laurier University Press, 1995. Template:ISBNTemplate:Page needed</ref> In the United States, compelling payment of agency fees from non-union employees in the public sector was held unconstitutional in Janus v. AFSCME, in June 2018. Rehmus and Kerner (1980) found that at the time, unions within the public sector had been experimenting with the use of agency shop. It was discovered that by the mid-1970s, "13 percent of state and local government agreements then contained agency shop provisions". Additionally, contemporary scholars had discussed about the controversial nature of "free riders" in that their elimination (by the use of agency shop) would bring about a more harmonious environment within the work force, thus leading to improved "labor-management relationships".<ref name=RehmusKerner1980>Rehmus, C. M. & Kerner, B. A. (1980). “The Agency Shop after Abood: No Free Ride, but What’s the Fare?” Industrial and Labor Relations Review, 34(1), 90–100. doi:10.1177/001979398003400107</ref>
International Labour Organization covenants do not address the legality of agency fee provisions, leaving the question up to each individual nation.<ref>"Case(s) No(s). 188, Report No. 34 (Denmark): Complaints against the Government of Denmark presented by Swiss Printing Workers' Union and the Swiss Federation of National Christian Trade Unions". Template:Webarchive Document No. 031960034188. Cases of the Committee on Freedom of Association. International Labor Organization. March 4, 1959.</ref> The legal status of agency shop agreements varies widely from country to country, ranging from bans on the agreement to extensive regulation of the agreement to not mentioning it at all.