Definition of Closed Shop Agreement

A closed shop agreement is a contractual agreement between an employer and a labor union, whereby the employer agrees to hire only union members and the employees in turn must maintain their union membership throughout their employment with the company. This type of agreement is also commonly referred to as a union shop.

The purpose of a closed shop agreement is to increase the bargaining power of the union and provide job security for union members. The agreement prevents non-union workers from being hired, which ensures that the union has more control over the workplace. In addition, it is believed that this type of agreement can prevent employees from crossing picket lines during strikes, as they are required to maintain union membership in order to keep their job.

Closed shop agreements were once widely used in the United States, particularly in the manufacturing industry. However, they were largely prohibited by the Taft-Hartley Act of 1947. This act made it illegal for employers to require union membership as a condition of employment, with some exceptions.

Today, closed shop agreements are only legal in certain states that have “right-to-work” laws. These laws prohibit agreements between employers and unions that require union membership as a condition of employment. Currently, 27 states have right-to-work laws in place.

It is important to note that closed shop agreements are different from union security agreements. In union security agreements, employees are not required to be members of the union but must pay union dues or an equivalent fee as a condition of employment. This type of agreement is still legal in many states.

In conclusion, a closed shop agreement is a contract between an employer and a labor union that requires the employer to hire only union members and employees to maintain their union membership. While once common in the United States, they are now illegal in many states. However, union security agreements that require payment of union dues or fees as a condition of employment are still legal in many states.