Opinion of the Court
In a majority opinion by Justice Blackmun, the Court found that unions may compel contributions from nonmembers only for the costs of performing its duties as exclusive bargaining agent. The Court found largely for the Plaintiff, but also continued to uphold the compulsory "service fee" itself and affirmed some of the questioned uses of the "service fee." In general, freedom of speech rights are found to limit what "service fees" may be used for. The Court ruled that the majority of the "service fees" collected in this case were used unconstitutionally. Also, the court now requires unions to provide an audited accounting report of their "service fee" spending to fee-paying nonmembers.
This case provides broad clarification on the subject of required union fees in the public sector. It strikes down a previously used three-part test in favor of a more practical one-part test. This new test dictates that: "a union may constitutionally compel contributions from dissenting nonmembers in an agency shop only for the costs of performing the union's statutory duties as exclusive bargaining agent." However, much leeway and uncertainty still exists regarding the acceptable use of union "service fees" in the public sector.
Allowed uses of union "service fees"
The court found that "a union may constitutionally compel contributions from dissenting nonmembers in an agency shop only for the costs of performing the union's statutory duties as exclusive bargaining agent." These costs include:
- Expenses directly related to the collective bargaining process.
- "Program expenditures" of the national union, even those destined for other states.
- Certain sections of the state union’s newsletter. These sections must deal directly with collective bargaining, professional development, education, unemployment, and other non-political topics which "benefit all."
- Participation by the local delegates in the state and national conventions which are likely to have some benefit to collective bargaining.
- All expenses associated with preparation for, and negotiation of strikes.
Illegal uses of union "service fees"
The court also found that "certain other of the union activities at issue may not constitutionally be supported through objecting employees' funds." These disallowed costs include:
- Lobbying, electoral, or other union political activities outside the scope of contract negotiations, which "would compel dissenters to engage in core political speech with which they disagree."
- Union activities which serve to secure state, local, or national funds for education and sections of the newsletter which report on these issues.
- Litigation which does not directly relate to the collective bargaining process and union literature which reports on this.
- Public relations efforts which seek to enhance the reputation of the teaching profession and expenses related to information picketing, media exposure, signs, posters, and buttons.
Rationale
The following cases were cited in the majority opinion:
- Machinists v. Street (1961), states that "a union may constitutionally compel contributions from dissenting nonmembers in an agency shop only for the costs of performing the union's statutory duties as exclusive bargaining agent."
- Abood v. Detroit Board of Education (1977), upholds the constitutionality of compulsory "service fees" for collective bargaining services.
- Ellis v. Railway Clerks (1984), allows local unions to support their national affiliates through nonmembers "service fees" since they often provide support to the bargaining table in a variety of ways both direct and indirect. However, this case does not allow free spending by the unions but limits it somewhat.
In the context of labor law in the United States, the term right-to-work laws refers to state laws that prohibit union security agreements between employers and labor unions. Such agreements can be incorporated into union contracts to require employees who are not union members to contribute to the costs of union representation. Unlike the right to work definition as a human right in international law, U.S. right-to-work laws do not aim to provide a general guarantee of employment to people seeking work but rather guarantee an employee's right to refrain from being a member of a labor union.
A union security agreement is a contractual agreement, usually part of a union collective bargaining agreement, in which an employer and a trade or labor union agree on the extent to which the union may compel employees to join the union, and/or whether the employer will collect dues, fees, and assessments on behalf of the union.
United States labor law sets the rights and duties for employees, labor unions, and employers in the US. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "organized in the corporate or other forms of ownership association". Over the 20th century, federal law created minimum social and economic rights, and encouraged state laws to go beyond the minimum to favor employees. The Fair Labor Standards Act of 1938 requires a federal minimum wage, currently $7.25 but higher in 29 states and D.C., and discourages working weeks over 40 hours through time-and-a-half overtime pay. There are no federal laws, and few state laws, requiring paid holidays or paid family leave. The Family and Medical Leave Act of 1993 creates a limited right to 12 weeks of unpaid leave in larger employers. There is no automatic right to an occupational pension beyond federally guaranteed Social Security, but the Employee Retirement Income Security Act of 1974 requires standards of prudent management and good governance if employers agree to provide pensions, health plans or other benefits. The Occupational Safety and Health Act of 1970 requires employees have a safe system of work.
Proposition 75 was a ballot proposition in the California special election, 2005.
Financial Core refers to a legal carve-out that permits workers opposed to participating in a labor union to be employed under the benefits of a union's contracts without compelling them to be a member of that union.
Canadian labour law is that body of law which regulates the rights, restrictions, and obligations of trade unions, workers, and employers in Canada.
Reference Re Public Service Employee Relations Act (Alta) [1987] 1 S.C.R. 313, commonly referred to as the Alberta Reference, was a leading opinion of the Supreme Court of Canada on the right to freedom of association under section 2(d) of the Canadian Charter of Rights and Freedoms. The Court held that section 2(d) did not include the right to strike. In 2015, Alberta Reference was overruled, with the Court recognizing a right to strike in the Charter.
The National Right to Work Legal Defense Foundation, established in 1968, is a nonprofit organization that seeks to advance right-to-work laws in the United States.
Davenport v. Washington Education Association, 551 U.S. 177 (2007), is a ruling by the Supreme Court of the United States in which the Court held that it does not violate the First Amendment for a state to require its public-sector unions to receive affirmative authorization from a non-member before spending that nonmember's agency fees for election-related purposes.
Keller v. State Bar of California, 496 U.S. 1 (1990), was a case in which the Supreme Court of the United States held that attorneys who are required to be members of a state bar association have a First Amendment right to refrain from subsidizing the organization’s political or ideological activities.
International Association of Machinists v. Street, 367 U.S. 740 (1961), was a United States labor law decision by the United States Supreme Court on labor union freedom to make collective agreements with employers to enroll workers in union membership, or collect fees for the service of collective bargaining.
Locke v. Karass, 555 U.S. 207 (2009), is a court case in which the Supreme Court of the United States held that the Constitution permits the local chapter of a labor union to charge a "service fee" to non-members to cover non-local litigation expenses if (a) the expenses are "appropriately related to collective bargaining" and (b) there is a reciprocal relationship between the local chapter and the national union. The case expanded on and clarified the earlier Lehnert v. Ferris Faculty Association, which permitted such service fees for non-political activities but did not reach a consensus on whether "national" expenses were chargeable.
Communications Workers of America v. Beck, 487 U.S. 735 (1988), is a decision by the United States Supreme Court which held that, in a union security agreement, unions are authorized by statute to collect from non-members only those fees and dues necessary to perform its duties as a collective bargaining representative. The rights identified by the Court in Communications Workers of America v. Beck have since come to be known as "Beck rights", and defining what Beck rights are and how a union must fulfill its duties regarding them is an active area of modern United States labor law.
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Abood v. Detroit Board of Education, 431 U.S. 209 (1977), was a US labor law case where the United States Supreme Court upheld the maintaining of a union shop in a public workplace. Public school teachers in Detroit had sought to overturn the requirement that they pay fees equivalent to union dues on the grounds that they opposed public sector collective bargaining and objected to the political activities of the union. In a unanimous decision, the Court affirmed that the union shop, legal in the private sector, is also legal in the public sector. They found that non-members may be assessed agency fees to recover the costs of "collective bargaining, contract administration, and grievance adjustment purposes" while insisting that objectors to union membership or policy may not have their dues used for other ideological or political purposes.
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Knox v. Service Employees International Union, 567 U.S. 298 (2012), is a United States constitutional law case. The United States Supreme Court held in a 7–2 decision that Dianne Knox and other non-members of the Service Employees International Union did not receive the required notice of a $12 million assessment the union charged them to raise money for the union's political fund. In a tighter 5–4 ruling, the court further held that the long-standing precedent, the First Amendment requirement that non-union members covered by union contracts be given the chance to "opt out" of special fees was insufficient. Setting new precedent, the majority ruled that non-members shall be sent notice giving them the option to opt into special fees.
Albany International BV v Stichting Bedrijfspensioenfonds Textielindustrie (1999) C-67/96 is an EU law case, concerning the boundary between European labour law and European competition law in the European Union.
Janus v. American Federation of State, County, and Municipal Employees, Council 31, No. 16-1466, 585 U.S. ___ (2018), abbreviated Janus v. AFSCME, is a landmark decision of the US Supreme Court on US labor law, concerning the power of labor unions to collect fees from non-union members. Under the Taft–Hartley Act of 1947, which applies to the private sector, union security agreements can be allowed by state law. The Supreme Court ruled that such union fees in the public sector violate the First Amendment right to free speech, overruling the 1977 decision in Abood v. Detroit Board of Education that had previously allowed such fees.
