Dan is a non-union employee at Lexia Inc. Although he does not intend to join the union at the company, he is still required to pay union dues as part of a union contract with the company. What does this scenario best exemplify?

A) an agency shop agreement
B) a checkoff provision
C) a union shop agreement
D) a trade-off provision
E) a closed shop agreement

Question

Marianette López · Accepted Answer

Final Answer : A, Explanation :  In an agency shop agreement, non-union employees are required to pay union dues or fees as a condition of their employment, even though they are not members of the union. This is because the union has been granted the exclusive right to represent all employees, including non-union members, in collective bargaining and other employment-related matters. This is different from a union shop agreement, where all employees must become union members within a certain period of time after being hired, and a closed shop agreement, where only union members can be hired. A checkoff provision is a contractual agreement between an employer and a union, which allows the employer to deduct union dues or fees directly from employees' paychecks and remit them to the union. A trade-off provision is not a recognized term in labor relations.

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