Employers must continue to deduct union dues directly from employees' paychecks and remit them to the union each month even after the expiration of a collective bargaining agreement (CBA), the National Labor Relations Board (NLRB) recently decided.
"For the third time in seven years, the board has again changed the law" on this topic, said Allison Anderson, an attorney with Foley Hoag in Boston. "This may not be the final word. Given recent history, the law may change yet again the next time there is a Republican-appointed board."
That said, for now, the recent decision "will take away one of the tools employers have in labor agreement negotiations to leverage an agreement once negotiations stall," stated David Pryzbylski, an attorney with Barnes & Thornburg in Indianapolis.
Under prior precedent, when a union was unwilling to agree to terms acceptable to a company, once a CBA expired, a company could cease deductions of dues until a new agreement was reached, he noted. "This oftentimes incentivized a union to get to the table and reach a deal," Pryzbylski said.
'Dues Checkoff Provisions' for Decades Expired with CBA
So-called dues checkoff provisions—common provisions in CBAs that state that an employer will deduct union dues each month from paychecks—are unions' primary revenue source, Pryzbylski stated.
The dues checkoff provisions "don't cease until if and when a union and employer agree to eliminate or modify the clause, which almost never happens in light of the...
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