Rand
A “Rand Member” is an employee of a unionized environment that refuses to sign a union membership card, but still pay full union dues. Rand Members enjoy the basic rights and privileges awarded to unionized employees through their collective agreements, such as representation at grievance hearings, representation at arbitrations, and the right to participate in a strike vote. These members may not receive benefits such as voting in collective agreement ratification and may not participate in the election of the Executive or the direction of the union.
The Rand Formula came into being in the 1940s. A number of Unions were unable to collect union dues as the members refused to sign union cards authorizing the deductions. Judge Rand agreed with the Union and stipulated that anyone who “ enjoys the benefits of a collective agreement and works at a certified site must pay Union dues. ”This gives the legal authority to the employer to withhold the agreed upon dues.
The Rand Formula came into being in the 1940s. A number of Unions were unable to collect union dues as the members refused to sign union cards authorizing the deductions. Judge Rand agreed with the Union and stipulated that anyone who “ enjoys the benefits of a collective agreement and works at a certified site must pay Union dues. ”This gives the legal authority to the employer to withhold the agreed upon dues.
The Rand Formula A Quick Overview
The Rand Formula A Quick Overview
By David Schinbein, Member PSAC L05/2050
By David Schinbein, Member PSAC L05/2050
What the Rand Formula Is. (1)
What the Rand Formula Is. (1)
In simple terms, “the formula provides that the employer must deduct union dues from the wages of every employee, without the requirement that employees become and remain members of the union."
In simple terms, “the formula provides that the employer must deduct union dues from the wages of every employee, without the requirement that employees become and remain members of the union."
In Canadian labour law, the Rand formula (also referred to as automatic check-off) is a workplace situation where the payment of union dues is mandatory regardless of the worker's union status. This formula is designed to ensure that no employee will opt out of the union simply to avoid dues yet reap the benefits of collective bargaining, such as higher wages or health insurance.
In Canadian labour law, the Rand formula (also referred to as automatic check-off) is a workplace situation where the payment of union dues is mandatory regardless of the worker's union status. This formula is designed to ensure that no employee will opt out of the union simply to avoid dues yet reap the benefits of collective bargaining, such as higher wages or health insurance.
Supreme Court of Canada Justice Ivan Rand, the eponym of this law, introduced this formula in 1946 as an arbitration decision ending the Ford Strike of 1945 in Windsor, Ontario. The Canada Labour Code and the labour relations laws of a majority of provinces contain provisions requiring the Rand formula when certain conditions are met. In exchange, the union was required to renounce wildcat strikes—those that happen within the term of a collective agreement—and to discipline members who took part in them. Failure to abide meant the company could withhold dues collected.
Supreme Court of Canada Justice Ivan Rand, the eponym of this law, introduced this formula in 1946 as an arbitration decision ending the Ford Strike of 1945 in Windsor, Ontario. The Canada Labour Code and the labour relations laws of a majority of provinces contain provisions requiring the Rand formula when certain conditions are met. In exchange, the union was required to renounce wildcat strikes—those that happen within the term of a collective agreement—and to discipline members who took part in them. Failure to abide meant the company could withhold dues collected.
Today, most Canadian jurisdictions require mandatory dues check-off to be part of all collective agreements, or require that employers accept the demand if sought by the union (Manitoba, Quebec, Ontario, Saskatchewan, British Columbia, Newfoundland and Labrador and the federal jurisdiction). And in all other provinces, workers are free to negotiate the Rand Formula.
Today, most Canadian jurisdictions require mandatory dues check-off to be part of all collective agreements, or require that employers accept the demand if sought by the union (Manitoba, Quebec, Ontario, Saskatchewan, British Columbia, Newfoundland and Labrador and the federal jurisdiction). And in all other provinces, workers are free to negotiate the Rand Formula.
In those provinces where the labour relations laws do not make the Rand formula mandatory, the automatic check-off of union dues may become part of the collective bargaining agreement if both parties (i.e., the employer and the union) agree. If there are religious objections (See below) to paying dues the dues may be donated to a mutually agreed upon charity.
In those provinces where the labour relations laws do not make the Rand formula mandatory, the automatic check-off of union dues may become part of the collective bargaining agreement if both parties (i.e., the employer and the union) agree. If there are religious objections (See below) to paying dues the dues may be donated to a mutually agreed upon charity.
The Rand formula applies to all employees whether they are union members or not. The Supreme Court of Canada has found that the freedom of association is not undermined by the Rand formula.
The Rand formula applies to all employees whether they are union members or not. The Supreme Court of Canada has found that the freedom of association is not undermined by the Rand formula.
The Rand Formula has stood the test of time. It has survived many political debates and a Supreme Court of Canada challenge in 1991. Where collective bargaining is transparent and democratic, a majority of union members understand and support the concept that a properly funded union can provide the best representation.
The Rand Formula has stood the test of time. It has survived many political debates and a Supreme Court of Canada challenge in 1991. Where collective bargaining is transparent and democratic, a majority of union members understand and support the concept that a properly funded union can provide the best representation.
What the Rand Formula is not.
What the Rand Formula is not.
The Rand formula is not “forced union membership.” Members of the bargaining unit are required to pay dues, not join the union.
The Rand formula is not “forced union membership.” Members of the bargaining unit are required to pay dues, not join the union.
In the decision, Justice Rand specifically decided against awarding the union mandatory membership.
In the decision, Justice Rand specifically decided against awarding the union mandatory membership.
Why Is the Rand Formula Important?
Why Is the Rand Formula Important?
The Rand formula promotes stability in labour relations by avoiding disputes over the collection of dues.
The Rand formula promotes stability in labour relations by avoiding disputes over the collection of dues.
It promotes fairness by preventing freeloading. Since everyone in the workplace benefits from the gains the union negotiates, everyone must pay union dues.
It promotes fairness by preventing freeloading. Since everyone in the workplace benefits from the gains the union negotiates, everyone must pay union dues.
It ensures that the union has the necessary resources to negotiate on behalf of workers and to promote and provide representation, health and safety, and numerous other services to members every day.
It ensures that the union has the necessary resources to negotiate on behalf of workers and to promote and provide representation, health and safety, and numerous other services to members every day.
It allows unions to act as a counter-balance against the increasing power of corporations and the wealthy elite.
It allows unions to act as a counter-balance against the increasing power of corporations and the wealthy elite.
Exemption on Religious Grounds for Union Dues/Check-off (3)
Exemption on Religious Grounds for Union Dues/Check-off (3)
The BC Labour Relations Code does contain an exemption on the basis of religious grounds. Religious objections 17 (1) If the board is satisfied that an employee, because of his or her religious conviction or belief (a) objects to joining trade unions generally, or (b) objects to the paying of dues or other assessments to trade unions generally the board may order that the provisions of a collective agreement of the type referred to in section 15 do not apply to the employee and that the employee is not required to join a trade union, to be or continue to be a member of a trade union, or to pay any dues, fees or assessments to the trade union, if amounts equal to any initiation fees, dues or other assessments are paid by the employee to or are remitted by the employer to a charitable organization registered as a charitable organization in Canada under Part I of the Income Tax Act (Canada) that may be designated by the board. (2) Despite any other provision of this Code, a person exempted under subsection (1) is not entitled to participate in a vote conducted by a trade union or in a vote held for the purposes of this Code.
The BC Labour Relations Code does contain an exemption on the basis of religious grounds. Religious objections 17 (1) If the board is satisfied that an employee, because of his or her religious conviction or belief (a) objects to joining trade unions generally, or (b) objects to the paying of dues or other assessments to trade unions generally the board may order that the provisions of a collective agreement of the type referred to in section 15 do not apply to the employee and that the employee is not required to join a trade union, to be or continue to be a member of a trade union, or to pay any dues, fees or assessments to the trade union, if amounts equal to any initiation fees, dues or other assessments are paid by the employee to or are remitted by the employer to a charitable organization registered as a charitable organization in Canada under Part I of the Income Tax Act (Canada) that may be designated by the board. (2) Despite any other provision of this Code, a person exempted under subsection (1) is not entitled to participate in a vote conducted by a trade union or in a vote held for the purposes of this Code.
PSAC stand on the Rand formula web link: (2)
PSAC stand on the Rand formula web link: (2)
http://psac-ncr.com/bargaining/campaign-against-rand-formula
http://psac-ncr.com/bargaining/campaign-against-rand-formula
References:
References:
(1) Information from The Professional Institute of the Public Service of Canada web site
(1) Information from The Professional Institute of the Public Service of Canada web site
(2) Information from Public Service Alliance of Canada web site
(2) Information from Public Service Alliance of Canada web site
(3) Information from British Columbia Labour Code web site
(3) Information from British Columbia Labour Code web site