The Truth about “Fair Share” Legislation

Questions and Answers

What does the “Fair Share” bill do?

The Legislation would permit unions and management to negotiate about the inclusion of a fair share clause in their collective bargaining agreement, just like unions and management in a majority of states.

What is a Fair Share clause?

A Fair Share clause would require that bargaining unit members who are not union members, but who receive the benefits of the collective bargaining agreement that the union has negotiated, pay their fair share of the costs that the union incurs in securing and enforcing the benefits of the collective bargaining agreement.

Does this legislation repeal Iowa’s so-called “Right to Work” law?

No.  Chapter 731 of the Iowa Code is not repealed.

Will this legislation force anyone to join a union?

No.  The U.S. Supreme Court has ruled that no collective bargaining agreement can require anyone to join a union.  Unions and employers may only negotiate contract provisions requiring nonmembers to pay their fair share of the union’s costs in representing them.

Will this legislation force anyone to be refused a job or discharged from a job because the worker does not belong to a union?

No.  Under Iowa Code 731, whether or not a worker belongs to a union will not prevent a person from being hired or cause their dismissal from a job.

Will this legislation apply to all workers?

No.  It does not apply to 87% of Iowa workers who do not have a union contract at their workplace. 

Can a union unilaterally impose a fair share clause?

No.  The legislation permits unions and management to negotiate about the inclusion of a fair share clause in their collective bargaining agreement.  It does not mandate inclusion of a fair share clause in any collective bargaining agreement.  As with any other bargaining proposal, if both the union and management agree to include a fair share clause in the contract, then it becomes operative.  A fair share clause is treated in all respects in the same way as any other mandatory subject for collective bargaining.

Why would an employer agree to a fair share clause?

Many employers want to avoid the divisions and animosity that occur when some workers have to pay the costs of representing other employees.

What if a worker does not want to join the union or pay a fair share fee?

In the private sector, fair share clauses are regulated by federal law.  A worker who fails to either join the union and pay union dues or pay a required fair share fee may be discharged for failure to do so, but only after being provided with actual notice of a default in payment and given a reasonable opportunity to cure the default.  In addition, a worker who objects to the union’s calculation of the amount of the fair share fee is entitled to have an impartial decision-maker determine if the amount of the fair share fee is correct and to have returned any part of the fee which the impartial decision-maker finds is improper.

In the public sector this legislation does not permit discharge of an Iowa public employee for failure either to join the union and pay union dues or to pay a fair share fee.  It would require that the public employer deduct the fair share fee from the wages of nonmembers, who are in the bargaining unit represented by the union.  There are procedures similar to those in the private sector for nonmembers of the union to object to the calculation of the fair share fee by the union.

Why can’t fair share fees automatically be deducted from the private sector nonmember’s check just like the public sector?

Providing for automatic check-off of fair share fees is pre-empted by federal law in the private sector. 

Why couldn’t the union sue the nonmember for payment of the fair share fee in lieu of dismissal from the job?

Because a nonmember does not have a direct contractual relationship with the Union and is not subject to the Union’s constitution and by-laws, the Union would not be able to collect unpaid fair share fees through a court action.

What about religious objectors?

The legislation protects the rights of Iowa workers who have objections to joining a union or making any payments to a union on religious grounds.

What do fair share fees cover?  Can they be used for political donations?

In general, expenditures for collective bargaining and contract administration activities in the nonmember’s own bargaining unit are clearly chargeable, while purely political expenditures are clearly non-chargeable to nonmembers in a fair share fee.  Unfortunately, there is no laundry list of activities which are chargeable or not chargeable.  The Courts make decisions on a case by case basis.  For example, courts have ruled that office rent and expenses, membership meeting or executive board meeting expenses and the expenses of internal communications are chargeable.  Lobbying expenses are generally not chargeable.

Is a union required to represent all employees covered by a contract (nonmembers as well as members)?

Yes.  Under federal labor law, a union that has been recognized as the certified exclusive collective bargaining representative has the duty to fairly represent all workers covered by a contract.  That means nonmembers as well as members get the same wages, hours and working conditions established by the contract.  Unions must bargain for everyone and enforce the contract terms for everyone in a fair, honest, nondiscriminatory manner.  Unions cannot refuse to pay the costs of arbitrating a grievance simply because it involves a nonmember.  A union that violates this duty of fair representation can be sued and fined.

Will this legislation discourage employers from locating or expanding in Iowa?

Industries locate in a state for many reasons.  Factors like workforce productivity, availability of skilled workers, transportation, closeness to markets and materials, quality of life and proximity to research universities are the keys to economic growth.  Iowa needs to create good jobs, but it is simply not true that fair share will drive good employers away.