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NLRB returns to permitting employers to cease dues check-off collections during negotiations

Reversing its Obama-era decision, the Board has returned to its longstanding precedent of permitting employers to stop withholding dues, even as may have been required by a dues check-off clause in a collective bargaining agreement, once that agreement expires and the parties enter renewal negotiations.

In sum, we find that a dues-checkoff provision properly belongs to the limited category of mandatory bargaining subjects that are exclusively created by the contract and are enforceable through Section 8(a)(5) of the Act only for the duration of the contractual obligation created by the parties. There is no independent statutory obligation to check off and remit dues after expiration of a collective-bargaining agreement containing a checkoff provision, just as no such statutory obligation exists before parties enter into such an agreement. This holding and rationale apply even in the absence of a union-security provision in the same contract. Because we find that it would not be unjust to follow our normal approach when overruling precedent, we will apply our holding retroactively in this case and in other pending cases. We therefore find that the Respondent had no obligation under the Act to continue dues checkoff after the contract expired.

Source: Valley Hospital Medical Center, Inc. d/b/a Valley Hospital Medical Center, 368 NLRB No. 139 (2019).

Unions unable to charge lobbying costs to dues protesters, rules NLRB

In another setback to unions, the NLRB held that unions cannot charge lobbying costs to dues protesters.

In the NLRB’s terminology, a dues protestor is called a “Beck objector,” after the Supreme Court’s 1988 decision in Communication Workers v. Beck. There, the Supreme Court held that workers in a unionized workplace have the right to refuse to pay full union dues; instead, a so-called Beck objector can insist on paying only the share of dues that funds negotiating, administering and fighting grievances under his/her own collective bargaining agreement. Unions, therefore, set a fee rate that is lower than full dues, and must provide Beck objectors the calculations that show they are charging only Beck fees.

In this case, the Board held, first, that unions must provide those calculations to Beck objectors in the form a verified audit letter from the union’s auditor.

Next the Board turned to the union’s lobbying expenses. In this case, the union spent money to lobby state legislatures in support of legislative activity that it felt behooved its bargaining unit members, not just at this contract, but for all its members. The Board held that none of the lobbying efforts could be charged to Beck objectors.

Consistent with these cases, we conclude that lobbying expenses are not chargeable to Beck objectors under the NLRA.  We accordingly find that the Union violated its duty of fair representation by charging nonmember objectors for expenses incurred as to any of the lobbying activities at issue.

The case deals a heavy blow to unions, which frequently undertake significant lobbying efforts on behalf of their bargaining unit members.

Source: United Nurses and Allied Professionals, 367 NLRB No. 94 (3/1/19).

Union Leader Salaries Soar

Issued just before the Supreme Court’s Janus decision, a survey of union leader salaries is a stunning bookmark to the Court’s blockbuster decision holding that public employees cannot be required to pay “fair share” fees, much less dues, to unions. The survey is based on public filings by the unions. It lists total compensation packages for the 10 highest paid union presidents, ranging from $449,852 to $792,483, which the survey notes is several times higher than the average salary for CEOs, $196,050, as reported by the U.S. B.L.S. Statistics like this are likely to continue to fuel right-to-work legislation and Janus-related litigation across the country.