Which labor arrangement requires workers to pay the equivalent of union dues but does not require joining the union, and applies to public sector in some states?

• A. Open shop
• B. Union shop
• C. Agency shop
• D. Closed shop

Answer: (C)

Agency shop means workers can be represented by a union for collective bargaining without having to join the union. Instead, they pay an agency fee equal to the union dues to help cover the costs of representation. This arrangement ensures that everyone who benefits from the union’s bargaining power contributes, even if they don’t choose to become a member. In many states, this type of setup has been used in the public sector to balance the union’s role in negotiating with individual employees’ choice about membership, though legal rules about mandatory fees for public employees have evolved over time.

By contrast, an open shop allows employees to work without joining or paying dues to the union at all; a union shop requires new hires to join the union and pay dues within a certain period as a condition of continued employment; and a closed shop requires membership in the union before hiring. Thus, the described arrangement aligns with an agency shop.