What is Agency Shop?

MMB allows unions to negotiate a provision which requires all employees in the representation unit who are not dues-paying members to pay the union an “Agency Shop” or “Service” fee in lieu of dues. The Agency fee is generally a slightly lower amount than membership dues since it cannot, by law, include the percentage of dues the union uses for political activities. Agency shop payers must, by law, receive the same representation as dues paying members, except that they are not entitled to participate in union elections or to participate in votes to ratify/reject MOUs.