The Rand Formula is a form of union security whereby an employer deducts a portion of the salaries of all employees within a bargaining unit, union members or not, to go to the union as union dues ("checkoff"). It was named for a decision handed down 29 Jan 1946 by Mr Justice Ivan RAND
of the Supreme Court of Canada while he was arbitrating the WINDSOR STRIKE
(12 Sept-20 Dec 1945). The original formula was based on the assumption that the union is essential for all workers and must be responsible for them. Two interrelated provisions following from this assumption guaranteed the union the financial means to carry out its programs, and established the financial penalties for employees and unions engaging in work stoppages or illegal strikes. For employees, these sanctions could consist of daily fines and loss of seniority; for the union, the suspension of union dues. Collective agreements have spread a modified Rand Formula throughout Canada, and some provinces have given it legal force.
See also LABOUR RELATIONS.
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