How Member-Only Unions Could Solve the Free-Rider Problem

InsideSources covers the release of CEI’s latest report “Supreme Court Can Strike a Victory for Worker Freedom in Janus Case.”

The U.S. Supreme Court could necessitate the need for members-only unions if it decides to rule against mandatory dues in the public-sector, argued a report Wednesday.

Labor unions claim that optional dues encourage workers to free-ride on the benefits they fight for. Workers might decide not to fund their union knowing that they will get the benefits anyway. But a decision against mandatory union dues wouldn’t be a complete victory for the workers that oppose them either.

The Competitive Enterprise Institute (CEI), a free-market think tank, released a report highlighting how members-only unions can potentially solve problems for both sides in the case. Members-only unions aren’t obligated to represent nonmembers who don’t pay dues – though unions lose a huge benefit known as exclusive bargaining rights.

“Despite the potential benefits from banning forced union dues, neither workers nor unions likely will be completely satisfied with the new arrangement,” the CEI report states. “Non-members will still work under a union-negotiated agreement they may not want, and unions must represent employees who do not pay dues.”

Read the full article at InsideSources.