Rand formula

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In Canadian labour law, the Rand formula (also referred to as automatic check-off) is a workplace situation where the payment of trade union dues is mandatory regardless of the worker's union status. This formula is designed to ensure that no employee will opt out of the union simply to avoid dues yet reap the benefits of the union's accomplishments (such as ensuring higher wages, better job security or other benefits). Supreme Court of Canada Justice Ivan Rand, the eponym of this law, introduced this formula in 1946 as an arbitration decision ending the strike of Ford Motor Company's employees in Windsor, Ontario. The Canada Labour Code and the labour relations laws of a majority of provinces contain provisions requiring the Rand formula when certain conditions are met. In those provinces where the labour relations laws do not make the Rand formula mandatory, the automatic check-off of union dues may become part of the collective bargaining agreement if both parties (i.e., the employer and the trade union) agree. Importantly, the union dues do not have to go to the union, but instead the employee can elect to donate said dues to a charitable organization.

[edit] Freedom of association issue

It has been argued that the Rand formula forces a person to join an association, thus violating his/her freedom of association. The Supreme Court of Canada determined that the Rand formula was indeed a violation of a person's freedom of association if the union does not use the fees it collects for the collective negociation process (example : donations to a union in another country). This violation has although been, so far, determined as being justified under section 1 of the Canadian Charter of Rights and Freedoms ^[1].