The Rand formula (also referred to as automatic check-off) refers to a workplace situation where payment of labour union dues is mandatory even if the worker is not a member of the union. The name comes from Supreme Court of Canada Justice Ivan Rand, who introduced this formula in 1948 as an arbitration decision ending the strike of Ford Motor Company's employees in Windsor, Ontario. The Rand formula has been officially implemented in Canadian legislation and in other countries. For the IBM collaboration software product, see IBM Workplace. ... A union (labor union in American English; trade union, sometimes trades union, in British English; either labour union or trade union in Canadian English) is a legal entity consisting of employees or workers having a common interest, such as all the assembly workers for one employer, or all the workers... The Supreme Court Building in Ottawa The Supreme Court of Canada (French: Cour suprême du Canada) is Canadas highest court and is located in the capital city of Ottawa. ... The Ford Motor Company (often referred to simply as Ford; sometimes nicknamed FoMoCo), NYSE: F is an automobile maker founded by Henry Ford in Dearborn, Michigan, United States (where the company is currently headquartered), and incorporated on June 16, 1903. ... Template:Hide = Motto: Template:Unhide = City of Windsor, Ontario, Canadas Location. ...
"The RandFormula 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)," the Canadian Encyclopedia notes.
The genius of Rand's decision is that it recognizes the benefits all workers derive from collective bargaining and the inherent obligation of each employee to contribute by paying union dues.
The RandFormula is a seminal compromise, balancing the competing rights of employers and employees on a variety of levels.
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