Financial core
Encyclopedia
A 1963 United States Supreme Court ruling, NLRB v. General Motors, defined the term financial core as it applies to compulsory union
membership. The term is frequently abbreviated to FiCore or Fi-Core.
(Sec. 8 (a) (3)) an employer and a labor organization may agree to condition employment upon membership in the union. The 1963 ruling limited the burdens of membership upon which employment may be conditioned to the payment of initiation fees and monthly dues. In the words of the court, "Membership as a condition of employment is whittled down to its financial core." Or, in other words, "If an employee in a union shop unit refuses to respect any union-imposed obligations other than the duty to pay dues and fees, and membership in the union is therefore denied or terminated, the condition of membership for 8 (a) (3) purposes is nevertheless satisfied and the employee may not be discharged for nonmembership even though he is not a formal member."
In 1988, the Supreme Court again addressed the financial core issue in Communications Workers of America v. Beck
. The question this time was whether an employee who is not a formal member in the sense above, but rather a financial core member, can be required to pay full union dues and fees, if those fees are used for purposes beyond collective bargaining, contract administration, or grievance adjustment (so-called collective bargaining
activities). The court ruled in a 5 to 3 decision, with Justice William Brennan
writing for the majority, that the financial core obligation does not include "the obligation to support union activities beyond those germane to collective bargaining, contract administration, and grievance adjustment."
The primary impact of the financial core issue has been in the acting industry. By joining the Screen Actors Guild
or American Federation of Television and Radio Artists
as a financial core member, an actor can pursue work in states such as California, where union membership is a prerequisite to work in the industry. Full members of these unions are prohibited from working non-union jobs, but financial core members are not restricted by the rules of the unions and so may work either union or non-union jobs. When working a union job, they would receive the same benefits as full constitutional members. Similarly, in the Writers Guild of America
, financial core members are able to remain working during labor strikes.
Proponents of the decision to declare financial core status note that it gives actors a wider range of choices since they can elect to take work that is not available to full members.
Opponents of the decision to declare financial core status note that it weakens the union which won the benefits enjoyed by all workers, even those not bound by union rules. Some claim that financial core members are essentially free riders
. However, fi-core workers still pay the majority of union dues; for example, the Financial Core Status deduction for non-members of the Writers Guild of America, West
over April 2009–March 2010 was 12.5%.
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
membership. The term is frequently abbreviated to FiCore or Fi-Core.
Origin
Under the National Labor Relations ActNational Labor Relations Act
The National Labor Relations Act or Wagner Act , is a 1935 United States federal law that limits the means with which employers may react to workers in the private sector who create labor unions , engage in collective bargaining, and take part in strikes and other forms of concerted activity in...
(Sec. 8 (a) (3)) an employer and a labor organization may agree to condition employment upon membership in the union. The 1963 ruling limited the burdens of membership upon which employment may be conditioned to the payment of initiation fees and monthly dues. In the words of the court, "Membership as a condition of employment is whittled down to its financial core." Or, in other words, "If an employee in a union shop unit refuses to respect any union-imposed obligations other than the duty to pay dues and fees, and membership in the union is therefore denied or terminated, the condition of membership for 8 (a) (3) purposes is nevertheless satisfied and the employee may not be discharged for nonmembership even though he is not a formal member."
In 1988, the Supreme Court again addressed the financial core issue in Communications Workers of America v. Beck
Communications Workers of America v. Beck
Communications Workers of America v. Beck, 487 U.S. 735 is a decision by the United States Supreme Court which held that, in a union security agreement, unions are authorized by statute to collect from non-members only those fees and dues necessary to perform its duties as a collective bargaining...
. The question this time was whether an employee who is not a formal member in the sense above, but rather a financial core member, can be required to pay full union dues and fees, if those fees are used for purposes beyond collective bargaining, contract administration, or grievance adjustment (so-called collective bargaining
Collective bargaining
Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...
activities). The court ruled in a 5 to 3 decision, with Justice William Brennan
William J. Brennan, Jr.
William Joseph Brennan, Jr. was an American jurist who served as an Associate Justice of the United States Supreme Court from 1956 to 1990...
writing for the majority, that the financial core obligation does not include "the obligation to support union activities beyond those germane to collective bargaining, contract administration, and grievance adjustment."
Impact
Most significantly, this financial core definition of the minimum union dues required to get and/or keep employment under a compulsory union contract allows objecting union members to withhold that portion of their compulsory union dues that the union spends on any political activities, campaigns or causes. By resigning full constitutional membership in their labor union and declaring themselves financial core workers citing the Beck ruling, financial core members are termed dues-paying-non-members. They keep their union jobs and all union benefits. However, since they are no longer constitutional members of the labor union, they are free from any union internal rules and regulations governing full constitutional members. They can not hold union elected office nor can they even vote on the union contract they support financially.The primary impact of the financial core issue has been in the acting industry. By joining the Screen Actors Guild
Screen Actors Guild
The Screen Actors Guild is an American labor union representing over 200,000 film and television principal performers and background performers worldwide...
or American Federation of Television and Radio Artists
American Federation of Television and Radio Artists
The American Federation of Television and Radio Artists is a performers' union that represents a wide variety of talent, including actors in radio and television, as well as radio and television announcers and newspersons, singers and recording artists , promo and voice-over announcers and other...
as a financial core member, an actor can pursue work in states such as California, where union membership is a prerequisite to work in the industry. Full members of these unions are prohibited from working non-union jobs, but financial core members are not restricted by the rules of the unions and so may work either union or non-union jobs. When working a union job, they would receive the same benefits as full constitutional members. Similarly, in the Writers Guild of America
Writers Guild of America
The Writers Guild of America is a generic term referring to the joint efforts of two different US labor unions:* The Writers Guild of America, East , representing TV and film writers East of the Mississippi....
, financial core members are able to remain working during labor strikes.
Proponents of the decision to declare financial core status note that it gives actors a wider range of choices since they can elect to take work that is not available to full members.
Opponents of the decision to declare financial core status note that it weakens the union which won the benefits enjoyed by all workers, even those not bound by union rules. Some claim that financial core members are essentially free riders
Free rider problem
In economics, collective bargaining, psychology, and political science, a free rider is someone who consumes a resource without paying for it, or pays less than the full cost. The free rider problem is the question of how to limit free riding...
. However, fi-core workers still pay the majority of union dues; for example, the Financial Core Status deduction for non-members of the Writers Guild of America, West
Writers Guild of America, west
Writers Guild of America, West is a labor union representing film, television, radio, and new media writers. The Guild was formed in 1954 from five organizations representing writers, which include the Screen Writers Guild...
over April 2009–March 2010 was 12.5%.