Describe an ‘agency shop agreement’ as a form of trade union security arrangement.
Agency shop agreement is a type of collective agreement that requires employers to deduct an agreed agency fee from the wages of workers who are not members of the trade union. It allows the employer to hire both union and nonunion workers without harming the trade union; the practice is considered to be a form of union security. The legality of agency shops varies widely from country to country, and such agreements are generally highly regulated in developed countries. An agency shop agreement is concluded by a majority trade union and a employer or employer’s organization.