Duhaime's Law Dictionary

Rand Formula Definition:

(CAN) Union dues are withheld from the pay of an employee, whether or not he or she belongs to the union.

In R v Advance Cutting & Coring, a decision of Canada's Supreme Court, one can find this:

"A well-known and common form of union security, the Rand formula ... has ... become a standard part of the labour laws of some provinces.... Under this formula, union dues are withheld from the pay of an employee, whether or not he or she belongs to the union."

In Lavigne, Justice La Forest used these words:

"[T]he Rand formula, under which dues may be collected from non-union members of a collective bargaining unit for use by the union in its discretion...."

In AUPE v Alberta, Justice Fruman of the Alberta Court of Appeal wrote this in regards to the Rand formula that it had been derived by:

"... Rand J. in Ford Motor Co. of Canada Ltd. v. U.A.W.-I.C.O. (1946). Rand attempted to balance the interest of individuals not to be forced to join an organization against their will, with the interests of the majority in being represented by a union without permitting the minority to benefit from the fruits of collective bargaining without paying for it.

"In simple terms, the formula provides that the employer must deduct union dues from the wages of every employee, without the requirement that employees become and remain members of the union."

In Thys v Canada Post, a labour arbitrator referred to "Rand formula emplyees" as:

"... non-union members who are required to pay union dues."


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