Cihon/Castagnera, Employment and Labor Law, 9e Instructor’s Manual Chapter 18
Unions cannot use the dues or fees of non-union employees to pay for union activities that
do not relate to collective bargaining. In this situation, the non-union employees’ fees are reduced by
the amount of union expenditures that are not spent on collective bargaining activities.
Unions must provide an objecting member with an accounting of union expenditures in
collective bargaining and political activities along with an explanation of the basis of dues and fees.
Objectors must also be given the opportunity to challenge the dues and fees assessment before an
impartial decision-maker. If this is the case, the union must hold the disputed amounts in escrow until
the challenges are complete.
Unions may require objecting non-members to take these fee disputes to arbitration, but if
Executive Order 13201 signed by George W. Bush in 2001 applied to all firms conducting
business with the federal government and required those firms to post a notification that employees
subject to a union security agreement had the right to refuse to pay the portion of their dues that were
unrelated to collective bargaining, contract administration, or grievance adjustment expenses.
CASE 18.3 INTERNATIONAL BROTHERHOOD OF TEAMSTERS, LOCAL 776, AFL-CIO
(Caroline Freight Carriers Corporation)
324 NLRB 1154 (1997)
Background: Carolina Freight, the employer, recognized the respondent Teamsters Union as the
exclusive collective bargain representative in a unit appropriate for collective bargaining purposes. The
CBA contained a union shop clause. The employer hired Timothy Blosser as a casual dock laborer on
May 2, 1992. On May 27, the Union sent the employee a registered letter outlining Blosser’s union
membership and financial obligations, stating that he must join or become a Union member on, but not
before June 2, 1994, and if he did not do so, the Union would inform the employer that he is ineligible
for employment. The letter did not reference Blosser’s right to opt out or pay less than full dues. Blosser
responded to the Union’s demand on June 1st alleging a violation of the duty of fair representation for
not advising him of his right to opt out. In this letter he also asserted that nonmembers did not have to
pay a fee equal to union dues, instead they had to pay a fee equal to a share of costs the union can prove.
The Union responded on June 3 with an accounting and a demand that he had seven days to comply.
Blosser responded to this letter with a request for an independent accounting’s verification instead of the