How do right-to-work laws affect union funding and collective bargaining?

In the United States, right-to-work laws impact unions by prohibiting union shop agreements, which previously required employees to join a union or pay service fees as a condition of employment.12

Impact on Union Funding

These laws restrict a union's ability to collect agency fees from nonunion workers to cover the costs of collective bargaining performed on their behalf. By preventing unions from mandating these payments, the laws deprive unions of financial resources. This trend was furthered by the U.S. Supreme Court ruling in Janus v. American Federation of State, County, and Municipal Employees (2018), which established that public employees must affirmatively consent to paying such fees.32

Impact on Collective Bargaining

Opponents argue that these laws weaken collective bargaining power by reducing union membership and funding. While supporters maintain that the laws protect individual freedom of association and do not inherently weaken bargaining power, critics contend that the resulting loss of resources limits a union's capacity to effectively represent workers and engage in political activities.12