What is a closed shop agreement?

A closed shop agreement is a specific type of labor contract that mandates that only union members can be hired for positions within a particular organization or company. This means that a worker must be a member of the union at the time of hiring in order to gain employment. The purpose of a closed shop agreement is to ensure that all employees within the workplace are union members, which can strengthen the union's bargaining power and maintain uniformity in labor practices and standards among the workforce.

Such agreements often come into play in industries where collective bargaining is prevalent, as they can help unions maintain a strong negotiating position with employers. The emphasis is on fostering solidarity within the workforce, where the union can advocate more effectively for workers' rights and conditions when all employees are collective members.

Understanding what a closed shop agreement entails is crucial in labor relations as it highlights the balance between employee rights, union participation, and employer choices in the hiring process.