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August 11, 2006
Is Nonpayment of Union Dues Grounds for Termination?

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A collective bargaining agreement (CBA) between a hospital and a union included a union-security provision requiring registered nurses (RNs) to pay union dues. When 14 RNs refused to pay, the union sought to have them fired, but the employer refused.

What happened. St. John's Mercy Medical Center, a not-for-profit corporation based in St. Louis County, Missouri, employs 1,400 RNs at an acute, tertiary care hospital. On behalf of the RNs, the United Food & Commercial Workers Union Local 655, AFL-CIO, CIC, entered into a CBA with St. John's on October 23, 2001. The CBA was in effect until October 22, 2004.

Under the terms of the CBA, all RNs were required to become union members and pay dues. The agreement also specified that St. John's was obligated to discharge any RN who failed to pay dues.

The union sent written notification to 14 RNs that they had 2 weeks to pay the required dues and, later, submitted a letter to St. John's, asking that the RNs be discharged for failure to do so. Consistent with its responses to similar requests in the past, St. John's refused. In fact, in April 2003 and April 2004, the organization sent letters to RNs who had failed to pay dues stating that no one would be fired for not paying dues.

The union filed an unfair labor practice charge with the National Labor Relations Board (NLRB) and asked that the 14 RNs be discharged for failure to pay dues for 4 months. An administrative law judge ordered that the RNs be discharged, and the order was upheld by an NLRB panel. St. John's challenged the order before the U.S. Court of Appeals for the 8th Circuit, which covers North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Missouri, and Arkansas.

What the court said. St. John's argued that discharging the RNs would violate Missouri public policy and that healthcare institutions should be treated differently from other companies.

The appeals court affirmed the NLRB order, explaining "[t]here is no Missouri statute that prohibits the enforcement of a union-security provision or the discharge of nurses," and that while nursing shortages may make it more difficult for St. John's to replace the nurses, the task was not impossible, according to the court. In addition, the court found no evidence that Congress intended to exempt hospitals from avoiding their duties under union-security provisions in CBAs. St. John's Mercy Health Systems v. NLRB, No. 05-2306/2392, U.S. Court of Appeals, 8th Cir. (2006).

What to remember. Just because you disagree with a contract provision doesn't mean you can ignore it. Unless the union agrees to a change, you are bound by the terms of the agreement until it expires.


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