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Attorneys weigh in on potential impacts of Supreme Court ruling

By: Josh Kulla//July 19, 2018//

Attorneys weigh in on potential impacts of Supreme Court ruling

Josh Kulla//July 19, 2018//

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While public-sector may have taken a hit from a recent ruling by the , legal experts say ramifications of the court’s decision in Janus v. American Federation of State, County and Municipal Employees are not likely to extend to private-sector trade unions.

The court ruled 5-4 on June 27 that compulsory public-sector 鈥渇air share鈥 or 鈥渁gency鈥 labor union dues for non-members violate the First Amendment and are unconstitutional. With the decision, the court upheld a challenge to the legality of such dues brought by Illinois state child support specialist Mark Janus.

Private-sector unions, by contrast, don’t normally face this issue. As such, legal professionals say Janus should not have much impact on the numerous trade unions that work with local contractors.

鈥淟egally, I don’t see a whole lot in the opinion that suggests immediately we’re going to have some private-sector employers say that Janus should be extended to the private sector,鈥 said Dan Rowan, a Bullard Law attorney who specializes in labor law. 鈥淭here are some arguments to be made, but those arguments have been made before in the private sector, so that’s how we have the current state-by-state system.鈥

Many states, including Oregon and Washington, have public-sector collective bargaining statutes allowing agreements that require all employees within a bargaining unit to pay fair share fees toward the union’s costs related to collective bargaining. In the 1977 case, Abood v. Detroit Board of Education, the U.S. Supreme Court held that such agreements are constitutional.

Janus, however, undoes that earlier precedent.

Portland attorney Todd Lyon, a partner at Fisher & Phillips, said the court’s decision could have lasting effects on public-sector unions.

鈥淚t’s, frankly, huge,鈥 he said. 鈥淎 union is, in many ways, a business. They depend on accounts receivable in the same way other businesses do. And their accounts receivable is in the form of due money or fair share fee money coming from employees.鈥

Not being able to compel non-members to pay those fees, Lyon said, will inevitably erode the services that unions currently provide their members.

When it comes to trade unions, however, Lyon agreed with Rowan’s analysis.

鈥淚 would say that the chances of this having any impact on the private sector are practically zero,鈥 Lyon said. 鈥淭he only way that this would have any traction, it seems to me, is if in light of this decision members of Congress would decide to make a right-to-work law nationwide.鈥

In Oregon, the effect on public-sector unions remains uncertain. ORS 292.055 allows employees to authorize wage deductions for union fees and others. In the wake of Janus, however, the legality of this statute is now under review.

鈥淲e’re still evaluating whether Janus is going to pre-empt those authorization forms by saying even those authorization forms are now illegal in light of this decision,鈥 Lyon said. 鈥淲e’re still kicking that around and trying to determine the impact.鈥

Oregon public-sector unions remain relatively strong compared to those in many other states, Rowan said. He expects that to continue, particularly among public-safety unions that traditionally have the highest memberships.

鈥淚 think the consensus is it will vary from union to union and employer to employer,鈥 he said. 鈥淭he public-sector unions are well supported and involved in politics as compared to some states where the labor movement is not as strong. In Oregon, I think the public-sector unions will continue to have a strong presence and play an important role.鈥



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