“Open Shop” and “Union” are two construction industry employment structures. And choosing between them is an important decision for business owners, contractors, construction workers, and the community.

Here’s what each term means and the differences between them:

Union: is a labor organization representing workers in negotiations with employers. In a unionized construction company, all workers are required to be union members and pay union dues. In addition, workers in a unionized company are covered by a collective bargaining agreement outlining their wages, benefits, and working conditions.

Open Shop: is a construction company that hires both union and non-union workers without requiring workers to be union members. In an open shop, workers are not bound by a collective bargaining agreement and are not required to pay union dues.

For several reasons, Open Shop workers are becoming increasingly accepted. From greater flexibility to lower costs, the advantages of an open shop make it an attractive option for workers and employers alike.

• Flexibility: One of the main advantages of an open shop is its flexibility for workers and employers. Workers have more control over their wages, benefits, and working conditions, and employers have greater freedom to make decisions based on their needs and financial constraints.
• Cost: In a unionized construction company, all workers are required to be union members and pay union dues. These fees can add up over time and can be a significant cost for workers. In an open shop, workers are not required to pay union dues, making it a more cost-effective option for budget-conscious people.
• Ability to Negotiate: In a unionized company, workers are represented by a labor organization that negotiates on their behalf. In an open shop, workers can negotiate directly with their employer, which may lead to better outcomes for both parties.
• Non-Unionized Workforce: In some areas, there may be a shortage of unionized workers. In these cases, employers may turn to Open Shop workers to fill the gap, as they are able to hire workers who are not union members.

Union and Open Shop jobs can vary in several other key areas:

• Lower Wages and Benefits: Open shops may offer lower wages and fewer benefits than unionized companies. This can lead to resentment among union members who feel that non-union workers are undermining their hard-earned wages and benefits.
• Work Quality and Productivity: Unions typically have strict training programs and standards for their members, which can result in higher quality work and improved productivity.
• Schedule and Project Deadlines: Unions typically have strict rules and regulations for their members, which can result in delays and disruptions to project schedules. Non-Union and Open shops may be more flexible and able to adapt to changing project needs. When making this decision, stakeholders should consider the importance of schedule and project deadlines.
• Legal Requirements: Stakeholders should consider the legal requirements of the jurisdiction in which they operate, as some jurisdictions may require that construction projects use union labor. You should familiarize yourself with local laws and regulations before making this decision.
• Community Relations: The use of Unions or Open Shop labor can have an impact on community relations. Unions are often associated with community activism and can increase community support for a project. Conversely, open Shops may be less supportive of the community, resulting in less community support.

It’s important to note that not all union members may dislike Open Shops, and there may be individual union workers who support Open Shop employment structures. Ultimately, choosing between an Open Shop and a Union Shop will depend on each worker’s specific needs and priorities.

Choosing between a union and an open shop in the construction industry is an important decision that requires careful consideration. When making this decision, stakeholders should weigh their budget and labor cost goals, work quality and productivity, schedule and project deadlines, legal requirements, and community relations.

Disclaimer: This post is for informational purposes to help you understand the options and is not an endorsement of either strategy.