The Rand Formula or “mandatory check-off” is a straightforward concept in labour law: employees in a unionized workforce must pay union dues. It was born of an arbitration decision by Supreme Court Justice Ivan Rand that ended a 1945 strike against Ford in Windsor, Ontario. Before Rand, unions could only collect dues from members on a voluntary basis and the employer did not assist in the collection. The UAW sought to make union membership mandatory and have Ford collect and remit dues to the union. Ford sought to keep union membership voluntary so as to limit the union’s power. Rand ultimately ruled that while membership would be technically voluntary, employees had to pay dues whether or not they chose to formally join the union.
