What was the significant decision in the Rand case in 1945?

The Rand case determined that all employees had to pay union dues even if they did not belong to a union.

The case arose out of a dispute between the Ford Motor Company and the United Auto Workers. A strike took place and as part of the settlement an arbitrator, Mr. Justice Ivan Rand, was appointed to bring the union and employer together. The payment of dues by all workers was one of the terms of the subsequent agreement reached by the union and employer. The rational for the principle was that every employee benefited from union representation.

The principle became generally accepted and is now known as the Rand formula. One of the immediate benefits to unions was an improved degree of financial security.

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